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[05/18/1993 - 01/09/2001] [Pension Reform]
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54979685
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[05/18/1993 - 01/09/2001] [Pension Reform]
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Presidential Electronic Mail from the Automated Records Management System (ARMS)
Automated Records Management System (ARMS) Email from the White House Office (WHO) Bucket
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RECORD TYPE: PRESIDENTIAL (RECONSTRUCTED EMAIL)
CREATOR: Melissa G. Banks
(BANKS_M) (WHO)
CREATION DATE/TIME:18-MAY-1993 17:39:00.00
SUBJECT: FYI - A copy of the letter POTUS sent to MI delegation
TO: Timothy J. Keating
(KEATING_T) (WHO)
READ: UNKNOWN
TEXT:
PRINTER FONT 12_POINT_COURIER
Dear <|>:
Thank you for your letter concerning the motor vehicle
industry.
I am encouraged by the extent to which the industry has
increased its competitiveness through improvements in quality,
new design and production processes, and increased spending for
both research and development and new plants and equipment. At
the same time, the difficulties faced by the industry and the
continuing substantial increase in vehicle miles travelled make
it critical that we confront together such issues as health care,
pension reform, international trade, auto emissions and petroleum
usage.
Because of the far-reaching and interrelated nature of all
these issues, I recently established a National Economic Council
working group on the motor vehicle industry. The working group
includes representatives from all Departments, agencies, and
White House offices which are involved in the development and
implementation of policies that affect the industry. I intend to
use the working group to improve our understanding of the
industry and the full range of the government's interactions with
it, as well as to better coordinate government policy as it
affects the industry.
Once again, thank you for your letter. I look forward to
working with you on this issue in the coming weeks and months.
With best wishes,
Sincerely,
The Honorable
House of Representatives
Washington, D.C. 20515
RECORD TYPE: PRESIDENTIAL (RECONSTRUCTED EMAIL)
CREATOR: Ellen S. Seidman
(SEIDMAN_E) (OPD)
CREATION DATE/TIME:10-JAN-1994 19:32:00.00
SUBJECT: Bob Pozen memo (I finally talked to him)
TO: Linda J. McLaughlin
(MCLAUGHLIN_L) (WHO)
READ: UNKNOWN
CC: Sylvia M. Mathews
(MATHEWS_S) (OPD)
READ: UNKNOWN
TEXT:
PRINTER FONT 12_POINT_COURIER
January 10, 1994
MEMORANDUM FOR BOB RUBIN
FROM:
Ellen Seidman
SUBJECT:
Bob Pozen
Bob Pozen, General Counsel and a Managing Director of Fidelity,
is scheduled to meet with you at 10:30 tomorrow. His assistant
told Linda he wanted to discuss "pensions and IRAs." Mainly, he
wants to talk about IRAs.
IRAs
There is little question here: Pozen was the leading spokesman
for the investment community in trying to get expanded IRAs into
the budget last year, and he undoubtedly wants to lobby you on
them this year. His line: "Of course this is in Fidelity's
interest, but we think this is very good public policy
[The $3 billion price tag over the next five years is] small
potatoes in the context of the US budget."
He will be pressing you to support increasing the $40,000 per
couple income limit for deductible IRA eligibility to $50,000 per
person. Pozen believes that (i) at $100,000 per couple, the IRAs
will be net new savings; and (ii) this is a really good women's
issue, particularly for non-working spouses or those working part
time. Tentative cost: $10 billion over 5 years, mainly from
moving from, in essence, $40,000 per couple to $100,000.
Pensions
Bob may bring up a problem he has with the pending pension
simplification bill. (This is not the Administration's pension
reform bill, but rather a technical tax bill dealing mainly with
rules relating to discrimination.) The problem is that the bill
would not apply a discrimination safe harbor to certain
Simplified Employer Plans, which are used largely by very small
employers.
This is both technical and tricky; small employers are notorious
for having pension plans that cover only the owner. I suggest
that if Bob brings it up, you ask me to follow through with
Treasury on it. I told him I doubted it was something you would
be particularly interested in.
RECORD TYPE: PRESIDENTIAL (RECONSTRUCTED EMAIL)
CREATOR: Ellen S. Seidman
(SEIDMAN_E) (OPD)
CREATION DATE/TIME:11-JAN-1994. 08:28:00.00
SUBJECT: Revised Pozen memo
TO: Linda J. McLaughlin
(MCLAUGHLIN_L) (WHO)
READ: UNKNOWN
CC: Sylvia M. Mathews
(MATHEWS_S) (OPD)
READ: UNKNOWN
TEXT:
I realized after I hit the send button last night that I hadn't revised the
beginning of the IRA paragraph to take account of the fact that I had talked to
Pozen. If Bob hasn't read the previous version, could you please give him this
one? Thanks. Ellen
ATTACHMENT I
ATT CREATOR: Ellen S. Seidman
(UNKNOWN)
ATT CREATION DATE/TIME:11-JAN-1994 08:26:00.00
ATT BODY PART TYPE: A
ATT SUBJECT: Bob Pozen memo (I finally talked to him)
ATT TEXT:
PRINTER FONT 12_POINT_COURIER
January 10, 1994
MEMORANDUM FOR BOB RUBIN
FROM:
Ellen Seidman
SUBJECT:
Bob Pozen
Bob Pozen, General Counsel and a Managing Director of Fidelity,
is scheduled to meet with you at 10:30 tomorrow. His assistant
told Linda he wanted to discuss "pensions and IRAs." Mainly, he
wants to talk about IRAs.
IRAs
Pozen was the leading spokesman for the investment community in
trying to get expanded IRAs into the budget last year, and he
wants to lobby you on them this year. His line: "Of course this
is in Fidelity's interest, but we think this is very good public
policy
[The $3 billion price tag over the next five years
is] small potatoes in the context of the US budget."
He will be pressing you to support increasing the $40,000 per
couple income limit for deductible IRA eligibility to $50,000 per
person. Pozen believes that (i) at $100,000 per couple, the IRAs
will be net new savings; and (ii) this is a really good women's
issue, particularly for non-
working spouses or those working part
time. Tentative cost: $10 billion over 5 years, mainly from
moving from, in essence, $40,000 per couple to $100,000.
Pensions
Bob may bring up a problem he has with the pending pension
simplification bill. (This is not the Administration's pension
reform bill, but rather a technical tax bill dealing mainly with
rules relating to discrimination.) The problem is that the bill
would not apply a discrimination safe harbor to certain
Simplified Employer Plans, which are used largely by very small
employers.
This is both technical and tricky; small employers are notorious
for having pension plans that cover only the owner. I suggest
that if Bob brings it up, you ask me to follow through with
Treasury on it. I told him I doubted it was something you would
be particularly interested in.
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Carter Wilkie ( WILKIE_C ) (WHO)
CREATION DATE/TIME:12-JAN-1995 16:18:40.08
SUBJECT: POTUS event on January 19
TO: Donald A. Baer
(BAER_D) (WHO)
READ:12-JAN-1995 18:32:39.72
TO: Mark Gearan
( GEARAN_M) (WHO)
READ:NOT READ
TO: David Dreyer
(DREYER_D) (WHO)
READ:12-JAN-1995 18:56:17.95
CC: Gabrielle M. Bushman
(BUSHMAN_G) (WHO)
READ:12-JAN-1995 16:20:23.74
CC: Richard L. Siewert
( SIEWERT_R) (WHO)
READ:12-JAN-1995 17:04:53.03
CC: Steven A. Cohen
( COHEN_SA) (WHO)
READ:12-JAN-1995 16:21:49.74
CC: Amanda Crumley
(CRUMLEY_A) (WHO)
READ:12-JAN-1995 16:21:37.60
CC: Stephen B. Silverman
(SILVERMAN_S) (WHO)
READ:12-JAN-1995 16:31:18.45
CC: Phillip M. Caplan
(CAPLAN_P) (WHO)
READ:12-JAN-1995 16:19:37.38
CC: Elgie Holstein
(HOLSTEIN_E) (OPD)
READ:12-JAN-1995 17:59:51.84
TEXT:
On Thursday, January 19, the President is scheduled for an event
in the Roosevelt Room to highlight the pension reform he signed
into law as part of GATT.
As of now, it looks like Sec. Reich will open the event to explain
how hard-working Americans have been hurt when big employers
(e.g., auto, steel, airlines) didn't live up to their end of the
pension bargain.
Two front line workers/retirees will then give their personal
stories.
The President will then explain how we strengthened pension
security on behalf of hard working Americans by getting the big
corporations to pay their fair share of the government pension
insurance fund, which has been running low.
This is likely the President's last public event on domestic
issues before the State of the Union Address. Please think about
how to connect the message of this event to what the President
said at Galesburg and what he might say in the State of the Union
Address.
