IAWP LEGISLATIVE INFORMATION October 2005 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office Week of October 3, 2005 CONGRESS POISED TO SEND PRESIDENT BUSH SEVEN-WEEK FY 2006 STOP GAP SPENDING BILL The House yesterday approved (346-65) on a largely bi-partisan basis legislation (H.J. Res. 68) to extend federal government operations by seven weeks into the new federal fiscal year, which begins at midnight tonight. The Senate is expected to consider and approve the legislation before the end of the day. A handful of members in the Senate minority have expressed concerns with spending levels for some programs funded by the bill, but are not likely to add amendments. Leaders of both parties in the House and Senate have agreed to work to keep the legislation free of amendments. Amendments added to the bill would likely force a temporary shutdown of federal government operations as the House has adjourned for the week and would not be able to consider an amended bill until next week. The short-term continuing resolution (CR) would appropriate funding for programs for a seven-week period at the lesser of the two amounts approved by the House and Senate thus far in their FY 2006 spending bills. According to officials in the Employment and Training Administration, because Workforce Investment Act and Employment Services (ES) programs are funded on program year basis, they are shielded from any effect of short-term continuing resolutions. Nonetheless, Congressional approval of a CR that establishes appropriation reductions for a seven-week period could make it easier for Congress to approve longer-term cuts for final FY 2006 approved appropriations. The Administration and Congress are under pressure to appropriate additional emergency funding in response to Hurricane Katrina while not increasing the annual federal deficit. This will make it potentially more difficult to maintain level funding into the new federal fiscal year. USDOL RELEASES SCALED BACK SBR GRANTS The US Department of Labor today announced grants totaling $63 million for state administration of their unemployment insurance (UI) programs. Although the release of the grant funds is a positive development, the amount was reduced due to the redirection of some of the funds (projected to total between $100 and $150 million) to states providing UI services in response to Hurricane Katrina. The USDOL has earlier in the year directed some above base funding for reemployment assessments and for implementation of the SUTA Dumping Prevention Act of 2004. Information collected from states over the past two weeks on supplemental appropriation requests show a number of states have recently requested additional funds to manage ongoing UI costs from Hurricane Katrina. According to a press announcement from the USDOL, the $63 million in SBR grants will enable states to upgrade the integrity of their UI systems. The grants will support states in prevention, detection and recovery of improper benefit payments through the National Directory of New Hires (NDNH) to block individuals from claiming benefits after they return to work. The SBR funds will provide assistance in promoting quick reemployment of beneficiaries by enhanced use of automated systems to assess beneficiaries' needs to connect to reemployment services. The grants will be used to strengthen data integrity and security by augmenting current security measures to protect data from unauthorized access. USDOL RELEASES FY 2005 TAA TRAINING FUNDS The US Department of Labor (USDOL) announced today the release of $59.3 million in state TAA funds for job training, job search and relocation assistance to workers who lose their jobs for trade-related reasons. The leftover FY 2005 funds come from a reserve account USDOL established under the TAA program. Congress allocates approximately $220 million annually for TAA training. In 2004, the USDOL began a new system for disbursing the allocations using a formula that aligns resources with state training needs. Each year, 75 percent of available TAA funds, or $165 million, are released on October 1. The remaining 25 percent is reserved for qualifying states experiencing large, unexpected layoffs during the year. Week of October 18, 2005 CONGRESS CONTINUES LOOKING TO WORKFORCE PROGRAMS FOR HURRICANE RECOVERY Congress returns to session next week with a number of workforce related bills on its plate. The House late last week introduced legislation (H.R. 3975) that focuses on expanding and providing flexibility for education programs, childcare and assistance to displaced workers. H.R. 3975 would give states and local workforce investment areas the authority to apply for waivers to transfer funds in the Workforce Investment Act (WIA) Adult, WIA Dislocated Worker, WIA Youth and Wagner-Peyser programs to where they are most needed. Only states or local workforce investment