NACo Legislative Bulletin

Executive Director: Larry Naake

Legislative Director: Edwin Rosado

February 3, 2006

NACo Urges Support for Senate Meth Cleanup Bill-Action Needed!
House Narrowly Approves Budget Reconciliation Bill

· Senate Passes Tax Reconciliation Bill

House Leadership Changes Affect Education and Workforce Committee
Patriot Act is Extended Again
NACo to Co-Sponsor Meth Congressional Briefing

NACo Urges Support for Senate Meth Cleanup Bill-Action Needed!

NACo is calling on members to write to their senators in support of the bi-partisan Meth Remediation Research Act of 2005 (S. 2019). The legislation, sponsored by Sens. Gordon Smith (R-Ore.) and Max Baucus (D-Mont.), authorizes the Environmental Protection Agency to establish scientifically based voluntary cleanup standards for former meth lab sites. Currently, there are no national guidelines for local governments and individuals to follow to ensure that a former meth lab is inhabitable. At this time, the bill has two co-sponsors: Sens. Mike DeWine (R-Ohio) and Jim Talent (R-Mo.). A House companion bill was passed at the end of 2005. (Contact: Joe Dunn 202/942-4207 or jdunn@naco.org) [top of page]

House Narrowly Approves Budget Reconciliation Bill

The House voted on February 1 to approve the budget reconciliation bill by a margin of 216-214. Thirteen Republicans crossed party lines to vote against it. Two Republicans, Ernest Istook (Okla.) and Gary Miller (Calif.), plus one Democrat, Earl Blumenauer (Ore.) did not vote. The 13 Republicans who crossed party lines were: Jim Gerlach, (Penn.) Sam Johnson (Texas) , Walter Jones (N.C.), Steven LaTourette (Ohio), Jim Leach (Iowa), John McHugh (N.Y.), Bob Ney (Ohio), Ron Paul (Texas), Jim Ramstad (Minn.), Robert Simmons (Conn.), Christopher Smith (N.J.), John Sweeney (Conn.) and Heather Wilson (N.M.).

Human Services: The bill includes several provisions that will cost states and counties billions of dollars. These include reductions in child support payments, new requirements and penalties in the Temporary Assistance for Needy Families Block Grant (TANF), reductions in allowable expenditures under foster care administrative costs and broad discretion the Secretary of HHS in determining TANF eligible activities and participation. Additionally, state programs that are used as maintenance of effort for TANF must meet the new federal requirements. The penalties will mean a five percent reduction in the TANF grant to those states that do not meet the new requirements. The child support changes were declared an unfunded mandate by the Congressional Budget Office, but that was not enough to dissuade the necessary number of votes. (Contact: Marilina Sanz (202) 942-4260 or msanz@naco.org)

Health Care: The Budget Reconciliation bill will cut over $4 billion in Medicaid spending and over $5 billion in Medicare spending over a five year period. Nearly 1/3 of the Medicaid savings in the bill will come from changes in prescription drug payment policies changing the way in which state Medicaid programs pay pharmacists for prescriptions. Premiums and cost sharing provisions will account for nearly $2 billion in reduced federal spending allowing higher co-payments for non-emergency services provided in an emergency room and increased cost sharing for non-preferred drugs.

The bill also makes premiums and co-payments "enforceable" meaning that providers or pharmacists could deny services if a beneficiary cannot pay. Allowing states flexibility in their benefit packages is expected to save over $1 billion in federal spending. Sates will now be allowed to replace the existing Medicaid benefit package for certain groups with "benchmark" coverage. Federal savings are also achieved through increased penalties on individuals who transfer assets for less than fair market value to qualify for nursing home care.

Other changes included in the bill propose to require; most new Medicaid applicants as well as current beneficiaries to document their citizenship, tighten the definition of what qualifies as Medicaid targeted case management (TCM) and restrict provider taxes on managed care organizations. (Contact: Jennifer Wilson 202-942-4230 or jwiilson@naco.org)

ANWR: The controversial environmental language dealing with opening the Arctic National Wildlife Refuge to drilling, allowed mining companies to buy public lands, and encouraged outer continental shelf exploration and oil shale development, had been stripped from the reconciliation bill prior to the vote. (Contact: Paul Beddoe 202-942-4234 or pbeddoe@naco.org)

Environment: Farm conservation programs were cut in the reconciliation bill. The Conservation Security Program (CSP) was given $1.95 billion for the next five years, with a cap of $5.65 billion total between 2006 and 2015. The CSP is a new program under the Agriculture Department's umbrella that pays farmers to make environmental improvements on working lands.

Another cut program includes the Environmental Quality Incentives Program (EQIP), its' funding is $1.27 billion for fiscal years 2007 through 2009 and $1.3 billion in fiscal year 2010. This is a voluntary conservation program for farmers and ranchers offering incentives for certain conservation practices on their lands. (Contact: Julie Ufner 202-942-4269 or jufner@naco.org)

DTV transition set for 2009: The public safety community that wants to use the 700 MHz band of spectrum will finally have a definitive date as to when it will be cleared so the U.S. government can grant the spectrum to those communities. Congress approved legislation February 1; that sets February 17, 2009 as the hard deadline for ending U.S. analog broadcasts in the 700 MHz band. The legislation, inserted into the reconciliation bill since Congress expects to make money from the auction of this band, is now awaiting a signature from President Bush which is expected. In 1997, Congress said that broadcasters in 2007 would have to return an extra 6 MHz of spectrum they were given to facilitate the DTV transition, but TV broadcasters could keep the spectrum if more than 15 percent of the homes in their viewing areas could not receive digital signals. The hard date now eliminates this burden.