Thank you.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: David J. Lane (LANE_D) (OPD)
CREATION DATE/TIME:28-FEB-1995 19:13:50.93
SUBJECT: topics for WH talking points and fact sheets
TO: Kimberly J. O'Neill
( ONEILL_KJ) (OPD)
READ: 1-MAR-1995 13:50:24.95
TO: Sheryll D. Cashin
(CASHIN_S) (OPD)
READ:28-FEB-1995 19:15:05.20
TO: Julia E. Chamovitz
( CHAMOVITZ_J ) (OPD)
READ: 1-MAR-1995 09:31:23.89
TO: W.B. Cutter
( CUTTER_W) (OPD)
READ:NOT READ
TO: Paul A. Deegan
(DEEGAN_P) (OPD)
READ:28-FEB-1995 19:20:52.49
TO: Michael D. Deich
( DEICH_M) (OPD)
READ: 1-MAR-1995 09:27:59.62
TO: Paul R. Dimond
(DIMOND_P) (OPD)
READ: 1-MAR-1995 09:20:51.65
TO: Wendy J. Einhellig
( (EINHELLIG_W) (OPD)
READ: 2-MAR-1995 08:03:43.72
TO: Robert C. Fauver
(FAUVER_R) (OPD)
READ: 1-MAR-1995 07:46:51.79
TO: Michael B. Froman
(FROMAN_M) (OPD)
READ:28-FEB-1995 19:21:54.64
TO: Elgie Holstein
(HOLSTEIN_E) (OPD)
READ:28-FEB-1995 19:14:09.97
TO: Thomas A. Kalil
(KALIL_T) Autoforward to: Remote Addressee
(
[email protected]@inet ) (OPD)
READ:NOT READ
TO: Robert D. Kyle
(KYLE_R) (OPD)
READ:NOT READ
TO: Elisabeth L. Lindemuth
(LINDEMUTH_E) (OPD)
READ: 1-MAR-1995 16:19:37.28
TO: Theo Lubke
(LUBKE_T) (OPD)
READ:28-FEB-1995 20:00:50.17
TO: Sylvia M. Mathews
(MATHEWS_S) (OPD)
READ:NOT READ
TO: Sonyia Matthews
(MATTHEWS_S) (OPD)
READ: 1-MAR-1995 09:26:24.39
TO: Linda J. McLaughlin
(MCLAUGHLIN_L) (WHO)
READ:NOT READ
TO: David S. Meyers
(MEYERS_D)
READ:NOT READ
TO: Elaine M. Mitsler
(MITSLER_E) (NSC)
READ: 1-MAR-1995 07:25:08.02
TO: Emily M. Murase
(MURASE_E)
READ:NOT READ
TO: Dorothy Robyn
(ROBYN_D) (OPD)
READ:28-FEB-1995 19:55:47.07
TO: Heather L. Ross
(ROSS_H) (OPD)
READ: 1-MAR-1995 08:53:03.42
TO: Robert E. Rubin
(RUBIN_R)
READ:NOT READ
TO: Ellen S. Seidman
(SEIDMAN_E) (OPD)
READ: 1-MAR-1995 09:05:57.43
TO: Margaret P. Smith
(SMITH_M) (WHO)
READ:NOT READ
TO: Gene B. Sperling
(SPERLING_G) Autoforward to: Paul A. Deegan
(DEEGAN_P)
(PDONE)
READ:28-FEB-1995 19:20:52.49
TO: Helen C. Walsh
(WALSH_H) (OPD)
READ: 1-MAR-1995 16:14:43.31
TO: William E. Whyman
(WHYMAN_W) (OPD)
READ:NOT READ
TO: Peter M. Yu
(YU_P) (OPD)
READ:28-FEB-1995 19:15:24.51
TEXT:
Erskine Bowles has been leading an effort to coordinate more effectively the
production and dissemination of White House message materials. As part of this
effort, the WH will be creating an on-line electronic calalog of talking points
and fact sheets on key policy issues.
By tomorrow afternoon we must provide Erskine with a list of NEC topics which
should be included in this catalog, along with staff contacts responsible for
these issues. To illustrate what he wants, Erskine has provided a DPC list, a
portion of which follows:
Abortion
Jennifer Klein
Affirmative Action
Bill Galston
AIDS
Patsy Fleming
Child Care/Head Start Gaynor McCown
Child Nutrition/WIC
Dorothy Karaynannis
Civil Rights
Steve Warnath
Community Devpt.
Paul Weinstein
Crime and Drugs
Jose Cerda
And so on -- you get the idea. What are the NEC issues that warrant inclusion?
Obviously, Gene and Theo have produced a large inventory of message materials on
topics including the balanced budget amendment, the middle class bill of rights,
economic accomplishments, deficit reduction, interest rates, and others. To
these we need to add the major topics that each of us works on that attract
significant public attention. I offer the following as possibilities:
Small Business
Defense Reinvestment/TRP
Empowerment Zones
Financial Services Reform
Base Closure and Reuse
GATT
NAFTA
Trade
Overall Intl. Economic Leadership (G-7+)
APEC
Information/Telecommunications
Procurement Reform
Pension Reform
Superfund
I'm sure there are many more (and some of these may not be right). If you
e-mail to me by lunchtime Wednesday the topic or two (three?) that you work on
that we should include in our NEC consolidated list, I will forward the list to
Erskine in the afternoon. Remember, inclusion does not suggest that talking
points/fact sheets exist, only that they probably ought to. Thanks for your
help. David
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Kyle M. Baker (BAKER_K) (WHO)
CREATION DATE/TIME: 7-MAR-1995 14:40:08.02
SUBJECT: C/F Ref.
TO: Remote Addressee
(
1=US@2=TELEMAIL@3=INTERNET@*RFC-
822DMARTIN628(A)AOL.COM@MRX@EOPMRX)
READ:NOT READ
TEXT:
Item from the WH Bulletin:
o
Bipartisan House group pushes campaign reform.
A bipartisan group of House members who worked together on the
Congressional Accountability Act announced this morning their next
project will be campaign reform. Republicans Chris Shays, Jay
Dickey, Scott Klug and Michael Castle, along with Democrats David
Minge, Nathan Deal, Enid Waldholtz, Paul McHale and Tom Barrett
plan to put forward seven separate measures aimed at reforming
campaign laws. An aide to Shays said, "It's a group of nine
members who have been working together for the last two months to
come up with a group of bills and a position that will have
bipartisan support. Basically, we're trying to apply the same
bipartisan, comprehensive approach we used in working on the
Congressional Accountability Act." The aide said the group hopes
to have committee hearings on their legislation scheduled by late
spring or early summer. "We learned with the congressional
accountability issue that these things can take time. We're just
going to keep working and have more and more members become part
of the group," the aide said, adding, "We'll be seeking
cosponsors, but this is the core group that's been putting
together the proposals." The seven measures the group intends to
put forward concern use frequent flier miles, franking reform,
returning unused office funds in a congressional office to the
treasury, campaign finance reform, gift reform, congressional
pension reform and lobbyist disclosure.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Ellen S. Seidman ( SEIDMAN_E) (OPD)
CREATION DATE/TIME:10-MAR-1995 10:15:30.79
SUBJECT: RE: seniors talking points - please review ss/pension sections
TO: Lynn M. Margherio
(MARGHERIO_L) (WHO)
READ:10-MAR-1995 10:27:07.76
TEXT:
It's OK for a speech, but I just think we spend too much time talking about how
we're going to punish folks (in this case employers) rather than how we're going
to help them (in this case retirees). PArticularly in a piece on the aging,
rather than one on pension reform, I think we should emphasize the positive.
Ellen
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Molly Brostrom (BROSTROM_M) (WHO)
CREATION DATE/TIME:26-APR-1995 11:33:42.03
SUBJECT: attached seniors tlkg points
TO: Jennifer L. Klein
(KLEIN_J) (OPD)
READ:26-APR-1995 11:34:11.24
TO: Christopher C. Jennings
(JENNINGS_C) (OPD)
READ:26-APR-1995 11:47:17.20
CC: Jeremy D. Benami
(BENAMI_J) (OPD)
READ:26-APR-1995 11:37:13.95
TEXT:
Attached are seniors talking points created by Lynn in March which
we would like to pass out at the 5:00 WHCoA (they are the same
tlkg points used for Jake's Issue Briefs). Media affairs would
like tlkg pts to give to people doing media calls in coming days.
Would either/both of you review the health care piece, and either
send me edits or an ok by 4:00 today?
thanks. sorry about the time--i just got the request today. and
the points look general enought that they should be close to fine.
ATTACHMENT
1
ATT CREATION TIME/DATE:26-APR-1995 11:07:00.00
ATT BODYPART TYPE:p
ATT CREATOR: Molly Brostrom
TEXT:
PRINTER FONT 12_POINT_ROMAN
PRESIDENT CLINTON: WORKING FOR OLDER AMERICANS
PRINTER FONT_12_POINT_ROMAN_ITALIC
"Our senior citizens have made us what we are."
PRINTER FONT 12_POINT_ROMAN
President Clinton, State of the Union,
1995
"My position is, I haven't and don't support cuts in Social
Security, and I would support savings in the Medicare program only
if they're used to advance the cause of health care."
President Clinton, October 23, 1994
PROMOTING ECONOMIC SECURITY People who work hard and play by the rules
should be rewarded. The Clinton Administration is committed to promoting
economic security and opportunity across generations.
?
A stable Social Security System The Administration is committed
to preserving Social Security benefits and ensuring long-term
integrity of the Trust Fund. Social Security benefits should not
be used to balance the budget or pay for tax cuts for the wealthy.
?
Bolstering Public Confidence By strengthening and streamlining
the program, we're bolstering public confidence in Social
Security. We worked with the Congress to make SSA an independent
agency, and now SSA is working hard to improve customer service
and satisfaction -- through its 800 number, by reducing the number
of pending disability claims and by mailing Personal Earnings and
Benefit Estimate Statements (PEBES) so Americans know the
retirement benefits they can expect.
?
A Reliable Pension System People deserve a pension system that
they can rely on so President Clinton signed the Retirement
Protection Act in December 1994. Now, workers and retirees will
be able to count on receiving the pensions they have earned.
?
Enhanced IRAs The President's Middle Class Bill of Rights allows
people to set up an Individual Retirement Account and withdraw it
tax-free for the cost of education or first time home buying
or the care of a parent or health care.
THE CLINTON ADMINISTRATION CONTINUES TO FIGHT FOR REAL HEALTH CARE
REFORM We remain firmly committed to guaranteeing health security to
all Americans and to containing health care costs for families,
businesses and federal, state and local governments.
?
First Steps In his December letter to the Congressional
leadership, the President stated that this year, we can take the
first steps. The Congress can, and should, reform the insurance
market, make coverage affordable for, and available to, children;
help workers who lose their jobs keep their health insurance;
level the playing field for the self-employed; and help families
provide long-
term care for a sick parent or a disabled child.
?
Long Term Care We know that long-term care is of critical
importance to the elderly. That's why we're proposing tax clarifications for private long-term care insurance and
consumer standards for long-term care so that
insurance policies are worth more than the paper they're written
on.
?
Fighting Republican Cuts We're fighting to protect health care
for mothers, children, the disabled and aged Americans.
Republicans want to cut Medicare by about $300 billion and federal
Medicaid spending by at least $180 billion to $190 billion between
now and 2002. These cuts will mean shifting a staggering financial
burden to elderly and disabled Medicare beneficiaries; dropping
coverage or shrinking benefits for mothers and children on
Medicaid; and significant cuts in payments to hospitals,
physicians and other providers.
?
Making Medicare and Medicaid Responsive to Beneficiary Needs
We're proposing more managed care options to increase choices for
beneficiaries not as a smokescreen for deep and arbitrary cuts.
And, we're streamlining regulations and cutting paperwork.
?
Health Reform Critical to Deficit Reduction The President has
consistently said that we cannot get a hold of the deficit without
passing meaningful health reform. Over the next five years alone,
almost 40 percent of the growth in total federal spending will
come from rising costs in federal health care programs. We must
contain costs in these programs. But we must do it as we reform
our health care system as a whole -- not by arbitrarily cutting
programs that serve the most vulnerable Americans.
