***Weekly Update***
From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office
November 13, 2006
CONGRESSIONAL ELECTIONS
• A new Congress is elected in each even-numbered year (2006) and convenes at the start of each odd-numbered year (2007). The majority party controls the legislative direction of key issues and sets committee ratios and budgets. The newly elected 110th Congress will convene in January 2007. However, lawmakers elected to serve in the 110th Congress will come to Washington during the week of November 13, 2006, to organize and select their party leaders.
• In the House of Representatives, a change in the party affiliation of fifteen House members was needed to shift the control of the House from a Republican to a Democratic majority. As a result of the mid-term elections, a projected net gain of at least twenty-nine House seats, have gone to Democrats. House district races in Connecticut, Georgia, Louisiana, New Mexico, Ohio, Texas, Washington and Wyoming are still undecided. This shift in party leadership in the House ends twelve years of Republican majority.
• In terms of key House Committees, it is expected that Representative David Obey (D-WI) will take over the reins of the House Appropriations Committee. It is probable the House Education and Workforce Committee's longtime ranking Democrat, Representative George Miller (D-CA), will take the committee gavel while Representative Howard "Buck" McKeon (R-CA), who currently chairs the committee, will move to the ranking minority spot. Representative Charles Rangel, (D-NY) is also expected to assume the chairmanship of the House Ways and Means Committee. The ratio of Ways and Means committee membership is also expected to change.
• Of the thirty-three (33) Senate races in the mid-term election, Democrats successfully defended 18 seats and are expected to have a net gain of six seats to achieve the voting majority of 51. Senate races in Missouri, Montana, Ohio, Pennsylvania, Rhode Island and Virginia were pivotal to a change in majority leadership in the Senate. While Democrats are now a majority of one, they are far from the critical 60 votes Senators acknowledge is necessary to pass major legislation.
• Senator Robert Byrd (D-WV) is expected to again serve as chair of the Senate Appropriations Committee. The chairmanship of Senate Health, Education, Labor and Pensions Committee could go to Senator Kennedy (D-MA). Senator Enzi (R-WY) probably will be the ranking minority member. An aide to Senator Enzi indicated that next year, the WIA Reauthorization bill will not include the contentious faith-based language, giving the legislation a greater chance of being enacted. The WIA bill had been stalled by House Republicans who insisted on inserting language that would permit employers to discriminate in hiring based on a job applicant's religion. This has been referred to as the "faith-based' provision.
NEW GOVERNORS IN ELEVEN STATES
• Governorships in thirty-six states were contested in the mid-term election.
• New Governors of a different party were elected in: Arkansas (D); Colorado (D); Maryland (D); Massachusetts (D); New York (D); and, Ohio (D). New Governors of the same party as their predecessor were elected in: Alaska (R); Florida (R); Idaho (R); Iowa (D); and, Nevada (R).
• Twenty-five incumbent Governors were re-elected in: Alabama (R); Arizona (D); California (R); Connecticut (R); Georgia (R); Hawaii (R); Illinois (D); Kansas (D); Maine (D); Michigan (D); Minnesota (R); Nebraska (R); New Hampshire (D); New Mexico (D); Oklahoma (D); Oregon (D); Pennsylvania (D); Rhode Island (R); South Carolina (R); South Dakota (R); Tennessee (D); Texas (R); Vermont (R); Wisconsin (D); and, Wyoming (D).
• The balance of Governorships is now twenty-eight Democrat and twenty-two Republican.
ETA RELEASES NEW PROPOSED WRIS AGREEMENT
• The Employment and Training Administration has forwarded via email to all state administrators a new proposed Wage Record Interchange System (WRIS) Agreement.