areas where the hurricane disaster occurred or which have significant numbers of individuals adversely affected by the hurricane would be eligible to apply to the Secretary of Labor for the waiver. The bill was introduced by Representative Bobby Jindal (R-LA) and referred to the House Committee on Education and the Workforce where it has yet to be considered. The House Committee on Education and the Workforce is the House authorizing Committee responsible for reauthorization of WIA, which in early 2005 approved its WIA bill (H.R. 27). Separately, a legislative "discussion draft" was circulated recently to gather input on establishment of "worker recovery accounts," which would provide up to $5,000 to each worker in need of employment and training following Hurricanes Katrina and Rita. The discussion draft names the states of Louisiana, Mississippi, Alabama and Texas as eligible entities. Under the legislative draft, eligible workers would be able to use their worker recovery account to purchase intensive, training and supportive services as defined in WIA. Recipients of worker recovery accounts that obtain full-time employment before their 13th week of unemployment insurance (UI) benefits or before 13 weeks following creation of the worker recovery accounts would receive the balance remaining in their account not to exceed $1,000 in cash. Finally, another bill (H.R. 3971), with separate versions approved by the House and Senate last week, could provide supplemental funding to Louisiana, Mississippi and Alabama for the payment of UI benefits. The Senate late last Friday removed language approved by the House to provide $400 million from the Federal Unemployment Account (FUA) to Louisiana, $85 million to Mississippi and $15 million to Alabama. The use of funds in the FUA to assist states impacted by Hurricane Katrina was suggested by NASWA to House Committee on Ways and Means staff. Funds are divided among states according to their share of expected increased unemployment benefit payments attributable to Hurricane Katrina. The bill is expected to enter conference negotiations next week. NASWA staff met with House Labor, Health and Human Services and Education Appropriations Subcommittee staff this week to further discuss information received from states on funding needs in response to Hurricane Katrina. The House staff expressed a desire to continue receiving updates from NASWA and is particularly interested in amounts states may have applied for in National Emergency Grant (NEG) funds and the status of the request(s). Information on administration of the Disaster Unemployment Assistance programs is also of interest. FINAL FY 2006 APPROPRIATIONS LEVELS ARE NOT LIKELY TO BE KNOWN UNTIL AT LEAST MID-NOVEMBER Federal government programs continue to operate under a seven-week continuing resolution (CR) through November 18 appropriating funding at the lesser of the two amounts approved by the House and Senate thus far in their FY 2006 spending bills. But because Workforce Investment Act (WIA) and Employment Services (ES) programs are funded on a program year basis, they are shielded from any effect of the seven-week continuing resolution. Nonetheless, there is concern among many in Washington that Congressional approval of a CR establishing appropriation reductions for a seven-week period could make it easier for Congress to approve the cuts for the remainder of the fiscal year as it finalizes FY 2006 appropriations. Congressional leaders again expressed last week a desire to independently complete remaining unfinished appropriation bills. The House approved its FY 2006 Labor, HHS and Education appropriations bill on June 24, but the Senate has not yet moved its Labor, HHS and Education spending bill beyond committee. Congress has five-weeks until the current CR expires to finish its spending bills without being forced to pass another stop-gap bill. Congress is expected to consider additional bills over this five-week period to provide funding for hurricane recovery. The competing goals of appropriating more funds for hurricane recovery while reigning in FY 2006 spending have prompted Congressional leaders to suggest another across-the-board cut may be necessary. According to a Congressional staff member familiar with the appropriations process, the Labor, HHS and Education spending bill could be approved sometime in the next five weeks with an across-the-board cut applied to it later as amounts of final FY 2006 spending are known. This sets up two independent spending battles, the first potentially more controllable than the second. The first battle is to ensure the final FY 2006 Labor, HHS and Education spending bill includes adequate funding for workforce programs. The second, relating to the across-the-board cut would be very difficult to influence as it would likely apply to all domestic spending, making