A BETTER QUALITY OF LIFE The Administration is committed to fighting
for a better quality of life - - safe streets, high-quality and
affordable education for everyone, and making services available where
they're needed most - - at the community level.
?
Fighting Crime The Administration passed the smartest, toughest,
and most comprehensive Anti-Crime bill in this country's
history a bill that provides police, prisons, punishment and
prevention so that the streets families live on are safer.
?
Education President Clinton has signed the Student Loan Reform
Act, Goals 2000, School-to-Work and expanded Head Start. His
"Middle Class Bill of Rights" calls for tax cuts for parents
trying to put their kids through school and a $500 tax cut for
families with children under 13.
?
Promoting community service 20,000 young people are devotingtheir
time to community service through the Administration's Americorps;
some work with seniors in their community. And, Senior Corps
programs like Foster Grandparent and the Retired and Senior
Volunteer Program boast 526,000 participants.
?
Reinventing Government The Administration has eliminated 102,000
jobs and continues to cut obsolete regulations; reward results,
not red tape; taking power away from federal bureaucracies and
giving it back to communities.
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (XCHANGE MAIL)
CREATOR: Kathy Curran ( CN=Kathy
Curran/OU=WASHINGTON.DC/OU=NO/OU=SECY/O=DEPTOFLABOR/C=US [ UNKNOWN 1)
CREATION DATE/TIME: 3-MAY-1995 17:03:26.00
SUBJECT: Weekly report
TO: Stephen B. Silverman ( CN=Stephen B. Silverman/OU=WHO/O=GOV @ WHO [ WHO
READ:UNKNOWN
CC: Mark Hunker ( CN=Mark Hunker/OU=WASHINGTON.DC/OU=ASP/O=DEPTOFLABOR/C=US @ DOL [
UNKNOWN ])
READ:UNKNOWN
TEXT:
MEMORANDUM TO: LEON PANETTA
CHIEF OF STAFF TO THE PRESIDENT
FROM:
ROBERT B. REICH
SECRETARY OF LABOR
SUBJECT:
Weekly Report for the Week of November 14,
1994
DATE:
November 18, 1994
TWO WEEKS AHEAD: Highlights
Anxious Class III: The Democratic Leadership Council (DLC) will sponsor
the third in my four-part series of speeches on the anxious class on
Tuesday, November 22 at the Hyatt Regency. (I will deliver the last of
the four speeches at a National Press Club newsmaker breakfast on December
15.) Following Tuesday's speech I hope to do interviews with major labor
and political writers, a network morning program, and nationally
syndicated radio programs to discuss the theme of the speech.
October Unemployment Numbers. The monthly unemployment numbers will be
announced on Friday, December 2.
UPDATE ON KEY POLICY INITIATIVES
I. School to Work Implementation
School-to-Work Urban/Rural Opportunities Grants. We now plan to announce
the award of 15-20 school-to-work grants to high-poverty areas sometime
before Thanksgiving. These grants will follow the 8 state grants and 15
local partnership grants awarded earlier this year.
Skills Standards Board. On Tuesday, November 15, the National Retail
Federation (NRF) unveiled its skills standards for the retail industry.
I participated in a press conference/site visit with the NRF to publicize
the announcement. The event was held at a Foot Locker store in the
National Press Building, where I participated in an on-site demonstration
of retail skills standards with Donna Melvin, a Foot Locker sales
associate who won a skills challenge award. This event gained coverage
on CNN, several trade papers, Detroit Free Press, Knight- Ridder and
Reuters among others.
The Goals 2000 legislation called for the establishment of a National
Skills Standards Board to promote and assist in the development of a
voluntary national system of skills standards. The Department is
encouraging industries to develop skills standards for their employees,
and is assisting in the development of those standards. This effort will
foster a highly skilled and flexible workforce that will possess skills
transferable across employers, and will be equipped to evolve their work
practices as the market evolves.
I met with Jamie Houghton, the CEO of Corning, Inc., on Monday, November
14. He and I discussed the National Skills Standards Board, which Mr.
Houghton has been invited to join. Mr. Houghton agreed to join the Board,
and indicated he would serve as chair if chosen.
II. Indoor Air Quality
There will only be two days of hearings held next week due to the
Thanksgiving Holiday. The discussions are likely to be fairly technical.
Among the topics to be covered are the efficiency of air purification
equipment to reduce levels of pollutants in indoor workplaces; specific
provisions of the indoor air proposal and their implications; the health
effects related to poor indoor air quality; and the health implications of
the proposed rule.
III. Health Care Reform
Secretary Shalala and I met with AFSCME President Gerry McEntee and SEIU
President John Sweeney on Wednesday, November 16, to discuss the short and
long term adverse employment effects of restructuring the health care
system.
OTHER EVENTS, MEETINGS AND PRESS
1. Next Two Weeks
Massachusetts' Industrial Services Program. On Tuesday, November 22, I
will videotape remarks to be played on December 6 at the 10th Anniversary
Party for the Industrial Services Program in Massachusetts. The ISP
oversees all of the dislocated worker programs in the Commonwealth of
Massachusetts, and is also involved in unemployment insurance profiling,
defense conversion, and one-stop shopping.
Governor John McKernan. I will meet with Maine's Governor John McKernan
on Tuesday, November 29, to discuss issues related to implementation of
the School-to-Work Opportunities Act and reemployment initiatives.
Business Outreach. As part of my ongoing effort to build relationships
with key members of the business community, I will meet with John
Clendenin, CEO of Bell South on November 30. Mr. Clendenin recently
received the National Alliance of Business Lyndon Baines Johnson Award.
Chairman Ford's Retirement. Later in the day on November 30 I will attend
a party in honor of retiring House Education and Labor Committee Chairman
Bill Ford.
Press
I expect most of my press interviews next week will concern my Anxious
Class speech. The following week I will do press interviews in connection
with the release of the monthly unemployment numbers.
2. Past Week
Preparation for the Beijing World Conference. The Department's Women's
Bureau and the State Department hosted the last of a series of 10 regional
preparatory meetings for the Fourth World Conference in Beijing. EPA
cosponsored this meeting and Administrator Carol Browner attended and
spoke. The meetings took place on Tuesday and Wednesday, November 15 and
16.
Meeting with Frank Hanley. I met with International Union of Operating
Engineers' General President Frank Hanley on Wednesday, November 16. Mr.
Hanley discussed his concern that Davis-Bacon protections continue to
apply to environmental restoration projects on Department of Energy and
Superfund sites.
New School for Social Research Speech. On Thursday, November 17, I spoke
by satellite to the New School for Social Research's Youth Employment
Conference. The conference addressed the topic "The Urban Dilemma:
Employing Out-of-School Youth." The audience consisted of government,
community and business representatives from the major urban centers on the
East Coast. I spoke on the Administration's efforts to prepare young
people for good jobs particularly disadvantaged young people in our
center cities.
DOL Policy Retreat. The Department held a two-day retreat for senior
executive staff on Thursday and Friday, November 17 and 18. The goal of
the retreat is to reassess what the Department has accomplished in the
last two years, and to begin to develop objectives and a strategy for the
next two years.
Press
1994 Accomplishments. I held a series of one on one breakfast and lunches
with reporters who might be writing end of the year stories which wrap up
the Administration's accomplishments thus far. This week I met with the
following reporters: Monday, November 14, John Heileman of The Economist
and Michelle Norris of ABC; Tuesday, November 15, Ron Brownstein of the
L.A. Times and Dave Sanger of the New York Times; and, David Wessell of
the Wall Street Journal and Catherine Manegold of the New York Times.
Targeted Jobs Tax Credit. On Monday, November 14, ABC News interviewed me
about the Department's position on the Targeted Jobs Tax Credit.
Pension Reform. I was interviewed by Brian Tumulty of Gannett Newspapers
on Tuesday, November 15, for general comments on pension reform. Last
week he had a more technical interview with Pension Benefit Guarantee
Corporation Director Martin Slate for the same story.
CPI Changes. On Wednesday, November 16, I was interviewed on Marketplace
Radio on changes to the Consumer Price Index.
The New Congress. I spoke with Wendy Koch of Gannett Newspapers on
Friday, November 18 to discuss the new Congress.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Molly Brostrom (BROSTROM_M) (WHO)
CREATION DATE/TIME: 9-JUN-1995 17:46:06.87
SUBJECT: senior ib
TO: Richard L. Siewert
(SIEWERT_R) (WHO)
READ:12-JUN-1995 07:38:47.24
TEXT:
The seniors and housing issue briefs on oasis are not the most
recent versions. Attached are the seniors tlkg pts I updated for
the WHConf on AGing. And let me know if you don't have the
housing ib that I sent to you last Friday.
Also, I need to make a small change to the veterans ib. Should I
send you a revised version to replace the one on oasis? or do you
want to send me the one on oasis and i'll send it back revised? i
don't know if it matters logistically..
thanks
ATTACHMENT I
ATT CREATION TIME/DATE: 9-JUN-1995 17:39:00.00
ATT BODYPART TYPE:p
ATT CREATOR: Molly Brostrom
TEXT:
PRINTER FONT 14_POINT_ROMAN
PRESIDENT CLINTON: WORKING FOR OLDER
AMERICANS
PRINTER FONT 12_POINT_ROMAN_ITALIC
"Our senior citizens have made us what we are."
PRINTER FONT 12_POINT_ROMAN
President Clinton, State of the
Union, 1995
PRINTER FONT 12_POINT_ROMAN_ITALIC
"My position is, I haven't and don't support cuts in Social
Security, and I would support savings in the Medicare
program only if they're used to advance the cause of health
care."
PRINTER FONT 12_POINT_ROMAN
President Clinton, October 23, 1994
BRINGING SENIORS TO THE TABLE Our nation's seniors are central
to our communities. The Clinton Administration is committed to
addressing the concerns of Older Americans and including them in
decision
-making.
?
Elevation of Commissioner of Aging. President Clinton
elevated the position of Commissioner on Aging to Assistant
Secretary status to make sure the interests and concerns of
older Americans are at the table when decisions are made.
?
1995 White House Conference on Aging. President Clinton
demonstrated his commitment to older Americans by calling
for the fourth White House Conference on Aging, after the
1991 Conference failed to take place.
PROMOTING ECONOMIC SECURITY People who work hard and play by the
rules should be rewarded. The Clinton Administration is committed
to promoting economic security and opportunity across
generations.
?
A stable Social Security System The Administration is
committed to preserving Social Security benefits and
ensuring long
-term integrity of the Trust Fund. Social
Security benefits should not be used to balance the budget
or pay for tax cuts for the wealthy.