November 21, 2006
CONGRESS APPROVES SECOND STOP-GAP SPENDING BILL THROUGH DECEMBER 8
• The Congress this week approved a second continuing resolution (CR) to fund fiscal year 2007 federal government operations through December 8, giving it three more weeks to complete unfinished spending bills, including the one that funds the workforce system. The CR funds workforce programs at their fiscal year 2006 levels. Thus far, Congress has approved two of its fiscal year 2007 spending bills, Defense and Homeland Security, leaving eleven unfinished bills. Congress has not resolved how and when it will approve remaining spending bills, particularly the fiscal year 2007 Labor, Health and Human Services (HHS) and Education bill, typically the most contentious of all spending bills because of its size and sensitivity over the programs it funds. Negotiations in the Senate broke down this week over resolving the spending bill for Agriculture, a bill that was supposed to be quickly ratified. Further delay on approving spending bills increases the likelihood a long-term CR into next year will be necessary.
• Another option to a long-term CR floated on Capitol Hill to complete unfinished spending bills includes approval of an "omnibus bill" that would consolidate many bills into a single legislative package. Doing so would streamline the legislative approval process and make it easier to attain the necessary votes because Congressional Members have a difficult time voting against large inclusive bills containing programs they support even if it is not perfect. Some currently in the Minority oppose the idea of a long-term CR postponing final fiscal year 2007 decision-making until the next Congress meets because it would be added to the looming tasks of considering the fiscal year 2008 Budget early in the year and the likelihood of another supplemental spending bill to fund the wars in Iraq and Afghanistan. However, a long-term CR could favor the workforce system because it would at least guarantee funding at fiscal year 2006 levels and postpone the cuts proposed in the fiscal year 2007 Labor, HHS and Education bills approved by the House and Senate Appropriations Committees.
• The most significant threats to workforce system funding are in the House spending bill (H.R. 5647) including a $325 million rescission to Workforce Investment Act (WIA) programs and a halving (-$42 million) of spending for the One-Stop/Labor Market Information programs. Though better than the House bill overall, the Senate bill (S. 3708) includes a $64 million cut to the WIA Adult program and would cut the One-Stop/LMI program by $19 million. Both the House and Senate spending bills would cut the Employment Service (ES) appropriation by $26 million from its fiscal year 2006 level. Some workforce system advocates believe the cuts included in the House bill could be approved because of budget caps in place restricting total funding under the bill. Senators Arlen Specter (R-PA) and Tom Harkin (D-IA) have been working along with House moderates to increase the total amount of available funding under the bill. Although the effort in the House and Senate has broad bipartisan support, it is unclear if this support will translate to an increase in available funds.
HELP COMMITTEE PRIORITIES
• For the 110th Congress, which begins on January 4, 2007, the new Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, will be Senator Edward Kennedy, (D-MA). In a floor speech yesterday, Senator Kennedy named the following as the HELP Committee's top priorities:
1. Raise the minimum wage from$5.15 to $7.25 per hour;
2. Remove the barriers to stem cell research;
3. Increase Pell grants from $4,050 to $5,100;
4. Make student loans less expensive by capping loan payments, cutting student loan interest rates and reforming the student loan program; and,
5. Reduce the costs of health care.
• Senator Kennedy said, "These are our top priorities for the new year, but that they are not the only priorities. He went on to mention numerous items including, "Workers need opportunities to improve their skills through job training programs."
• A Kennedy spokeswoman said all of the issues the Senator mentioned in his speech are equally important. She said Kennedy highlighted several items as "top priorities" because they are" items for quick action."
HELP COMMITTEE MAJORITY MEMBERS NAMED
• Returning Senate Health, Education, Labor and Pensions (HELP) Committee members are Chair Edward Kennedy, (D-MA); Senators Christopher Dodd, (D-CT); Tom Harkin, (D-IA); Barbara Mikulski, (D-MD); Jeff Bingaman, (D-NM); Patty Murray, (D-WA); Jack Reed, (D-RI); and Hillary Rodham Clinton, (D-NY).
• The new majority members are: Senator Barack Obama, (D-IL) and Senator-elect Sherrod Brown, (D-OH). Senator-elect Bernard Sanders (I-VT) will also serve on the HELP Committee.
• Election of the new Minority Senate Committee membership is occurring today.
