Legislative Update – August 2011
Congratulations to
Ms. Hersman and Brother Verna!
Congratulations are in order for Deborah A.P. Hersman who was confirmed by the U.S. Senate on
Congratulations also go out to Vince Verna who has been
named as the new BLET Director of Regulatory Affairs, effective
Budget Control Act of
2011
The House and Senate passed the Budget Control Act of 2011
on August 2 and it was signed into law by President Obama on the same day. The law involves the introduction of
several complex mechanisms, such as creation of the Congressional Joint Select
Committee on Deficit Reduction (sometimes called the "super
committee") and options for a Balanced Budget Amendment.1
Wikipedia provided the following
outline of the provisions of this Act:
Debt limit:
·
The debt limit is increased by $400 billion
immediately.[2]
·
The President may request a further increase
of $500 billion, which is subject to a congressional motion of disapproval
which the President may veto, in which case a two-thirds majority in Congress
would be needed to override the veto. This has been called the 'McConnell
mechanism' after the Senate Minority Leader, who first suggested it.[3]
·
The President may request a final increase of
$1.2–1.5 trillion, subject to the same disapproval procedure. The exact amount
depends on the amount of cuts in the "super committee" plan if it
passes Congress, and whether a Balanced Budget Amendment has been passed.
Deficit reduction:
·
Spending is reduced more than the increase in
the the debt limit. No increases in revenue above current law are included in
the bill.
·
The bill directly specifies $917 billion of
cuts over 10 years in exchange the initial debt limit increase of $900 billion.
This is the first installment ("tranche") of cuts. $21 billion of
this will be applied in the FY2012 budget.[3]
·
Additionally, the agreement establishes the Joint Select Committee on Deficit
Reduction, sometimes called the "super committee",[1]
that would produce debt reduction legislation by November 23, 2011, that would
be immune from amendments or filibuster (similar to the Base Realignment and Closure).[3][4]
The goal of the legislation is to cut at least $1.5 trillion over the coming 10
years and be passed by December 23, 2011.[4]
Projected revenue from the committee's legislation must not exceed the revenue budgeting baseline produced by current law.
(Current law has the Bush tax cuts expiring at the end of 2012.) The committee
would have 12 members, 6 from each party.
·
The agreement specifies an incentive for
Congress to act. If Congress fails to produce a deficit reduction bill with at
least $1.2 trillion in cuts, then Congress can grant a $1.2 trillion increase
in the debt ceiling but this would trigger across-the-board cuts
("sequestration") of spending equally split between security and
non-security programs.[3]
The across-the-board cuts would apply to mandatory and discretionary spending
in the years 2013 to 2021 and be in an amount equal to the difference between
$1.2 trillion and the amount of deficit reduction enacted from the joint
committee. The sequestration mechanism is the same as the Balanced Budget Act of 1997. There are
exemptions—across the board cuts would apply to Medicare providers, but not to
Social Security, Medicaid, Medicare beneficiaries, civil and military employee
pay, or veterans.
Balanced Budget Amendment:
Congress must vote on a Balanced Budget Amendment between October
1, 2011, and the end of 2011, but is not required to pass it and send it to the
states in order for the debt limit increases to occur (as was the case in the
previous Cut, Cap and Balance Act, which was not
enacted).[3]
Other provisions:
·
Pell grant
funding is increased, but other financial aid is cut. Graduate and professional
students will no longer be eligible for interest subsidized loans.[5]
Repayment incentives will also be done away with after July 1, 2012.
1. ^ a b c "Debt-Ceiling Deal: President Obama Signs Bill as Next
Fight Looms". ABC News. August 2, 2011. http://abcnews.go.com/Politics/debt-ceiling-deal-president-obama-signs-bill-fight-looms/story?id=14213050.
2. ^ a b c Yeh,
Richard; Hamilton, Alec (August 3, 2011). "Explainer: The Debt Deal - What Happens Next and
What's on the Chopping Block?". 3. WNYC. http://www.wnyc.org/articles/its-free-country/2011/aug/03/debt-deal-so-far/.
3. ^ a b c d e f g Lisa
Mascaro; Kathleen Hennessey (July 31, 2011). "U.S. leaders strike debt deal to avoid default".
Los Angeles Times. http://www.latimes.com/news/nationworld/nation/la-na-debt-talks-20110801,0,3461991.story.
4. ^ a b c DeFrank,
Thomas (July 31, 2011). "President Obama says Republican, Dem leaders have
reached agreement with him to raise debt ceiling". New York Daily News. http://www.nydailynews.com/news/politics/2011/07/31/2011-07-31_president_obama_says_republican_dem_leaders_have_reached_agreement_with_him_to_r.html#ixzz1TlenyDGT.
5. Levy, Gabrielle (August 1, 2011). "Debt-limit deal increases funding for Pell
Grants". The Sacramento Bee.
Medill
News Service. http://www.sacbee.com/2011/08/01/3809725/debt-limit-deal-increases-funding.html.
We are grateful that Congress did not cut Social Security,
Medicare, and Long-term care in the first round of deficit reduction. Going
forward, we must remain vigilant in our efforts to protect the health and
retirement security of our seniors and future retirees.
BLET in Strong Opposition
to Privatizing Amtrak
Following introduction of the Competition for Intercity
Passenger Rail in America Act by Rep. John Mica (R-FL), and Rep. Bill Shuster
(R-PA) on June 15, 2011 (see July 2011
update), BLET National Vice President Stephen Bruno testified on June 20 at
a U.S. Senate hearing about ways to fund much-needed national infrastructure
improvements. At the hearing, entitled “Building American Transportation
Infrastructure Through Innovative Funding,” Brother
Bruno stated that private funding must be used to supplement, not replace,
current sources of public funding. He also stated that “American labor must continue to have
the same protections they are entitled to and have fought so hard to acquire.”
He pointed out that the Mica/Shuster plan would saddle Amtrak with all its debt
while removing the Northeast Corridor, which is its biggest asset. He eloquently
stated that “[t]his would endanger passenger and commuter rail throughout the
country, and it would cause significant job losses among Amtrak employees. It
places corporate shareholder interests ahead of the interests of the general
public. The Mica/Shuster proposal invites corporate locusts to swarm in,
acquire, and leverage the profitable assets and leaves nothing but a rotting
husk.”
BLET
National President Dennis Pierce expressed to members of the U.S. House of
Representatives in a letter dated June 20, 2011, that the BLET completely
opposes the Republican plan to privatize and dismantle Amtrak. The Mica/Shuster
plan would jeopardize the jobs of 20,000 Amtrak employees and would undermine
the stability of the Railroad Retirement system, thereby hurting all railroad
workers.
A
copy of Vice President Bruno’s complete testimony can be found at: http://www.ble-t.org/pr/pdf/Bruno_7.20.11_Testimony.pdf.
A copy of President Pierce’s letter can be found at www.ble-t.org/pr/pdf/mica_proposal.pdf.
30 Million Amtrak
Rail Passengers… WOW!!!
Amtrak has projected that its annual ridership will this
year, for the first time ever, exceed 30 million passengers in the fiscal year
that ends on September 30. The projection is based on strong June ridership
numbers and expected ticket sales for July-September. The railroad has wisely
invested the federal funding it has received to improve infrastructure and
equipment, making it a more attractive means of travel in these times of high
gasoline prices. So far this year, ridership is up 6.4 percent. Continued
investment in Amtrak and passenger rail in general will support continued
growth. Let’s keep reminding our congressional leaders of Amtrak’s ongoing success
and encourage them to continue funding this important public transportation
option in our country.