?
Bolstering Public Confidence By strengthening and
streamlining the program, we're bolstering public confidence
in Social Security. We worked with the Congress to make SSA
an independent agency, and now SSA is working hard to
improve customer service and satisfaction -- through its 800
number, by reducing the number of pending disability claims
and by mailing Personal Earnings and Benefit Estimate
Statements (PEBES) so Americans know the retirement benefits
they can expect.
?
A Reliable Pension System People deserve a pension system
that they can rely on so President Clinton signed the
Retirement Protection Act in December 1994. Now, workers
and retirees will be able to count on receiving the pensions
they have earned.
?
Enhanced IRAs The President's Middle Class Bill of Rights
allows people to set up an Individual Retirement Account and
withdraw it tax
-free for the cost of education or first
time home buying or the care of a parent or health
care.
THE CLINTON ADMINISTRATION CONTINUES TO FIGHT FOR REAL HEALTH
CARE REFORM We remain firmly committed to guaranteeing health
security to all Americans and to containing health care costs for
families, businesses and federal, state and local governments.
?
First Steps As the President has consistently stated, this
year we can take the first steps. The Congress can, and
should, reform the insurance market; make coverage
affordable for working families; help workers who lose their
jobs keep their health insurance; continue the start made
already to level the playing field for the self
-employed;
and help families provide long
-term care for a sick parent
or a disabled child.
?
Long Term Care We know that long
-term care is of critical
importance to the elderly. That's why we have consistently
supported expanding state administered home care services.
It's also why we support tax clarifications for private
long
-term care insurance and consumer standards for
long
-term care so that insurance policies are worth more
than the paper they're written on.
?
Fighting Republican Cuts We're fighting to protect health
care for mothers, children, the disabled and aged Americans.
Republicans want to cut Medicare by about $250 billion and
federal Medicaid spending by about $160 billion between now
and 2002. These cuts will mean shifting a staggering
financial burden to elderly and disabled Medicare
beneficiaries; dropping coverage or shrinking benefits for
the elderly, disabled, or mothers and children on Medicaid;
and significant cuts in payments to hospitals, physicians
and other providers.
?
Making Medicare and Medicaid Responsive to Beneficiary Needs
We're supportive of an expansion of managed care options to
increase choices for beneficiaries -- not as a smokescreen
for deep and arbitrary cuts. And, we're streamlining
regulations and cutting paperwork.
?
Health Reform Critical to Deficit Reduction The President
has consistently said that we cannot get a hold of the
deficit without passing meaningful health reform. Over the
next five years alone, almost 40 percent of the growth in
total federal spending will come from rising costs in
federal health care programs. We must contain costs in
these programs. But we must do it as we reform our health
care system as a whole - - not by arbitrarily cutting
programs that serve the most vulnerable Americans.
A BETTER QUALITY OF LIFE The Administration is committed to
fighting for a better quality of life - - safe streets,
high
-quality and affordable education for everyone, and making
services available where they're needed most - - at the community
level.
?
Fighting Crime The Administration passed the smartest,
toughest, and most comprehensive Anti
-Crime bill in this
country's history a bill that provides police, prisons,
punishment and prevention so that the streets families
live on are safer.
?
Education President Clinton has signed the Student Loan
Reform Act, Goals 2000, School
-to
- Work and expanded Head
Start. His "Middle Class Bill of Rights" calls for tax cuts
for parents trying to put their kids through school and a
$500 tax cut for families with children under 13.
?
Promoting community service 20,000 young people are
devoting their time to community service through the
Administration's Americorps; some work with seniors in their
community. And, Senior Corps programs like Foster
Grandparent and the Retired and Senior Volunteer Program
boast 526,000 participants.
?
Reinventing Government The Administration has eliminated
102,000 jobs and continues to cut obsolete regulations;
reward results, not red tape; taking power away from
federal bureaucracies and giving it back to communities.
Staff Contact: Molly Brostrom, DPC
Last Updated: 4/26/95
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (EXTERNAL MAIL)
CREATOR: [email protected]@INET@EOPMRX
CREATION DATE/TIME:10-JUL-1995 11:46:00.00
SUBJECT: Question on Pensions
TO: Jake Siewart
(siewert_r@A1@CD) (WHO)
READ:10-JUL-1995 12:33:32.13
TEXT:
Jake,
The Concord Coalition released a report on federal pensions today. I have seen
in our accomplishments "pension reform." Do you have info on this or can you
point me in the right direction?
Thanks.
Robin
ATTACHMENT 1
ATT CREATION TIME/DATE:10-JUL-1995 11:42:00.00
ATT BODYPART TYPE:D
TEXT:
RFC-822-headers:
Received: from gatekeeper.eop.gov by PMDF.EOP.GOV (PMDF V4.3-13 #6879)
id <[email protected]> Mon, 10 Jul 1995 11:46:30 -0400 (EDT)
Received: by gatekeeper.eop.gov (5.65/fma-120691); id AA08903; Mon,
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Received: by dub-img-2.compuserve.com (8.6.10/5.950515) id LAA15440; Mon,
10 Jul 1995 11:42:17 -0400
END ATTACHMENT 1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Richard L. Siewert ( SIEWERT_R) (WHO)
CREATION DATE/TIME:10-JUL-1995 13:11:19.10
SUBJECT: PENSION
TO: Remote Addressee
([email protected]@INET)
READ:NOT READ
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE:10-JUL-1995 12:34:00.00
ATT BODYPART TYPE:p
ATT CREATOR: Richard L. Siewert
TEXT:
PRINTER FONT 12_POINT_COURIER
PENSION REFORM
"The Retirement Protection Act says that people
deserve a pension system that they rely on. They
deserve employers who take actions to be worthy of
their own trust and the labor that they give them,
year-
in and year-
out. They deserve a Government
that will protect them and stand by them, a
Government that is their partner.
In
stabilizing the Federal insurance system, we used
the power of Government to avert a potential
crisis, protecting millions of retirees, corporate
pension plans, and the taxpayers from huge
potential losses."
President Clinton
January 19, 1995
THE CHALLENGE: Defined benefit pension plans -
-
where
an employer promises a certain benefit based on
earnings and years of service -
-
were in trouble when
the Administration came into office. Underfunding had
grown from $27 billion in 1987 to $53 billion in 1992,
much of it in older industries (such as steel, autos,
tires and airlines) with companies in trouble. This
put workers at risk of not getting the pensions they
had been promised. The deficit of the Pension Benefit
Guaranty Corporation, the government agency that
guarantees most -
-
but not in all cases the full amount
-
-
of such pensions was also growing, potentially
putting taxpayers at risk.
OUR RESPONSE: In March 1993, as one of the
Administration's first actions, the Labor Department
established an interagency task force to develop
legislation to respond to both the underfunding and
PBGC deficit problems. On September 30, 1993, the
Administration submitted to Congress the Retirement
Protection Act. The RPA, which passed as part of the
GATT legislation in December 1994:
Strengthens underfunded pension plans
It accelerates funding for plans that
are less than 90% funded, with the
fastest funding required for plans less
than 60% funded;
It reforms actuarial assumptions that
had weakened plan funding and solvency;
and
It requires severely underfunded plans
to have enough cash and marketable
securities to make current benefits
payments.
Increases premiums for pension plans that
pose the greatest risk
It requires the most underfunded pension
plans to pay premiums that reflect the
level of their underfunding -
-
under a
formula that encourages them to increase
funding.
Strengthens enforcement of pension laws by
the PBGC
It requires reporting on pension and
corporation information by companies
with severely underfunded plans; and
It enhances the PBGC's authority to
assure that annual pension contributions
are made.
Improves information for workers and retirees
in underfunded plans and protections in fully
funded plans
It requires most employers whose plans
are less than 90% funded to provide a
notice to participants, in simple
language, about plan funding and the
limits of PBGC's guarantees; and
It establishes the PBGC as a
clearinghouse for the benefits of
participants in terminated plans who
cannot initially be found when the plan
is terminated.
POSITION/PLAN: The Administration's philosophy in this
area, as elsewhere, is that people who work hard and
play by the rules should be rewarded. In the pension
area it means that workers who are promised pension
benefits and work the number of years required to get
them should be assured the benefits will be there when
they retire. With the passage of the RPA, the
Administration has the tools to meet this goal. In the
coming years we will:
Vigorously enforce the RPA;
Continue to monitor plan funding to ensure
that the RPA reforms in fact accomplish their
goal of moving toward fully funded plans
within a reasonable period of time;
Continue to stand up for plan beneficiaries -
both retirees and workers -
when companies
get in trouble, and work to prevent companies
from disadvantaging plan beneficiaries when
restructuring;
Work to simplify pension laws and regulations
so that more employers will establish and
maintain pension plans, whether defined
benefit or defined contribution, for their
employees.
Staff Contact: Ellen Seidman, NEC, 456-
2802
Last Updated:
March 6, 1995
END ATTACHMENT
1
Clinton Presidential Records
Automated Records Management System
[EMAIL] and Tape Restoration Project [Email]
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies a responsive email, already made available
within another collection.
Collection: 2013-0306-F
Bucket: who
Creation Date: 1995-10-19
Subject: afl-cio -- kusnet
Creator: Russell W. Horwitz HORWITZ_R WHO
RECORD TYPE: PRESIDENTIAL (EXTERNAL MAIL)
CREATOR:Bill_Dauster@budget_min.senate.gov@INET@EOPMRX
CREATION DATE/TIME:23-OCT-1995 21:37:00.00
SUBJECT: Reconciliation Summary Part 4
TO: Heimbach J
(Heimbach_J@A1@CD) (WHO)
READ:24-OCT-1995 08:54:59.54
TEXT:
Increased Taxes for Middle Income Families
The Finance tax changes (including revisions in the Earned Income
Tax Credit) will raise taxes on average for all taxpayers earning
under $30,000 in the year 2000, according the tables prepared by the
Joint Committee on Taxation. This amounts to nearly half of all
taxpayers in 2000. By contrast, those earning over $350,000 will be
receive an average tax break of $5,626.
The centerpiece of the plan, the $500-per-child, non-refundable,
tax credit, is tilted against low-and moderate-income families,
despite its being phased out for singles with incomes above $75,000
and for couples with incomes above $110,000. Because the credit is
non- refundable, it is of partial or no use to middle-and low-income
taxpayers whose total taxes amount to less than the available credit.