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December 11, 2006
CONGRESS SET TO APPROVE STOPGAP SPENDING BILL TO FUND WORKFORCE PROGRAMS AT FY 2006 LEVELS THROUGH FEBRUARY 15
• The House and Senate today are scheduled to consider a stopgap spending bill to fund federal government operations further into fiscal year 2007 including workforce programs through February 15. The current stopgap spending bill, often referred to as a continuing resolution (CR) expires tonight at midnight. The Congress has had to approve stopgap spending bills to fund government operations because it has been unable to approve eleven of thirteen spending bills it considers annually. The Labor, Health and Human Services and Education spending bill, which sets spending limits for Workforce Investment Act (WIA) programs, administration of the Unemployment Insurance (UI) system, Labor Market Information (LMI) and Veterans' Employment and Training Service (VETS) programs among others, has languished since it was approved by the House and Senate Appropriations Committees months ago.
• Fiscal year 2007 spending levels approved by the new 110th Congress next year are difficult to predict, but given the change in leadership in both chambers on Capitol Hill, it is unlikely the incoming Majority will adopt funding levels advanced by the current Congress. While this likely means the $325 million rescission proposed in the House Labor, HHS and Education spending bill will not be adopted, the workforce system must still work to educate the incoming Majorities on the value of the workforce system. A challenge confronting the new Congress is to fund workforce programs adequately given advocates in the health and education communities fighting for an ever larger slice of available funds. Further, the narrow majorities in both the House and Senate will make it difficult for the new leaders to move legislation unilaterally without at least some bi-partisan support. NASWA will report on the forthcoming approval of the CR early next week.
WOTC AND WtWTC EXTENSIONS INCLUDED IN BROAD TAX CREDIT BILL WITH UNCERTAIN FUTURE
• The House and Senate will today or tomorrow consider legislation that includes extensions of the Work Opportunity (WOTC) and Welfare-to-Work (WtWTC) tax credits. The legislative authority for the popular programs expired on December 31, 2005, but states have continued to accept and process WOTC and WtWTC certification requests for employer hires made between January 1, 2006 and September 30, 2006 as instructed under Training and Employment Guidance Letter (TEGL) 14-05 issued by the Employment and Training Administration (ETA). States have since been instructed by ETA to continue following procedures established in TEGL 14-05 to administer the program beyond September 30, 2006, though renewed guidance has not yet been issued. The fate of the WOTC and WtWTC program extensions is tied to more contentious legislation on trade that has some Members of Congress expressing their disapproval. Leaders of the House and Senate are planning to attach the tax extension legislation to legislation dealing with trade issues to streamline the approval process given this week is the last of the 109th Congress.
• If approved as written currently in section 105 of the House tax bill (H.R. 6408), the WOTC and WtWTC programs would be extended retroactively for qualified individuals who begin work for an employer after December 31, 2005 and before January 1, 2007. The legislation would then extend the tax credits an additional year for hires after December 31, 2006 and before January 1, 2008 while amending the programs by combining them. Additional amendments to the law would repeal the requirement that a qualified ex-felon be an individual certified as a member of an economically disadvantaged family, raise the age limit for the food stamp recipient category to include individuals aged 18 up to 40 on the hiring date, amend qualified wages and the calculation of the credit for the newly combined programs beginning in 2007. The Congressional Budget Office (CBO) estimates the extension of the tax credits would cost the federal government $979 million over five years.
NOVEMBER UNEMPLOYMENT RATE UNCHANGED
The Bureau of Labor Statistics reported today the unemployment rate was essentially unchanged in November at 4.5 percent. Over the year, this measure has declined from 5.0 percent. Total nonfarm payroll employment rose by 132,000 in November. This followed increases of 203,000 in September and 79,000 in October. So far this year, payroll employment has grown by an average of 149,000 per month. In November, employment rose in mining and in several service-providing industries including professional and business services, food services, and health care. Employment declined in construction and continued to trend downward in manufacturing.
