July 6, 2009
RE: Federal Bi-Weekly Update For Period Ending July 3, 2009
I. Supreme Court Rules Against City of New Haven
II. House Passes Climate Change Legislation
III. Congress Begins to Move Health Care Legislation
IV. Renewing Federal Surface Transportation Programs
V. President and Lawmakers Talk Immigration Reform
VI. GAO Releases Water Infrastructure Report
Dear Mayor:
Here is the latest news of municipal interest from our Nation’s Capital.
I. Supreme Court Rules Against City of New Haven
On Monday, in a 5-4 decision, in Ricci v New Haven, the Supreme Court held that, if a municipality uses a hiring or promotion test, it has to accept the test's results - unless it has "strong evidence" the test was flawed and improperly favored a particular group. The case involved a challenge by a group of largely white firefighters who argued they were unfairly denied promotions because of their race, after the city decided not to certify the results of a promotions exam in order to avoid a charge of discrimination from a group of black firefighters who did not score as high on the test. In rejecting New Haven's decision to discard the test, the Court held that the "city could be liable for disparate-impact discrimination [against the black firefighters] only if the examinations were not job related'' or the city failed to use a less discriminatory alternative. Writing for the majority, Justice Anthony Kennedy said, ''We conclude that there is no strong basis in evidence to establish that the test was deficient in either of these respects.'' NLC participated as amicus curiae in the case supporting New Haven. To view the Court's decision, go to http://www.supremecourtus.gov/opinions/08pdf/07-1428.pdf?utm_source=delivra&utm_medium=email&utm_campaign=frupdate
II. House Passes Climate Change Legislation
Last week, the House narrowly passed comprehensive climate change and energy reform legislation, the American Clean Energy and Security Act of 2009 (H.R. 2454), by a vote of 219-212. Eight Republicans joined 211 Democrats in approving the legislation to establish a "cap-and-trade" system to reduce the amount of greenhouse gases in the atmosphere by 17 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050. Forty-four Democrats voted against the bill. To view the final vote tally, go to http://clerk.house.gov/evs/2009/roll477.xml?utm_source=delivra&utm_medium=email&utm_campaign=frupdate .
NLC supported the purposes of the House bill, which are to "create clean energy jobs, achieve energy independence, and reduce global warming pollution and transition to a clean energy economy" but called on the bill's sponsors to go further in assisting local governments in efforts to reduce greenhouse gas emissions and adapt to the potentially unavoidable effects of climate change. To view NLC's letter to the House, go to http://www.nlc.org/ASSETS/3185C180B1F74C16BE5C33A5C4658619/House%20climate%20change%20letter%2006%2019%2009.pdf?utm_source=delivra&utm_medium=email&utm_campaign=frupdate. NLC will continue to push for these changes in climate change legislation pending in the Senate, where floor action is expected in the fall.
III. Congress Begins to Move Health Care Legislation
Congressional leaders continue to lay the groundwork for passing health care reform legislation in the fall. In the Senate, there are two committees of jurisdiction: Finance, and Health, Education, Labor, and Pensions (HELP). Senate Finance Chair Max Baucus continues to seek bi-partisan consensus on a draft bill, including how to pay for what is estimated to cost $1 trillion over ten years and whether to include a public health plan option. The Senate Finance Committee bill is expected to be introduced next week.
Last week, the HELP Committee completed deliberations over a draft bill called the "Affordable Health Choices Act," which Senators Edward M. Kennedy and Christopher Dodd are expected to formally introduce as soon as the Senate returns from its July 4 recess. Among the key elements in that bill are: (1) health care for all Americans with an emphasis on wellness and prevention; (2) a public health plan option; (3) maintenance of the current employer-based health care system; and (4) a provision that all health insurance plans meet federally-established minimum coverage requirements.
In the House, three committees with jurisdiction over health care reform, the Committees on Education and Labor, Ways and Means, and Energy and Commerce, have released a draft bill that is now the subject of hearings, deliberations and final review.