For example, a couple with two minor children and one wage earner
working full time at twice the minimum wage would receive a credit of
only $180, not $1,000. At the other end of the scale, the credit
would be reduced to $500 when the couple S income reached $130,000 and
would not be fully phased out until their income reached $150,000.
Approximately 23.7 million children, living in families with low or
moderate incomes, will receive no aid from the child credit because
those family S incomes are too low to qualify for any of the credit,
according to a study by the Center on Budget Policy and Priorities.
Another 7 million children would receive only a partial credit. By
contrast, only an estimated 3.1 million children live with high-income
families that will not qualify for the credit.
Hidden Tax Breaks for the Wealthy
The Finance tax reductions are back loaded. They grow by 64
percent between 2003 and 2005, from $224 billion to $369.5 billion.
Three proposals the back-loaded IRA, capital gains relief and the
estate tax changes are at the heart of this increase. The costs
of the IRA proposals alone skyrocket from a total $4.3 billion in the
first 5 years to $34 billion in the second 5 years.
Those provisions greatly favor upper-income taxpayers. Nearly
two-thirds of the individual capital gains break in 2000 (the last
year distribution data was provided by the Joint Committee on
Taxation) will benefit those earning over $100,000. The capital
gains tax break will benefit taxpayers with income between $20,000 and
$30,000 by about $5 on average. Those making over $200,000 will
receive an average cut of nearly $1,500. The new back- loaded
Individual Retirement Account allows any taxpayer to place $2,000 of
taxed income into an account and to withdraw the income from that
account tax-free provided certain conditions are met. Upper income
taxpayers are not only more able to take advantage of this new
proposal, but they will also receive a greater tax break when the
income in withdrawn. The estate tax changes will exempt estates of up
to $750,000 from paying any Federal estate tax. In addition, the
proposal will exclude the first $1.5 million, and 50 percent of the
next $3.5 million, of a qualified family-owned business from a
decedent S taxable estate.
Corporate Tax Breaks
In addition to the wealthy, corporations are the big winners in the
Finance Committee S revenue proposals. The maximum corporate capital
gains rate will be reduced from 35 percent to 28 percent at a cost of
$6.9 billion. Changes in the alternative minimum tax will cost $9.2
billion. A new Work Opportunity Tax Credit, replacing the Targeted
Jobs Tax Credit, will provide a credit of up to $2,100
per-qualified-employee for employers. And, the research and
experimentation tax credit is extended until February 28, 1997 at a
cost of $3 billion.
Retirement Funds Raided
Forgetting, or ignoring that raids on overfunded pension plans
fed the corporate merger mania of the 1980s, the Finance tax title
proposes to allow corporations to raid pension fund assets to fund
employee benefits. This ill-advised proposal, at a cost of $5
billion, is a scaled back version of a even more irresponsible measure
passed by the House Ways and Means Committee. As recently as 1990,
Congress passed legislation to stop pension reversions. The Pension
Benefit Guarantee Corporation recently released a study of 10 large
pension plans insured by the PBGC and concluded that the funding level
would fall to an average 87 percent on a termination basis even if
currently funded at 125 percent of current liability. The study
concluded that the House plan would leave many pension plans with
insufficient resources to protect retirees and the [Federally insured]
PBGC.
Superfund Taxes used for Tax Cut
The Finance tax provisions extend the Superfund excise taxes
through September 30, 2002 and the Superfund alternative minimum tax
through December 31, 1997. Extending those taxes as part of the
Reconciliation bill will significantly hinder efforts to reauthorize
the Superfund law.
Even some Republicans are concerned about the impact of this
extension. Senator Smith said he was "shocked" by this proposal
because it took away the offset for a tax credit provision that he
intends as part of a Superfund overhaul. Without the tax credits,
there is simply "no bill" according to Smith.
Tax Loopholes
Numerous tax loopholes and special member provisions are
scattered throughout the Finance tax proposals. Retail motor fuel
outlet stores (convenience stores) will have their depreciation
recovery period reduced from 39 to 15 years. The Alaska Power
Administration is allowed a specific exemption to finance the purchase
of the Snettisham hydroelectric project. Alaska is exempted from the
diesel dying requirements. Newspaper publishers receive a
clarification of whether newspaper carriers are independent
contractors, a proposal with negligible revenue effect. Agricultural
and horticultural organizations that charge dues to associate members
will not be required to report such dues as unrelated business income
even though the associate membership is offered primarily to raise
income.
Title VIII: Governmental Affairs
The Governmental Affairs Committee was instructed to save $9.8
billion over 7 years. The Committee proposes to delay COLAs for
Federal retirees by 3 months for each of the next 7 years. Federal
agencies would be required to contribute 1.5 percent more of payroll
for CSRS retirement costs. All Federal employees would be required to
contribute 0.5 percent more to their retirement. Congressional and
staff pensions are made to conform with pensions other Federal
employees. The Committee avoided more controversial changes proposed
by the Budget Committee, including modifying the number of years of
salary used to calculate pension benefits, and reducing the Federal
contribution to the Federal Employees Health Benefits Program.
The Committee S mark did not include language to eliminate the
Department of Commerce. The House intends to, however, include
elimination of the Department in its final package. Whether this will
be included in the final package depends on whether the
Parliamentarian rules that the House language satisfies Byrd Rule
requirements.
Title IX: Judiciary
The Judiciary Committee proposal meets its reconciliation target of
$476 million over 7 years by extending patent and trademark fees
scheduled to expire after fiscal year 1998.
More than $300 million of these fees would be eliminated by a
provision in the House Commerce Committee reconciliation language to
dismantle the Commerce department. This provision converts Patent and
Trademark Office (PTO) surcharge fees from offsetting receipts to
offsetting collections, which allows them to be spent without annual
appropriations.
Title X: Labor and Human Resources
The Senate Labor and Human Resources Committee reported legislation
that cuts $10.8 billion from student loan programs over 7 years. The
savings are achieved by: (1) capping the direct student loan program
at 20 percent of loan volume; (2) eliminating the 6-month, post-
graduation interest-free grace period; (3) raising the interest rate
on Federal loans parents can secure to help pay for their child S
college education; (4) assessing an 0.85 percent fee on colleges and
universities on their annual Federal student loan volume; and (5)
cutting subsidies and charging new fees to lenders, Sallie Mae, and
guarantee agencies.
The scoring of this title is biased. The budget resolution directs
the Congressional Budget Office to override certain costing
conventions contained in the Federal Credit Reform Act of 1990. If
the scoring of these provisions was done according to the law, only
$7.7 billion $3.1 billion less would be saved by this title.
This proposal will significantly raise the cost of college for
students. Depending on the amount borrowed, eliminating the grace
period would add an additional $700 to $2,500 in interest to be repaid
per student. Given the tremendous debt burden already facing today S
college graduates, this additional cost could mean more defaults.
There are even additional hidden costs for the average American
family. Raising the interest rate for parents from 3.1 to 4 percent
on Federal loans would cost up to $5,000 for low- and middle-income
families who borrow heavily to pay for college, while wealthier
families are able to secure tax-deductible home equity loans with
lower interest rates.
For colleges and universities, the 0.85 percent fee means that
these institutions would have to pay $201 million in 1996 and $1.8
billion over 7 years to the U.S. Treasury. This tax would penalize
colleges for admitting financially-needy students. Furthermore, this
tax could be paid out of a school S financial aid budget, thus
limiting the number of grants given to students.
These proposals are totally skewed in favor of the bankers, while
hurting students. It is telling that the loan industry lenders,
secondary market agents, and guarantee agencies are willing to accept
nearly $4 billion in new fees and lower subsidies in exchange for the
greater share of the loan market resulting from the 20 percent cap on
direct lending. If enacted, this cap would force nearly half of the
1,338 schools already participating out of this highly successful
program, and once again, make borrowing more costly and complicated
for students.
Title XI: Veterans Affairs
The Veterans Affairs Committees proposes a variety of
recommendations for meeting its reconciliation target of $6.4 billion
over 7 years. Although the Committee exceeds its target by $267
million over 7 years, the Committee is out of compliance in 1996 by
$124 million
The Committee S recommendations would impact five programs of the
Department of Veterans Affairs (VA): compensation ($3 billion),
education ($983 million), pensions ($927 million), medical care
($1.2 billion), and housing ($581 million).
The proposal includes a new provision that would revise liability
standards for treatment in VA facilities. Currently, veterans who are
injured during treatment in a VA facility and their survivors may be
eligible to receive disability compensation benefits. Court decisions
require that the VA consider claims for compensation from veterans
whose conditions worsen after treatment in VA facilities, regardless
of whether the cause was negligence or accident. The Committee S
proposal would in effect reverse the recent Supreme Court Gardner
decision and make the VA responsible for medical error or negligence,
but not for the possible or unintentional consequences of procedures
whose risks were known and accepted by the patient.
Monthly rates of disability compensation paid to veterans and
dependency and indemnity compensation paid to their survivors are
increased by the same cost-of-living adjustment payable to Social
Security recipients, and the results of the adjustments are rounded to
the nearest dollar. The Committee S recommendation would round down
adjustments through 2002 down to the next lower dollar.
Two provisions would impact veterans education programs. One would
increase the contribution required of Montgomery GI Bill participants.
Originally, participants received $9 of education assistance benefits
for every $1 contributed. Rate increases were enacted to help keep
pace with the increased cost of education so that currently there is a
12:1 funding ratio. This provision would return to the original 9:1
funding ratio, affecting over 1.4 million service personnel, despite
increasing tuition costs and in the midst of overall education
assistance cuts. A second provision would limit COLAs for Montgomery
GI Bill education assistance payments to half of the level required by
current law.
Five of the recommendations would extend through 2002 provisions of
law that are set to expire before that time. The extensions include:
(1) a $90 limitation on pension benefits paid to beneficiaries
receiving Medicaid coverage in a Medicaid-approved nursing home; (2)
current law that authorizes the VA to acquire income reported to the
IRS for the purpose of verifying income reported by recipients of VA
pension benefits and to verify records to determine eligibility for
means-tested medical care; (3) VA S authority to collect from
third-party insurers for the cost of treating veterans with
service-connected disabilities for their non service-connected
ailments: (4) VA S authority to collect per diems for hospitalization
and nursing home care and co-payments for outpatient medications; and
(5) two provisions regarding the veterans home loan program.
PROCEDURAL SLEIGHT OF HAND
The Republicans have played fast and loose with the procedures to
get this far. As many will recall the budget resolution required the
spending committees to complete their work and then send it to the
Budget Committee. The Budget Committee would then dispatch that work
to CBO, which would certify compliance with the instructions. Then,
and only then, was the Finance Committee free to mark up the tax bill.