it difficult to insulate workforce program spending from the cut. TANF GRANTS FOR STATES ANNOUNCED The Administration for Children and Families (ACF) in the Department of Health and Human Services this week announced $200 million in "High Performance Bonuses" from the Temporary Assistance for Needy Families (TANF) program. The awards to 41 states and the District of Columbia are for transitioning welfare recipients to work and for job retention, increased earnings or meeting other goals of welfare reform. The 1996 TANF law authorized bonuses to states for annual achievements aimed at strengthening families through work and reforming the welfare system. The list of state awards is available on the Workforce ATM by selecting Welfare on the Subject Locator. Week of October 11, 2005 HOUSE APPROVES BILL TO PROVIDE UI ASSISTANCE FOR STATES IMPACTED BY HURRICANE KATRINA The House yesterday approved by unanimous vote the Social Services Emergency Relief and Recovery Act (H.R. 3971) to provide $500 million in federal unemployment funds to disaster states to help them pay regular UI benefits. The bill would provide $400 million from the Federal Unemployment Account (FUA) to Louisiana, $85 million to Mississippi and $15 million to Alabama. The use of funds in the FUA to assist states impacted by Hurricane Katrina was suggested by NASWA to House Committee on Ways and Means staff. Funds are divided among states according to their share of expected increased unemployment benefit payments attributable to Hurricane Katrina. The legislation includes a technical change recommended by the U.S. Department of Labor to provide all states the flexibility to use their current federal unemployment administrative grants to assist Hurricane Katrina victims in need of unemployment benefits. The technical change allows states to be reimbursed for UI administrative expenses incurred assisting other states with their claimant workload. Additionally, the legislation would open eligibility to the Temporary Assistance for Needy Families (TANF) contingency fund to the states of Louisiana, Mississippi and Alabama to provide short-term, nonrecurring cash benefits to Katrina evacuees from within their own state. The bill would clarify that disaster states may be reimbursed from the current TANF contingency fund for emergency assistance they pay to intrastate evacuees from Hurricane Katrina, just like all states may be reimbursed for emergency assistance provided to interstate evacuees under the TANF hurricane relief law (P.L. 109-68) signed into law on September 21. The House bill was sent to the Senate where it was amended. A House/Senate conference on the bill will not occur until the week of October 17 as Congress is in recess next week. USDOL PARTNERS WITH MANPOWER TO HELP DISPLACED WORKERS FIND JOBS U.S. Secretary of Labor Elaine Chao announced this week an expanded partnership with Manpower, Inc. to help Mississippi workers displaced by Hurricane Katrina find new jobs. According to the Department's press announcement, the partnership will "leverage the resources and reach of the one-stop career centers and Manpower, Inc. to deliver employment and training services that meet evacuees' long-term career needs." The partnership will target areas with high concentrations of displaced Mississippi workers. Under the partnership, evacuees will receive personal assistance from trained career counselors both from Manpower and the workforce investment system. ETA EXTENDS O*NET DATA COLLECTION UNTIL NOVEMBER 6 The Employment and Training Administration (ETA) announced this week it is seeking Office of Management and Budget (OMB) approval for the collection of data under the Occupational Information Network (O*NET) until November 6. The O*NET data collection program yields information from job incumbents/occupational specialists on worker and job characteristics to populate the O*NET database. The O*NET database information is used for a wide range of purposes related to career counseling and development, curriculum design, human resources functions and workforce investment efforts. The O*NET data collection methodology will include contacting businesses/associations to gain their cooperation and then to collect information from their employees. SEPTEMBER JOBLESS LITTLE CHANGED WHILE UNEMPLOYMENT RATE TICKS UP TO 5.1 PERCENT Non-farm payroll employment declined by 35,000 in September. The unemployment rate rose two-tenths of a percentage point from August to 5.1 percent. September's employment situation report released by the Bureau of Labor Statistics (BLS) is the first to reflect the impact of Hurricane Katrina. The BLS worked throughout the last month to contact households in storm-affected areas with the exception of two parishes in Louisiana under mandatory evacuation orders for much of the period. This was the first time since May 2003 there was a