Among the highlights of the House bill are: (1) health care for all Americans, including a mandate that all individuals must carry health insurance; (2) maintenance of the current employer-based health care system; (3) a public plan option; (4) and a national exchange for the purchase of health insurance by individuals and smaller companies. To view a summary of the House draft, go to
http://www.majorityleader.gov/docUploads/QualityAffordableHealthCare062409.pdf?utm_source=delivra&utm_medium=email&utm_campaign=frupdate
The House bill is expected to be formally introduced in early July.
IV. Renewing Federal Surface Transportation Programs
House and Senate leaders moved in different directions as they began the long journey to reauthorize federal transportation programs, which expire on September 30.
In the House, a transportation subcommittee led by Rep. Peter DeFazio approved a draft six year, $500 billion transportation package by voice vote without many specifics, including how to pay for the program. In addition to almost doubling current federal transportation spending, the House draft would consolidate federal transportation programs, create unified offices within the Department of Transportation to coordinate transportation and housing projects, and tie federal transportation funding to performance benchmarks. The full House Transportation and Infrastructure Committee will take up the bill, which does not have a number assigned yet, when Congress returns in July.
In the Senate, Environment and Public Works Committee Chair Barbara Boxer took a different approach, supporting the Administration's proposal to adopt an 18-month short-term reauthorization, using the time to make substantial changes in the current program and fix the immediate gap in Highway Trust Fund. The Administration has said it does not want to increase taxes to support surface transportation programs at this time, which would be necessary to fund the House bill.
Given the current congressional agenda and calendar, Congress is unlikely to be able to reach consensus on a new highway bill and a way to fund it before the current law expires.
V. President and Lawmakers Talk Immigration Reform
Last week, lawmakers met with President Obama to discuss the need to enact comprehensive immigration reform in the 111th Congress and possible strategies for working together. The meeting included supporters and opponents of previous legislative efforts and focused on the legislative process for moving a bill through Congress. It was agreed that the debate will begin in the appropriate House and Senate subcommittees and that Department of Homeland Security Secretary Janet Napolitano will lead a working group to discuss the components of a reform measure. Debate could begin at the end of this year or early next year.
In remarks last week, Sen. Charles Schumer, Chair of the Immigration Reform Subcommittee of the Senate Judiciary Committee, laid out seven key reform principles for immigration reform: (1) curtailing of future illegal immigration; (2) gaining operational control of our border; (3) adopting a biometric-based employer verification system; (4) requiring undocumented immigrants to register and submit to a process of converting to legal status; (5) creating more room for family-based and employment-based immigration by reducing illegal immigration; (6) encouraging the world's best and brightest to come here, while discouraging businesses from using foreigners to replace capable American workers; (7) creating a manageable, controlled legal flow of unskilled immigrants who can be absorbed by our economy.
VI. GAO Releases Water Infrastructure Report
On Monday, the U.S. Government Accountability Office (GAO) released a report on the issues that need to be considered when designing a clean water trust fund to fund the gap between future needs and current spending for wastewater infrastructure. The U.S. Environmental Protection Agency estimates the gap to be between $150 billion and $400 billion over the next decade. The main issues that GAO identifies in the report are how a trust fund should be administered and used, what type of financial assistance should be provided, and what activities should be eligible to receive funding from a trust fund.
The funding options identified in the report include excise taxes on products that may contribute to the wastewater stream, a tax on corporate income, a water use tax, and an industrial discharge tax. To view the GAO report, go to http://www.gao.gov/new.items/d09657.pdf?tm_soruce=delivra&utm_medium=email&utm_campaign=frupdate
Rep. Earl Blumenauer is expected to introduce a bill to establish a clean water trust fund soon, with a hearing scheduled for later this month. NLC is reviewing the report and recommendations.
Again, we want to thank the National League of Cities’ Federal Relations staff for their continuing efforts to provide us with expert analysis and timely news. If you have any questions please contact Jon Moran at 609-695-3481, ext. 121.
Very truly yours,
William G. Dressel, Jr.
Executive Director