The Congressional Budget Office has estimated the value of the DTV spectrum at around $10 billion because the 700 MHz band has excellent propagation characteristics that provide for better economies when it comes to constructing networks. The budget bill also sets aside $1 billion to aid public safety interoperability and creates a fund to subsidize set-top converter boxes for people who receive TV signals over the air. (Contact: Jeff Arnold, 202/942-4286, jarnold@naco.org)

Essential Air Service: If the amount of federal funds appropriated for the Essential Air Service Program (EAS) equals or exceeds $110 million for fiscal year 2007 or 2008, than $15 million in additional funds shall be transferred to the EAS program in those years from the proceeds of the Digital Television Transition and Public Safety Fund. This fund, a very small portion of which could go to EAS, is being created under this legislation from the proceeds of the analog spectrum auction. Currently, EAS subsidizes air service to about 135 small and rural communities and, while it will be at least another 8months before we know if this $15 million bonus will be available, the program did receive exactly $110 million in appropriations in fiscal year 2006. (Contact: Bob Fogel 202/942-4217 or bfogel@naco.org) [top of page]

Senate Passes Tax Reconciliation Bill

Legislation that the Senate passed on Thursday night to provide $70 billion in tax cuts is nearly identical to S. 2020, legislation approved by the chamber last November; it was adopted a second time for procedural reasons. The Senate version of H.R. 4297 includes provisions supported by NACo to extend partial relief from the Alternative Minimum Tax and the option to deduct state and local sales taxes in lieu of income taxes. It also includes provisions opposed by NACo that would require issuers of tax-exempt bond pools to impose up-front commitment fees and spend at least half of the proceeds within a year.

NACo will be sending a letter to members of the conference committee that is reconciling House and Senate versions of this legislation within the next week. If your county takes advantage of tax-exempt bond pools, does not pay an up-front commitment fee or take receipt of bond proceeds within a single year and you have not already spoken with your member of Congress about the implications of this language for your county, please do so. (Contact: Alysoun McLaughlin 202/942-4209 or amclaughlin@naco.org) [top of page]

House Leadership Changes Affect Education and Workforce Committee

On February 2, House Education and Workforce Committee Chairman John Boehner (R-Ohio) defeated Majority Whip Jim Blunt (R-Mo.) in the race for majority leader by a 122-109 vote. Boehner succeeds Representative Tom DeLay (R-Texas), in the position. Rep. Blunt will maintain his republican leadership role as Majority Whip.

As Majority Leader, Boehner must relinquish his chairmanship of the House Education and Workforce Committee. Representatives Thomas Petri (R-Wis.), Howard (Buck) McKeon (R-Calif.) and Michael Castle (R-Del.) are the most senior members on the committee. Buck McKeon, current chair of the 21^st Century Competitiveness Subcommittee is an ally of Boehner and appears to be the frontrunner for the full committee position. McKeon has been very good on workforce and training issues and maintaining local control as subcommittee chair, so this could prove beneficial for the local workforce system. (Contact: Daria Daniel 202/942-4212 or ddaniel@naco.org ) [top of page]

Patriot Act is Extended Again

The House and Senate passed a five-week extension of the Patriot Act, which was ready to expire on February 3. It is the second short-term extension of the bill and the new deadline for action is March 10. The conference report for the bill contains the NACo supported Combat Meth Epidemic Act. The meth provisions would impose nationwide minimum requirements on the sale of pseudoephedrine. Specifically, it would limit sales to 3.6 grams per transaction or 9 grams per month. Individuals would need to show photo-ID and sign a logbook and the product would need to be kept behind a counter or locked cabinet. The legislation also authorizes $99 million for Meth Hot Spot grants and $20 million for drug endangered children teams. Additionally, the legislation would not preempt state law. (Contact: Joe Dunn 202/942-4207 or jdunn@naco.org) [top of page]

NACo to Co-Sponsor Meth Congressional Briefing

On February 14, NACo Executive Director Larry Naake will be briefing congressional staff on the two most recent surveys on the meth epidemic and NACo's comprehensive policy on meth. The briefing will be for congressional staff from the House Meth Caucus and the House Addiction and Treatment Caucus.

On January 18, NACo released two surveys on the impact of methamphetamine abuse on the public treatment and hospital systems. The surveys showed that the need for meth treatment is increasing but many counties do not have the capacity to deal with this rising demand. Additionally, the survey of hospital officials showed that meth was the top drug that brings individuals into county emergency rooms and that often times these individuals are uninsured. Naake will urge the Congress to pass the Combat Meth Epidemic Act and to add treatment funding during the appropriations cycle. (Contact: Joe Dunn 202/942-4207 or jdunn@naco.org) [top of page]