drop in employment. Week of October 24, 2005 PRESIDENT SIGNS BILL PROVIDING $500 MILLION FROM FEDERAL UI TRUST FUND TO HURRICANE IMPACTED STATES President Bush yesterday signed into law legislation (H.R. 3971) to provide $500 million in federal unemployment funds to Alabama, Louisiana and Mississippi to help them pay regular UI benefits. The new law provides $400 million from the Federal Unemployment Account (FUA) to Louisiana, $85 million to Mississippi and $15 million to Alabama. According to the House Committee on Ways and Means, funds are divided among states according to their share of expected increased unemployment benefit payments attributable to Hurricane Katrina. The FUA account is projected to hold more than $14 billion at the end of FY 2006. The new law's cost would be offset by prohibiting Medicare and Medicaid from covering drugs that treat erectile dysfunction, saving $2 billion over the next ten years. The law includes a technical change recommended by the U.S. Department of Labor to provide all states the flexibility to use their current federal unemployment administrative grants (on or after August 28, 2005) to assist Hurricane Katrina victims in need of unemployment benefits. The technical change allows states to be reimbursed for UI administrative expenses incurred assisting other states with their claimant workload. Language was removed from the bill by the Senate before final passage that would have opened eligibility to the Temporary Assistance for Needy Families (TANF) contingency fund to the states of Louisiana, Mississippi and Alabama to provide short-term, nonrecurring cash benefits to Katrina evacuees from within their own state. The UI provisions included in the law were in jeopardy earlier this month when the Senate removed the House approved language to direct the FUA funds and make the technical change providing flexibility in the use of UI administrative grant funds. The House prevailed by concurring to the Senate's amended bill and adding back its UI language. HOUSE COMMITTEE APPROVES WELFARE REAUTHORIZATION BILL The House Education and the Workforce Committee yesterday approved on a party-line vote, legislation (H.R. 240) to reauthorize and reform the 1996 welfare law (P.L. 104-193). The welfare law currently operates under its 11th extension through December 31, 2005. Yesterday's action by the House Committee is the latest effort by Congress to move toward a long-term reauthorization since the Senate Finance Committee approved its bill (S. 667) on March 17 by a non-partisan voice vote. Neither the House nor the Senate has scheduled floor consideration of welfare reauthorization but this could shortly change. The House Education and the Workforce Committee hedged its bets yesterday by approving the bill twice, sending it to the House floor via two separate vehicles. The first action taken by the Committee was to attach the welfare reauthorization language to its budget reconciliation bill. The House is expected to consider budget reconciliation bills next week, providing an opportunity to attach unfinished bills, including the welfare bill. The budget reconciliation process is used to force authorizing committees to adhere to caps on spending established earlier in the year. Congressional Majority Party leadership is anxious to approve reconciliation bills to offset spending for hurricane relief and other priorities. The second action taken by the Committee yesterday was to move H.R. 240 independently as a stand-alone bill. This would provide an alternative route to approval if the reconciliation process breaks down. Even if reconciliation bills, including the one approved this week by the Education and the Workforce Committee, are approved by the House, they would still require approval by the Senate. This is where the welfare reauthorization bill could run into trouble, as Senate Finance Committee Chairman Charles Grassley (R-IA) has expressed reservations about moving the bill through via the reconciliation process. A complicating issue is the difference in amounts provided under the House and Senate welfare bills for child care. The Senate bill contains $6 billion more in child care funding than the House version's $5.8 billion total. Chairman Grassley was able to move his welfare bill through the Finance Committee by a near unanimous vote because of assurances he gave to members that he would be open to future amendments increasing child care spending. The next two weeks will prove instructive on the future of a long-term reauthorization of welfare programs. The House Committee on Education and the Workforce's approved bill would require adult recipients to work 40 hours per week, an increase of 10 hours over current law. It would mandate that at least 24 hours per week be devoted to "direct" work activities, such as private or public employment, on-the-job training or