The way it actually worked was that the Chairman of the Budget
Committee wrote CBO asking for the certification before he had
received the majority of the language. That letter is akin to a
tenant writing to a landlord saying, Here is my rent check and not
enclosing anything in the envelope.
The Finance Committee jumped the gun too, beginning its tax markup
before it had received certification from CBO. There has just been
one effort after another to cut corners and railroad this process.
The cruel irony is that this may not even be a balanced budget. It
may be just so much hype. The Majority claims that this is the first
bill that will balance the budget. They forget that many of them
claimed to do the same in the 1990 Budget Summit a short 5 years ago.
They claim that they achieve a balanced budget with this bill, and
waive proudly a certificate from the Republican-appointed CBO
Director. That is questionable, as well. This bill gets to that
alleged achievement using several gimmicks and sleight of hand that
were against the budget law just last year.
The Majority claims to get to balance in part by counting assets
sales. This is like selling your garage to pay your mortgage. Asset
sales have not counted for CBO or OMB scorekeeping purposes since
1987. And they will only count today because the Majority cooked the
bookkeeping rules this year.
The Majority also put the books on a high flame for the scoring of
student loans. Under last year S budget law, their student loan
provision would have saved less a than $8 billion. This year, after
the Republican budget chefs got through with the budget law, they
claim it wail save $3 billion more.
The Majority gives the Environment and Public Works Committee
credit for over half a billion in savings that even they do not
believe are real. CBO made a mistake a flat-out mistake in its
budget baseline starting point. Now, the Environment Committee gets
credit for restoring the baseline spending levels to what they were
before the mistake. And the Majority pretends that those dollars
contribute to the $632 billion they need to achieve in this bill.
According to the numbers in CBO's certification letter, the sum of
the reconciliation numbers as required by section 205 of the
Conference Report on the Budget Resolution has not been met.
Here are the facts. The conference report required that the sum of
the reconciliation instructions over the seven years add up to $632.29
billion dollars.
The Parliamentarian has assured the Democrats that this is the sum
of outlay reductions, plus revenues raised by the Governmental Affairs
Committee. No other revenues shall be counted since no other
committees had instructions to raise revenues.
CBO calculates $627.1 billion worth of outlay reductions. CBO
calculates $3.7 billion worth of revenue increases contained in the
Governmental Affairs language.
The $20.5 billion in revenues attributed to the Finance committee
should not be counted towards the sum of the reconciliation directives
because Finance did not have an instruction to raise revenues
Therefore the total of outlay reductions plus Governmental Affairs
tax increases comes to $630.8 billion, which is short of the $632.29
billion required.
We could go on and on, but the point has been made. This bill will
no more achieve a balanced Federal budget than the 1990 bill did. And
they know it.
Yet the Majority proceeds ahead and piles these lavish tax breaks
on the rich as if we just received a report of a budget surplus last
year. That is wrong. We should not be lavishing tax breaks on the
rich, and we should certainly not be doing so until we first get our
fiscal house in order.
BUDGET PROCESS AND THE RECONCILIATION BILL
The Congressional Budget Act of 1974 sets forth limitations on the
type of material that
ATTACHMENT 1
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ATT BODYPART TYPE:D
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1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Lydia Muniz (MUNIZ_L) (OMB)
CREATION DATE/TIME:27-NOV-1995 12:24:59.73
SUBJECT: DRAFT RECONCILIATION VETO MESSAGE
TO: Martha Foley
(FOLEY_M) (WHO)
READ:27-NOV-1995 16:25:57.74
TO: John C. Angell
(ANGELL_J) (WHO)
READ:27-NOV-1995 13:24:21.74
CC: LAWRENCE J. HAAS
( HAAS_L) (OMB)
READ:27-NOV-1995 13:47:09.71
TEXT:
Please review the attached draft veto statement and get back to
me with comments and/or clearance. Thank you!
PRINTER FONT 12_POINT_COURIER
TO THE HOUSE OF REPRESENTATIVES:
I am returning today without my approval H.R. 2491, which
seeks to make extreme cuts and other unacceptable changes in
Medicare and Medicaid, and to raise taxes on millions of working
Americans.
As I have repeatedly stressed, I want to find common ground
with Congress on a budget plan that will best serve the American
people. But, I have profound differences with the extreme
approach that Congress has adopted. It would hurt average
Americans and help special interests.
My balanced budget plan reflects the values that Americans
share -- work and family, opportunity and responsibility. It
would protect Medicare and retain Medicaid's guarantee of
coverage; invest in education and training and other priorities;
and provide for a targeted tax cut to help middle
-income
Americans raise their children, save for the future, and pay for
postsecondary education. To reach balance, my plan would
eliminate wasteful spending, streamline programs, and end
unneeded subsidies; take the first, serious steps toward health
care reform; reform welfare to reward work; and cut non
-defense
discretionary spending, other than my investments, 22 percent in
real terms by 2002.
By contrast, H.R. 2491 would cut deeply into Medicare,
Medicaid, student loans, and food stamps; hurt the environment;
raise taxes on millions of working families by slashing the
Earned Income Tax Credit (EITC); and provide a huge tax cut whose
benefits would flow disproportionately to those who are already
the most well
-off.
Moreover, this bill creates new fiscal pressures. Revenue
losses from the tax cuts grow rapidly after 2002, with costs
exploding for provisions that primarily benefit upper
-income
taxpayers. For the individual retirement account (IRA), capital
gains, and estate tax provisions, the revenue losses for the
three years after 2002 exceed the losses for the preceding six
years.
Title VIII would cut Medicare by $270 billion over seven
years -- by far the largest cut in Medicare's 30
-year history.
While we need to slow the rate of growth in Medicare spending, I
believe Medicare must keep pace with anticipated increases in the
costs of medical services and the growing number of elderly
Americans. This bill would fall woefully short. In addition,
the bill introduces untested, and highly questionable, Medicare
"choices" that could increase risks and costs for the most
vulnerable beneficiaries.
Title VII would cut Federal Medicaid payments to states by
$163 billion over seven years and convert the program into a
block grant, eliminating guaranteed coverage to millions of
Americans and putting states at risk during economic downturns.
States would face untenable choices: cutting benefits, dropping
coverage for millions of beneficiaries, or reducing provider
payments to a level that would undermine quality service to
children, people with disabilities, the elderly, pregnant women,
and others who depend on Medicaid. I am also concerned that the
bill has inadequate quality and income protections for nursing
home residents, the developmentally disabled, and their families;
and that it would eliminate a program that guarantees
immunizations to many children.
Title IV would virtually eliminate the Direct Student Loan
Program, reversing its significant progress and ending the
participation of over 1,300 schools and hundreds of thousands of
students. These actions would hurt middle- and low
-income
families, make student loan programs less efficient, perpetuate
unnecessary red tape, and deny students and schools the
free
-market choice of guaranteed or direct loans.
Title V would open the Arctic National Wildlife Refuge
(ANWR) to oil and gas drilling, threatening a unique, pristine
ecosystem, in hopes of generating $1.3 billion in federal
revenues -- a revenue estimate based on wishful thinking and
outdated analysis. I want to protect this biologically
-rich
wilderness permanently. I am also concerned about other
environmental provisions, including one that would retain the
notorious patenting provision whereby the government transfers
billions of dollars of publicly
-owned minerals at little or no
charge to private interests.
While making such devastating cuts in Medicare, Medicaid,
and other vital programs, this bill would provide huge tax cuts
for those who are already the most well
-off. Over 47 percent of
the tax benefits would go to families with income over $100,000
-- the top 12 percent. The bill would provide unwarranted
benefits to corporations and new tax breaks for special
interests. At the same time, it would raise taxes, on average,
for the poorest fifth of all families.
The bill would make capital gains cuts retroactive to
January 1, 1995, providing a windfall of $13 billion in the first
9 months of 1995 alone to taxpayers who already have sold their
assets. Cuts in the corporate alternative minimum tax would
virtually eliminate a provision that was designed to ensure that
profitable corporations pay at least some federal tax. The bill
also would allow businesses to avoid taxes by accumulating
foreign earnings without limit. And the bill does not include my
proposal to close a loophole that allows wealthy Americans to
avoid taxes on the gains they accrue by giving up their U.S.
citizenship. Instead, it substitutes a provision that would
prove ineffective.
While cutting taxes for the well
-off, this bill would cut
the EITC for almost 13 million working families. It would repeal
part of the scheduled 1996 increase for taxpayers with two or
more children, and end the credit for workers who do not live
with qualifying children. Even after accounting for other tax
cuts in this bill, eight million families would face a net tax
increase.
The bill would make unwise changes to pension fund asset
reversions -- making it easy for companies to withdraw "excess"
pension assets -- threatening the retirement benefits of workers
and increasing the exposure of the Pension Benefit Guaranty
Corporation. It also would raise Federal employee retirement
contributions, unduly burdening Federal workers. Moreover, the
bill would eliminate the low
-income housing tax credit and the
community development corporation tax credit, which address
critical housing needs and help rebuild communities. Finally, it
would repeal a tax credit that benefits Puerto Rico and the
possessions in a way that ignores the needs of U.S. citizens who
live there.
Title XII includes many welfare provisions. When added to
the EITC cuts in this bill, these provisions would cut low
-income
programs too deeply. For welfare reform to succeed, savings
should result from moving people from welfare to work, not from
cutting people off and shifting costs to the states. The cost of
excessive program cuts in human terms -- to working families,
single mothers with small children, abused and neglected
children, low
-income immigrants, and disabled children -- would
be grave.
The agriculture provisions would eliminate the safety net
that farm programs provide for U.S. agriculture. Title I would
provide windfall payments to producers when prices are high, but
not protect family farm income when prices are low. In addition,
it would slash spending for agricultural export assistance and
reduce the environmental benefits of the Conservation Reserve
Program.
For all of these reasons and others, this bill is
unacceptable.
Nevertheless, while I have major differences with Congress,
I want to work with Members to find a common path to balance the
budget in a way that will improve the standard of living of all
Americans.
WILLIAM J. CLINTON
THE WHITE HOUSE,
November , 1995.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Seth E. Masket (MASKET_S) (WHO)
CREATION DATE/TIME: 3-JAN-1996 17:05:31.35
SUBJECT: RE: Retiree stuff
TO: Ellen S. Seidman
(SEIDMAN_E) (OPD)
READ: 3-JAN-1996 17:20:10.08
TEXT:
Sorry. Was it the letter from the WV Consolidated Public
Retirement Board, in which they got very specific and we decided
to stay general about pension reform? I think I cc'd you a copy
of that one.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: David Shipley (SHIPLEY_D) (WHO)
CREATION DATE/TIME:11-JAN-1996 09:54:21.63
SUBJECT: nashville
TO: Kamarck, Elaine C.
