One More Thing About Davis-Bacon

Oct 28, 2005 by Guest Blogger

One more thing about the White House's decision to rescind the waiver of Davis-Bacon Act prevailing wage requirements, per CNN's Lou Dobbs Tonight: The reinstatement will not change the wages of those already working under contract. So far, the federal government has awarded $50 million in relief contracts. But it should make the contracting process from here on out more transparent and ensure displaced workers are first in line to rebuild their communities.

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Hard Labor After Katrina

Oct 28, 2005 by Guest Blogger

Times apparently aren't good for workers in the post-Katrina aftermath. Most notably, of course, the White House waived Davis-Bacon Act prevailing wage requirements for contractors, until the political pressure became too much to bear. Almost immediately after the hurricane hit, the Bush administration also announced a slew of waivers of regulatory protections, including waiver of the already atrocious rules for the maximum number of hours trucking companies can force their drivers to work without rest. (That waiver has now expired.)

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Senate Passes Final Spending Bill

Oct 28, 2005 by Adam Hughes*

The Senate wrapped up work on their final spending bill yesterday. The $145.7 billion HHS appropriations bill is headed to conference with the House, after the Senate added $8 billion in emergency funds to help prepare for a potential avian flu outbreak. The Senate also worked to scale back food stamp cuts in this bill, and included an additional $50 million in food stamp benefits for hurricane victims.

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FEMA To Give Money to Religous Charity for Katrina Services

Oct 28, 2005 by Guest Blogger

From the New York Times: The Federal Emergency Management Agency plans to grant $66 million, paid for with donations from foreign governments, to a religious charity to expand services for 100,000 families displaced by Katrina.

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Additional Katrina Spending Bill Expected Friday

Oct 27, 2005 by Adam Hughes*

The Bush administration is putting the finishing touches on another Katrina spending relief bill tonight and it is expected on Capitol Hill tomorrow. Early reports indicate the bill will propose to use up to $17 billion in already appropriated funds to begin reconstruction of federal facilities damanged by the hurricanes. Although there is still a substantial amount of the previously appropriated $62 billion in relief funds left to be spent, federal rules prohibit that money from being spent on other projects, such as repairs of military bases, highways, and other federal infrastructure. The Associated Press reports the shift in funds would most likely be used for "repairs to Interstate 10 in Mississippi and Louisiana and Keesler Air Force Base in Mississippi." AP: White House Readies New Hurricane Request

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Statement on Passage in the House of the Federal Housing Finance Reform Act

OMB Watch is deeply disappointed that the House of Representatives has passed legislation that unfairly restricts the advocacy voice and civic participation of nonprofit organizations.

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Senate Rejects Increased Funding For LIHEAP

Oct 27, 2005 by Adam Hughes*

Two proposals to boost LIHEAP funding before what promises to be a very expensive winter for many families failed yesterday in the Senate. Sens. Jack Reed (D-RI) and Susan Collins (R-ME) pushed for a proposal which would have increased FY 2006 LIHEAP funding from $2.2 billion to $5.1 billion. The amendment only received 54 votes, and needed 60 for passage because procedural rules in the Senate required the extra spending be coupled with equivalent spending cuts elsewhere. Additionally, Sen. Judd Gregg (R-NH) put forward an amendment proposing to increase funding from $2.2 billion to $3.5 billion. The amendment offset the spending with an across-the-board cut of almost 1 percent to all programs included in the Labor-HHS appropriations bill. The amendment failed 53-46. Washington Post: Bid For More Home Heating Aid Fails in Senate

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CBO Estimates Cost of Finance Cmte's Reconciliation Plan

Oct 27, 2005 by Guest Blogger

The Congressional Budget Office has prepared a report estimating the budgetary effects of the Finance Committee's reconciliation recommendations. The CBO found that, overall, the committee's recommendations would generate $819 million worth of "savings" in 2006. In 2007, however, because they suggest delaying Medicare payments one year, the proposal would actually end up costing over $4.5 billion. The net cuts from 2006-2010 are estimated to be $10 billion. This is an impressive amount for lawmakers who are particularly worried about excessive government spending; however the amount is dwarfed by the amount the government is spending for the 2001 and 2003 tax cuts this year alone: $225 billion. It seems like it would make more sense to repeal some of this cost in looking for "savings," in government expenditures, rather than cut corners in programs that serve millions of people.

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Wyden Offers Tax Reform Bill

Oct 27, 2005 by Guest Blogger

Sen. Ron Wyden (D-OR) is offering up a tax reform bill today which is intended to give equal tax treatment to people whose earnings are gained via work or wealth. It would also, according to Wyden, reduce the deficit by $100 billion over the next five years. The plan would boost the tax on capital gains and dividends, which is currently 15 percent. It would also have three rates of income taxation -- 15 percent, 25 percent, and 35 percent. To promote simpicity it would require only a single-page tax return. Wyden said yesterday, "When you make the tax code simpler, flatter, and fairer, you free up money for real tax relief for middle-class people that are hurting." The bill coincides with the the near completion of the President's Advisory Committee on Federal Tax Reform's work.

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Disconnected From Reality

Oct 27, 2005 by Guest Blogger

With reconciliation moving full steam ahead, Sen. Kent Conrad (D-ND) of the finance committee commented, "I have never felt that a budget going through the Congress of the United States is more disconnected from reality than this budget." It truly is disconnected -- the Senate Budget Committee yesterday approved a spending blueprint which would cut $39 billion from mandatory programs over the next five years. Overall the bill would actually produce $71 billion in gross savings, but would put about $32 billion of those savings back into new spending. The legislation will likely be considered on the House floor next week. House Republican leaders are currently still working to put together 218 votes for support for a larger $50 billion plan. Some Republicans, including Ways and Means Committee Chairman Bill Thomas (R-CA) have privately expressed frustration to House leaders over the increased spending cut targets. Ways and Means, for example, is now being pressured to cut $8 billion, which is up from $1 billion in the original FY06 budget resolution.

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