supervised community service. The remaining hours could be education or other training activities. It also could reduce the number of months - from twelve to three, in most cases - that recipients could count vocational education and training as a direct work activity. EXTENSION OF POPULAR TAX CREDITS FOR HIRING CERTAIN WORKERS COULD BE TIED TO KATRINA RELIEF BILLS Congress continued this week debating how to provide resources to areas impacted by recent hurricanes while identifying offsets to minimize the spending on the annual federal deficit. Included among the maze of legislative proposals is an extension of the Work Opportunity Tax Credit (WOTC) and Welfare to Work Tax Credit (WtWTC) both set to expire on December 31 of this year. President Bush on September 23 signed into law the Katrina Emergency Tax Relief Act of 2005 (P.L. 109-73), which among other things allows employers in disaster areas to claim WOTC for two years if they hire individuals who lived in the disaster area prior to the hurricane. This new provision along with the underlying tax credits would expire if Congress fails to act before the end of this year. In past years, Congress delayed approving legislative extensions of the tax credits until the last moment or beyond, often approving retroactive extensions after the deadline passed. This year Congress could include a year-long extension of the two tax credits in a second tax relief bill yet to be introduced. House Committee on Ways and Means Chairman Bill Thomas (R-CA) said this week he has been working on the second tax relief bill and although he would not commit to its introduction next week he said "we're getting close." Senate Finance Committee Ranking Member Max Baucus (D-MT) said he hopes the next tax relief package will include provisions to assist low-income people nationwide, including the WOTC and WtWTC tax credit programs. On a related matter, the magazine Congressional Quarterly Weekly dated October 17 reports that although the WOTC and WtWTC tax credit programs are very popular, there is no evidence to support the credits have helped a single person get a job he or she would not have gotten otherwise. A Congressional Research Service analyst is quoted in the article stating "there are times that employers only knew they could claim the credit after they hired you." The article also focuses on the use of consultants by employers to take advantage of the credits by verifying the eligibility of employees. An estimate cited in the article says of the $427 million in credits projected to be claimed for 2004, consultants may take in $40 million. HOUSE VETERANS' AFFAIRS COMMITTEE EXTENDS PRESIDENT'S NATIONAL HIRE VETERANS COMMITTEE The House Veterans' Affairs Committee yesterday approved legislation (H.R. 3665) that would extend the operation of the President's National Hire Veterans Committee (PNHVC) until December 31, 2006. The PNHVC is established to furnish employers with information on the training and skills of veterans and disabled veterans and facilitate employment of veterans and disabled veterans through participation in America's national labor exchange and other means. The legislation would also reauthorize the Homeless Veterans Reintegration Program for FY 2007 through FY 2009. SECRETARY CHAO UNVEILS NEW PSA ON "HireVetsFirst" During events held at the National Press Club on Thursday, October 20, U.S. Secretary of Labor Elaine L. Chao kicked off Department of Labor plans to enhance protection of employment rights for America's citizen soldiers, strengthen assistance programs for veterans transitioning from military to civilian careers, and encourage private employers to hire veterans. NASWA staff was invited and attended the event. As part of the Labor Department's efforts to support veterans' employment, Secretary Chao and former Senator Bob Dole unveiled a public service announcement (PSA) featuring Senator Dole. The focus of the PSA is to encourage employers to hire veterans and is part of the Department's "HireVetsFirst" campaign, which highlights the valuable skills and experience veterans offer employers. During the ceremony, Secretary Chao signed the Five-Star Statement of Support for the National Guard and Reserve, committing the Department of Labor to support its citizen-soldiers and provide an example to other employers. Chao announced that the department's Veterans' Employment and Training Service (VETS) and the National Committee for Employer Support of the Guard and Reserve (ESGR) have signed a memorandum of understanding to improve their cooperative efforts to protect the jobs and benefits of National Guard and Reserve service members. MINIMUM AND PREVAILAING WAGE DEBATES RENEWED IN CONGRESS An attempt by Senator Edward Kennedy (D-MA) this week to increase the minimum wage by $1.10 was defeated (47-51). Senator Kennedy attempted to attach his minimum