December 18, 2006
CONGRESS APPROVES STOPGAP SPENDING BILL TO FUND WORKFORCE PROGRAMS AT FY 2006 LEVELS THROUGH FEBRUARY 15
• The House and Senate late last week approved a stopgap spending bill (H.J. Res. 102) to continue funding federal government operations including workforce programs through February 15, 2007. The short-term spending bill funds workforce programs at their fiscal year 2006 levels through mid-February. The Congress has had to approve stopgap spending bills to fund government operations because it has been unable to approve most of the spending bills it considers annually. The Labor, Health and Human Services and Education spending bill, which sets spending limits for Workforce Investment Act (WIA) programs, administration of the Unemployment Insurance (UI) system, Labor Market Information (LMI) and Veterans' Employment and Training Service (VETS) programs among others, has languished since it was approved by the House and Senate Appropriations Committees months ago.
CONGRESS EXTENDS AND AMENDS WOTC AND WtWTC PROGRAMS; PRESIDENT BUSH EXPECTED TO SIGN SOON
• Congress late last week approved a broad package of tax credits and trade-related legislation (H.R. 4111) including a provision to extend the Work Opportunity (WOTC) and Welfare-to-Work (WtWTC) tax credits before adjourning for the year. President Bush is expected to sign the legislation into law before the New Year. The WOTC and WtWTC provision extends the credits for an additional two years, to include wages paid or incurred for individuals beginning work after December 31, 2005, and before January 1, 2008. For wages paid or incurred for individuals who begin work for the employer after December 31, 2006, the provision combines the two credits, expands eligibility for WOTC by raising the age ceiling for food stamp recipients from 25 to 40, eliminates the WOTC family income restrictions for ex-felons, and extends the paperwork filing deadline from 21 to 28 days. The estimated cost to the Federal Treasury, in terms of lost revenue, is $979 million over five years.
CONGRESS APPROVES LEGISLATION REQUIRING USDOL ESTABLISH REGULATIONS ON VETERANS' PRIORITY OF SERVICE
• Congress late last week approved legislation (S. 3421 ) to require the U.S. Secretary of Labor develop regulations spelling out the prioritized delivery of workforce system services for veterans as first required under the Jobs for Veterans' Act (P.L. 107-288) approved on November 7, 2002. The bill is expected to be signed by President Bush before the beginning of the New Year. The approved legislation was pared significantly and does not include the minimum qualification requirements originally proposed. The approved legislation bears little resemblance from its original form as many of the changes made over the past year to the bill the result of input from NASWA members and the USDOL Veterans' Employment and Training Service (VETS).
• Included in the approved bill is language requiring training of DVOPs and LVERs by the National Veterans' Training Institute (NVTI) within three years of their assignment. It clarifies rules for part-time employment of DVOPs and LVERs to reflect the current interpretation of the Jobs for Veterans' Act. The bill authorizes the Assistant Secretary of VETS to permit incentive awards for employment service offices and individuals, potentially broadening availability of the awards in some states.
INCOMING CONGRESSIONAL MAJORITY SAYS THEY WILL FINISH LEFTOVER FY 2007 SPENDING BILLS THROUGH LEVEL FUNDING
• Incoming leaders of the new House and Senate Majorities said this week that they will likely complete eleven of the thirteen unfinished spending bills by approving the current continuing resolution (CR) through the remainder of fiscal year 2007. The current CR (see first article above) funds the workforce system at fiscal year 2006 levels through February 15, 2007 giving the new Congress a month and a half to determine funding levels for the remainder of the fiscal year ending on September 30, 2007. Level-funding at fiscal year 2006 levels for the workforce system would be a mild victory given the funding cuts proposed in the House and Senate spending bills, including the proposed $325 million rescission of Workforce Investment Act (WIA) funding and significant cuts to Labor Market Information (LMI) programs. Level funding for health and education programs would be viewed as a major defeat as they are accustomed to annual increases in most cases. Incoming leaders of the new 110th Congress said they would seek out ways to fund some programs at more than fiscal year 2006 levels where possible, but the budget caps established by the previous
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