(KAMARC_E) Autoforward to: Remote Addressee
( Elaine C.
Kamarck@LNGATE@EOPMRX) (VPO)
READ:NOT READ
TEXT:
Elaine,
For the Peterbilt speech -- yes, the Peterbilt speech -- I need
your three best sentences on pension reform. What have we done?
And what have we stopped the Republican Congress from doing?
Thanks, as always, for your help.
David 67289
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Seth E. Masket (MASKET_S) (WHO)
CREATION DATE/TIME:19-JAN-1996 11:54:57.78
SUBJECT: Pension letter
TO: Ellen S. Seidman
(SEIDMAN_E) (OPD)
READ:19-JAN-1996 14:05:33.79
TEXT:
Remember that letter regarding pension reform from about a month
ago. Well, in the wake of the storm and everything else, it's
only now ready to go out the door. I'm assuming that the language
is still okay, but I've been asked to run it by you one more time.
Could you look this over and let me know if it's still accurate?
Thanks for your help. -Seth
Mr. James L. Sims
Executive Secretary
Consolidated Public Retirement Board
Capitol Complex, Building 5, Room 1000
1900 Kanawha Boulevard, East
Charleston, West Virginia 25305-0720
Dear James:
Thank you for your letter. Strengthening
and simplifying the nation's pension system is an
important goal of my Administration, and I greatly
appreciate your support for this vital effort.
We are working to improve the retirement
savings system in a way that supports and increases
coverage. By encouraging employer-sponsored
retirement plans, particularly in the small busi-
ness community, workers can be assured of a sound
retirement. This, in turn, is an effective way to
create savings, generating individual savings for
retirement and bolstering the savings rate for the
economy as a whole. The streamlining of unwieldy
pension laws will mean a better future for more
hardworking citizens and a stronger economy for
us all.
As we seek to build a future of greater
security for retirees, I will certainly keep your
perspective in mind. I welcome your continued
involvement.
Sincerely,
Bill Clinton
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Ellen S. Seidman ( SEIDMAN_E) (OPD)
CREATION DATE/TIME: 2-APR-1996 09:59:44.84
SUBJECT: Final reversions paper
TO: Gene B. Sperling
(SPERLING_G) Autoforward to: Daniel Taberski
(TABERSKI_D)
(WHO)
READ: 2-APR-1996 10:03:30.19
TO: Daniel Taberski
(TABERSKI_D) (OPD)
READ: 2-APR-1996 10:03:30.19
TEXT:
Attached is a final version of the reversions paper. I fits on 2 pages if you
don't use letterhead margin at the top of the first. Otherwise it will run over
to 3 pages. I also sent Gene a message about 401(k)s, but forgot to cc Dan.
Ellen
ATTACHMENT 1
ATT CREATION TIME/DATE: 2-APR-1996 09:59:00.00
ATT BODYPART TYPE:p
TEXT:
COMMENT
AUTHOR : Ellen Seidman
OPERATOR : Ellen Seidman
COMMENT :
PRINTER FONT 11_POINT_ROMAN
April 2, 1996
MEMORANDUM FOR: LAURA TYSON
FROM:
GENE SPERLING
ELLEN SEIDMAN
SUBJECT:
Pension reversion provision in new pension
package
The Issue
During the 1980s, pension reversions were used by many companies
to finance mergers, acquisitions, leveraged buyouts and for
general corporate purposes. Pension plans sponsored by some of
these same companies later became severely underfunded, to the
detriment of workers and retirees. In 1990, Congress enacted a
set of excise taxes, at levels as high as 50%, to recapture the
tax benefits to corporations of funding pension plans. The
excise taxes have virtually eliminated reversions, although
withdrawals are allowed for retiree health expenses. During the
1995 budget battle, the Republicans proposed to sharply increase
the ability of corporations to take reversions for general
corporate use without paying the excise tax.
The Administration vigorously fought the Republican proposals to
cut back substantially on the 1990 limitations, characterizing
them as ?pension raiding,? and citing the excesses of the 1980s.
Although the proposal was eliminated in the Senate, it was
included in the final Balanced Budget package, and was cited as
one of the reasons for the President?s veto. The public response
to the Administration?s position was extremely favorable.
What Next? - Options
We would like to revive and replay the reversions issue as part
of a proposed pension initiative. There are four options for
doing this:
?
Propose nothing new, but characterize the new package as
consistent with and building upon the Administration?s opposition
to pension raiding, relying on rhetoric rather than a proposal to
revive the issue.
?
The Administration?s stand against reversions, and the
characterization of the Republicans? proposal as ?pension
raiding,? is well
-known and has been successful. Simply
reminding people of it will have resonance.
?
The 1990 changes have solved the problem of 1980s
-style
abuse; nothing more is needed.
?
To some extent, the limited right to take a reversion, even
with penalties, helps encourage employers to fully fund their
plans, because they know they can have access to the excess
if it is really needed.
?
Although business supported the Republican proposal, they
were somewhat embarrassed by it and did not overtly oppose
the Administration?s position; going further may generate
overt opposition.
?
Making a new proposal will focus the debate on the merits of
that proposal, rather than keeping it focused on the
Republican's
error.
?
Propose amending the law to require the Treasury or Labor
Department to report annually to Congress on reversion activity
since the enactment of ERISA, and to supplement the report
annually.
?
By proposing some change, we increase the focus on this issue
and on our position against Republican ?pension raiding.?
?
A report could demonstrate that the current law's excise
taxes have been effective in preventing reversions and serve
as a periodic reminder of Republican efforts to raid
pensions.
?
A reporting requirement of this sort is unlikely to generate
opposition, change the terms of the debate, or create other
significant risks.
?
However, such a report will do little to increase the
disincentives for individual companies to take reversions.
?
Propose amending the law to require employers who take
reversions to give notices to their employees before such action
is taken.
?
By proposing a change focused on employees, we increase the
focus on the employee
-protection aspects of this issue and on
our position in contrast to Republican pension raiding.
?
Having to provide such a notice can be a significant
disincentive to taking a reversion.
?
However, by proposing such a notice requirement, we may imply
that (i) reversions are fine, as long as employees are told
and (ii) far more reversions are taking place than is in fact
the case, potentially creating unnecessary worry on the part
of employees.
?
Businesses are likely to view this type of reporting
requirement as a practical limit on their ability to take
reversions, which may create overt opposition to the
Administration?s position where little now exists.
?
It may have some impact on business's desire to fully fund
plans ? and will certainly lead to their stating that it will
have such an impact.
?
Propose amending the law to prohibit reversions entirely.
?
This is an unambiguous further statement of our opposition to
Republican pension raiding.
?
This will establish by implication what has long been
ambiguous: that money in a pension trust belongs to the
employees, not the employer.
?
The ownership issue is, however, one of the clearest "hot
buttons" for employers; to raise it now will divert attention
from the good things in our package and virtually assure
business opposition.
?
Reversions have in fact been held to a trickle by the stiff
excise taxes imposed in 1990; to propose to prohibit them
entirely may imply that they are more common than is the
case, thereby unnecessarily generating employee concern.
?
Current law helps encourage full funding by allowing
employers the possibility of recovering excess funding after
payment of all benefits and excise taxes. Small business
owners already complain that, if they fund generously, they
are particularly exposed to the risk that there will be
excess assets on plan termination that will be largely taxed
away. Both small and large business will assert that a
reversion ban will discourage them from adequately funding
pension plans.
?
Including a total ban on reversions in a message focused in
part on alleviating the impact of downsizing invites the
question why we should preclude completely any possibility
that a financially strapped company with sufficient pension
surplus might choose to withdraw the surplus to save workers'
jobs.
?
We have had fairly good bipartisan support for our position;
the Senate vote to delete the reversion provision was 94
-5.
This would polarize the issue, and may carry the polarization
over to the broader issue of pension reform, which has long
enjoyed solid bipartisan support.
Recommendation
We understand the Secretary of Labor favors the fourth option, an
outright ban. We understand the Secretary of Treasury is opposed
to such a ban on both policy and political grounds, and is not
convinced of the need to take any legislative action. We
recommend the second option -- a Treasury or Labor report on
reversions. It is important to use this legislation to express
strongly that we must not go backwards on reversions, and having
a legislative hook that says we'll put the spotlight on any
increase in reversion activity is sufficient to accomplish this,
without generating unneeded opposition.
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Patricia F. Lewis (LEWIS_PF) (WHO)
CREATION DATE/TIME:12-APR-1996 10:45:22.44
SUBJECT: Conference Calls
TO: Lorraine McHugh
(MCHUGH_L) (WHO)
READ:12-APR-1996 10:46:14.43
TEXT:
Just to let you know that the three conference calls I did this week all went
well. I was particularly impressed at how well everyone did in promoting the
same themes - in staying on the message from the White House. That included
Robert Achtenberg's call Thursday, Marty Slate's call with business reporters
from the Chicago Sun Times and Peoria Journal Star, and Sec. Olena Berg's call
with Mary Beth Franklin, Maturity News Service, today. (It turned out there are
some key changes of particular interest to recent and soon-to-be retirees. I'm
planning a mailing that highlights these.)
All three referred repeatedly to 'President Clinton's initiatives;' when
Franklin asked about pension security, Berg said she was alot more comfortable
answering that question today than she would have been two years ago...she
praised the president's pension reform act...
RECORD TYPE: PRESIDENTIAL (EXTERNAL MAIL)
CREATOR: [email protected]@INET@EOPMRX
CREATION DATE/TIME:14-APR-1996 00:19:00.00
SUBJECT: GOP Idea Would Profit Insurance Co. with GOP Ties [scdp-l 960413]
TO: Recipients of SCDP-L
([email protected]@INET@EOPMRX )
READ:NOT READ
IND_TO: Angus S. King
(KING_A) (WHO)
READ:15-APR-1996 09:59:05.24
TEXT:
From: [email protected]
By ROBERT PEAR
c.1996 N.Y. Times News Service
WASHINGTON - A health insurance company with close political and financial
ties to Republican leaders stands to benefit substantially from a proposal
that conservative Republicans want to add to a major health insurance bill
scheduled for debate this week on the Senate floor.