wage hike to the FY 2006 transportation spending bill, citing the recent focus on American poverty post-Hurricane Katrina as the main reason. The national minimum wage has stood at $5.15 since 1997. Countering Senator Kennedy's amendment but also unsuccessful in winning approval was an amendment offered by Senator Michael Enzi (R-WY) also to increase the minimum wage by $1.10 but accompanied by tax breaks for small businesses. Senator Enzi argued the Kennedy amendment failed to acknowledge the negative impact such a wage increase would have on small employers. Fireworks could erupt next week when Representative George Miller (D-CA) seeks consideration of a resolution proposing to rescind President Bush's executive order approved on September 7 to suspend provisions of the Davis-Bacon Act (P.L. 88-349) in Gulf Coast areas affected by Hurricane Katrina. The Davis-Bacon Act requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. Representative Miller proposes using a provision in the National Emergencies Act (P.L. 94-412), which allows Congress to rescind a national emergency declaration by the President. Week of October 31, 2005 SENATE APPROVES FY 2006 LABOR PROGRAM SPENDING BILL INCLUDING CUTS TO WORKFORCE SYSTEM The Senate yesterday approved (94-3) its version of the FY 2006 Labor, Health and Human Services (HHS) and Education appropriations bill (H.R. 3010) setting up a Conference Committee with the House. Two amendments that would impact the nation's workforce system were added to the bill during its four-day consideration. The first would restrict states from re-designating local workforce areas and the second would take $125 million from state Unemployment Insurance (UI) and/or Employment Service (ES) operational appropriations for the purpose of assisting individuals who responded to the aftermath of the September 11, 2001 tragedy. Overall, the Senate's Labor, HHS and Education spending bill would cost $604 billion with $141.7 billion of that amount characterized as discretionary spending. Approximately $12 billion of this discretionary pot would fund all U.S. Department of Labor programs with 80 percent going to the Employment and Training Administration (ETA). The bill is the last of thirteen appropriations bills approved by the Senate with just over half of all spending bills signed into law by President Bush. The amendment to restrict states ability to re-designate local areas was offered mid-afternoon yesterday by Senator Enzi (R-WY) and approved by unanimous voice vote. The amendment as initially filed could have adversely impacted the states of Montana, Idaho and Indiana that have most recently worked to streamline their local boards. Senator Enzi was persuaded to alter his amendment by changing the dates after which future efforts to re-designate are not permitted. Senator Enzi's amendment as approved would not permit the Secretary of Labor to withdraw approval for a re-designation from a state that received the approval not later than October 12, 2005. The amendment would prohibit future re-designations until the Workforce Investment Act (WIA) is reauthorized. It is presumed Senator Enzi's amendment was initiated by local-based stakeholder groups including the National Association of Counties (NACO) and National Association of Workforce Boards (NAWB), in attempts to turn back recent re-designations in a number of states. Senator Enzi is the chairman of the Senate Health, Education, Labor and Pensions Committee responsible for reauthorization of WIA. Another amendment added to H.R. 3010 by Senators Clinton (D-NY) and Schumer (D-NY) would take $125 million from the state UI and/or ES grants for administration and appropriate it to a variety of programs aimed at assisting emergency personnel who responded to the aftermath of September 11, 2001 in New York City. The Clinton/Schumer amendment is unclear, but it appears to reduce the distribution grants to states from the federal UI trust fund and appropriate $125 from general revenues. Either way, it is a serious development for the workforce system as it appears to reduce funds available for UI and ES state operations. Senators Clinton and Schumer in an announcement released after the amendments were approved stated, "The Senate agreed today that we owe it to them (first responders) to make sure they have the critical assistance they need and deserve." Further, the release stated "we will work to ensure that this money remains in the final Conference Report when the House and Senate meet, and we look forward to continue working with our colleagues...to get this job done." Under the Clinton/Schumer amendment, it is not clear who has been given authority to determine from what source (UI or ES) the $125 would be taken. As the labor spending bill heads to conference, it appears more likely than previous years that funding for state Re-Employment Service (RES) grants will be eliminated. Both the House and Senate approved bills would cut the $35 million RES grants as requested by the Administration in its FY 2006 Budget request. It also appears likely the Congress will cut the appropriation for the one-stop/America's Labor Market Information System (ALMIS) by approximately 10 percent. The House bill would cut ALMIS by $10 million and the Senate bill would cut the program by $8 million. The House bill would cut WIA programs more than the Senate with combined reductions to the WIA Adult, WIA Dislocated Worker and WIA Youth programs totaling $138 million compared to FY 2005 levels. The Senate bill would cut these WIA programs by only $3 million. Conference negotiations on the spending bill are expected to begin soon, as Congressional leaders have set the week after Thanksgiving for their adjournment goal. The Senate yesterday selected its delegation of conferees to negotiate an agreement including Senators: Specter (R-PA); Cochran (R-MS); Gregg (R-NH); Craig (R-ID); Hutchison (R-TX); Stevens (R-AK); DeWine (R-OH); Shelby (R-AL); Domenici (R-NM); Harkin (D-IA); Inouye (D-HI); Reid (D-NV); Kohl (D-WI); Murray (D-WA); Landrieu (D-LA); Durbin (D-IL); and Byrd (D-WV). The House has yet to appoint its conferees, but is likely to do so next week. Federal government programs continue to operate under a seven-week continuing resolution (CR) through November 18 making it possible Congress might be forced to consider a second stop-gap bill to fund those programs if Congress is unsuccessful in finishing all bills before this date. HOUSE COULD CONSIDER BILL NEXT WEEK CONTAINING EXTENSION OF TAX CREDITS FOR HIRING CERTAIN WORKERS House Committee on Ways and Means Chairman Bill Thomas (R-CA) said yesterday he is ready to bring to the House floor the week of October 31, tax relief legislation that would include extensions of the Work Opportunity Tax Credit (WOTC) and Welfare to Work Tax Credit (WtWTC) both set to expire on December 31 of this year. These tax credits, authorized by the Small Business Job Protection Act of 1996 (P. L. 104-188), encourage employers to hire eight targeted groups of job seekers by reducing employers' federal income tax liability by as much as $2,400 per qualified new worker. President Bush on September 23 signed into law the Katrina Emergency Tax Relief Act of 2005 (P.L. 109-73), which among other things allows employers in disaster areas to claim the WOTC for two years if they hire individuals who lived in the disaster area prior to the hurricane. This new provision along with the underlying tax credits would expire if Congress fails to act before the end of this year. In past years, Congress delayed approving legislative extensions of the tax credits until the last moment or beyond, often approving retroactive extensions after the deadline passed. Although the House may jump start its approval of the tax credits next week, the Senate is lagging. Senate Finance Committee Chairman Charles Grassley (R-IA) has expressed concern some in the Minority Party wish to add language he considers outside the purview of Hurricane Katrina relief. Delays in moving the bill in the Senate could make renewal of the credits a familiar end-of-year proposition. With regards to Hurricane Katrina related assistance, it was reported this week that the Federal Emergency Management Agency (FEMA) has not spent more than $40 billion of $62.3 billion in emergency hurricane relief approved in September. Given this fact and concern over further increases to the federal deficit, it appears unlikely Congress will approve, at least in the short-term, additional supplemental appropriations for hurricane relief. Congress and the White House are focused instead on reprogramming funds already appropriated for hurricane recovery efforts. The White House is expected to submit a budget request to Capitol Hill as early as today that would reprogram some $17 billion in already appropriated funds to other rebuilding needs. BUSH ADMINISTRATION REINSTATES PREVAILING WAGE PAY FOR POST KATRINA PROJECTS President Bush this week reinstated a requirement that federal prevailing wage rates be paid to workers involved on reconstruction projects for Hurricane Katrina recovery. Prevailing wage rates are required under the Davis-Bacon Act (P.L. 88-349), which requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. U.S. Secretary of Labor Elaine Chao in a press release announced, "upon review of current conditions in the declared areas, the Administration will reinstate Davis-Bacon Act provisions effective November 8." Congressman George Miller (D-CA) last week threatened to rescind President Bush's executive order approved on September 7 to suspend provisions of the Davis-Bacon Act by using a little known provision allowing Congress to rescind a national emergency declaration by the President.