The proposal, already approved by the House, would create tax incentives
for people to set up medical savings accounts to pay health care expenses.
The company, Golden Rule Insurance Co., sells a special type of health
insurance that would have to be purchased by people with such tax-free
accounts.
The insurance has high deductibles and relatively low premiums but would
pay medical bills exceeding the amount for which the patient was
responsible - $1,500 a year for an individual and $3,000 for a family,
under the House bill.
The proposal would allow people to put pretax dollars into the medical
savings accounts to pay their deductibles.
The main purpose of the Senate and House bills is to guarantee that people
in employer-sponsored health plans would be able to get health insurance
after switching or losing their jobs. But some Republican senators, like
House Republican leaders, insist that the bill must also encourage medical
savings accounts.
Many experts on health care and insurance say such accounts are, at best, a
quirky idea that would be worth trying on only a small scale, with proper
safeguards for consumers. The Congressional Joint Committee on Taxation
estimates that a million households would establish the accounts under the
bill approved late last month by the House.
The proposal is generating political passion out of proportion to the
number of people expected to sign up. House Speaker Newt Gingrich and other
Republicans say that medical savings accounts would give consumers a wider
choice of health insurance options, strong new incentives to control health
costs and more control over the use of the money earmarked for health care.
But many Democrats denounce the accounts as bad health policy, and they say
that the proposal is being pushed by Republicans as a reward to Golden Rule
and its former chairman, J. Patrick Rooney, a strong supporter of
Republican causes. His father founded the company, and his family controls
it.
The medical savings accounts would work this way. An employer or an
employee could put money into the account, and that money would belong to
the employee. Any money not used in one year could be carried over and
invested, like the money in an individual retirement account.
Earnings on such investments would not be taxed, and money withdrawn from a
medical savings account would not be subject to income tax if it was used
for medical expenses.
At the heart of the debate is an empirical question: are healthy people
more likely than sick people to establish medical savings accounts? Most
Democrats say yes, while Republicans say no.
The Congressional Budget Office and the American Academy of Actuaries share
the concern that younger, healthier people would be more inclined to choose
medical savings accounts and the high-deductible insurance policies that go
with them.
Democrats say that sick people and those with chronic health problems would
prefer conventional insurance because the deductibles are much lower: an
average of $250 a year for individuals and $600 for families.
Patients are personally responsible for those amounts, and sick people
generally know they will have higher medical expenses, so they will shun
the high-deductible policies, the Democrats say. They say healthier people
would have more to gain from medical savings accounts because they would
have more money left over at the end of a year.
Republicans, by contrast, say the high-deductible policies would also
appeal to sick people because the policies could provide unlimited
protection against catastrophic medical expenses after the deductibles were
met. Insurers now often set annual or lifetime limits on the benefits that
will be paid for a subscriber.
But Cathy L. Hurwit, legislative director of Citizen Action, a consumer
group with three million members, said, ``In theory, the insurance company
would pay all health care costs once you pay your deductible, but nothing
in the House bill requires that."
Rep. Pete Stark, D-Calif., said on the House floor last month that the
Republican proposal was "a payoff to the Golden Rule Insurance Company" -
a characterization disputed by Republican leaders and Golden Rule
executives.
Rep. Cynthia McKinney, D-Ga., asked on the House floor: ``Why medical
savings accounts? Just follow the money. The Golden Rule Insurance Company
has given more than $1.4 million to the GOP, and, coincidentally, Golden
Rule just happens to be the premier company peddling medical savings
accounts."
Rooney offered slightly different numbers. In an interview, he said that he
and Golden Rule employees had given $1.1 million to the Republican National
Committee and Republican candidates for Congress since January 1993.
Common Cause, the public affairs lobby, said that Rooney and John M.
Whelan, Golden Rule's president, had given more than $117,000 to Gopac, the
political action committee that helped Gingrich take control of the House.
Golden Rule, which describes itself as one of the biggest suppliers of
health insurance to individuals and small groups and says it covers about
1.8 million people, it has shown persistence in trying to promote medical
savings accounts.
Rooney, a maverick in the insurance industry, said: ``I support medical
savings accounts because I believe they are good for the American people.
It's no shock to me that I am being condemned, or my company is being
condemned. We are caught up in the conflict between the two parties."
But Mary Nell Lehnhard, senior vice president of the Blue Cross and Blue
Shield Association, said, "We're afraid that medical savings accounts will
segment the market into people who are very healthy and people who are not
healthy."
If that happens, she said, "you lose the whole principle of insurance,
which is cross-subsidy," with premiums being collected from people who are
healthy today to subsidize care for the sick.
"You need a mix of people who are using health care services and people
who are not to make it affordable for everyone," Ms. Lehnhard said.
Members of Congress say the overall health insurance bill has an excellent
chance of becoming law, but the outlook for medical savings accounts is
less clear.
Gingrich said he would not risk a presidential veto over the issue, but
other conservatives planned to fight for the accounts in a House-Senate
conference.
The bill scheduled for debate this week is sponsored by Sens. Nancy
Kassebaum, R-Kan., and Edward Kennedy, D-Mass. Conservative Republicans say
they will propose amendments to encourage medical savings accounts. Mrs.
Kassebaum, Kennedy and the White House oppose such amendments, saying they
could sink the bill.
The House and Senate bills would restrict practices that insurers use to
identify people with medical problems. Rooney said that Golden Rule
sometimes denied coverage to such people or charged them high premiums.
Whelan defended those practices in testimony before Congress in 1994.
"Fire insurance is not provided after the house catches fire," he said,
``nor is auto-theft insurance provided after the car is stolen. To provide
health coverage to people for a medical condition which has already
occurred may be charitable; it is not the business of insurance."
But Ms. Hurwit of Citizen Action said: "The idea that health insurance is
only for the healthy is absurd. Eighty-one million people have some form of
health problem that could be labeled a pre-existing condition, everything
from asthma to cancer."
Golden Rule has resisted efforts by several states to require the sale of
health insurance to all applicants and to limit premium variations.
When New Hampshire was considering such legislation in 1993, state Sen.
Jeanne Shaheen, a Democrat, issued a news release saying, "Golden Rule
represents everything that is wrong with health care in America." She
asserted that the company had ``resorted to lies and half-truths," telling
policyholders that their premiums would soar.
In Kentucky, state Rep. Ernesto Scorsone, a Democrat, said that Golden Rule
had run a campaign of ``disinformation, misinformation and outright
deception."
Whelan acknowledged that the company's lobbying had been ``forceful and
aggressive." But he said that Golden Rule had violated no laws and was
merely trying to protect policyholders.
"How many Republicans does it take to screw a light bulb?
None. We only screw the poor."
-- Senator Greg Gregory (R-Lancaster) [The State, 3/17/96]
Posted by: Eric Folley <[email protected]>, moderator of the
SC Democratic Party Mailing List <[email protected]>
To subscribe to this list, send mail to <[email protected]>
with "Subscribe SCDP-L your-name" as the subject.
The South Carolina Democratic Party Home Page:
http://www2.scsn.net/users/efolley/scdp/scdp_home.html
ATTACHMENT 1
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ATT BODYPART TYPE:D
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END ATTACHMENT
I
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Stuart Schear (SCHEAR_S) (WHO)
CREATION DATE/TIME:15-APR-1996 15:35:59.25
SUBJECT: pensions
TO: Rica F. Rodman
(RODMAN_R) (WHO)
READ:15-APR-1996 15:36:27.98
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE:10-APR-1996 20:41:00.00
ATT BODYPART TYPE:H
ATT CREATOR: Stuart Schear
ATT SUBJECT: PENSION INTERVIEWS
ATT TO: Michael McCurry
(MCCURRY_M)
ATT TO: Lorraine McHugh
(MCHUGH_L)
ATT TO: Angus S. King
(KING_A)
ATT TO: Barry J. Toiv
(TOIV_B)
ATT TO: Gene B. Sperling
(SPERLING_G)
ATT TO: Jason S. Goldberg
(GOLDBERG_JS)
ATT TO: Laura Capps
( CAPPS_L)
ATT TO: Mary Ellen Glynn
(GLYNN_M)
ATT TO: Virginia M. Terzano
(TERZANO_V)
ATT TO: Michelle M. Jolin
(JOLIN_M)
ATT TO: Laura D. Schwartz
(SCHWARTZ_L)
ATT TO: Julie E. Mason
(MASON_J)
TEXT:
PRINTER FONT 12_POINT_COURIER
April 10, 1996
Memorandum to Mike McCurry and Don Baer
From
:Stuart Schear & Laura Schwartz
Subject :Pension Reform TV Interviews
Thursday April 11
TIME
7:05 AM
GUEST
Secy. Reich
SHOW
Fox Morning News
INTERVIEWER Lark Mccarthy
TIME
8:09 AM
GUEST
Secy. Reich
SHOW
Good Morning America (ABC)
INTERVIEWER Forrest Sawyer
TIME
12:20 PM
GUEST
Joseph Stiglitz
SHOW
Inside Opinion (CNBC)
TIME
1:00 PM
GUEST
Secy. Reich
SHOW
CNN NEWS
INTERVIEWER TBD
TIME
4:10 PM
GUEST
Laura Tyson
SHOW
Street Sweep (CNN/FN)
INTERVIEWER TBD
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Melissa Y. Cook (COOK_MY) (OMB)
CREATION DATE/TIME:17-APR-1996 16:37:53.68
SUBJECT: S 1080, TSP issue -- 1st of 4
TO: Mark J. Mazur
(MAZUR_M) (WHO)
READ:17-APR-1996 17:31:33.11
TEXT:
Sorry, you were left off the original list. I just thought you
might want the e-mails/background from earlier today. I'll send
the other 3 in order.
ATTACHMENT 1
ATT CREATION TIME/DATE:17-APR-1996 11:03:00.00
ATT BODYPART TYPE:B
ATT CREATOR: Melissa Y. Cook
ATT SUBJECT: LRM #4042: Views on S 1080, Thrift Savings
ATT TO: Ellen S. Seidman
(SEIDMAN_E)
ATT TO: Carol S. Johnson
(JOHNSON_CS)
ATT CC: Bruce D. Long
(LONG_B)
ATT CC: Robert B. Rideout
(RIDEOUT_R)
ATT CC: Mark D. Menchik
(MENCHIK_M)
ATT CC: Janet R. Forsgren
(FORSGREN_J)
ATT CC: Anna M. Briatico
(BRIATICO_A)
TEXT:
I wanted to let you know what comments I have received on S 1080,
"Thrift Savings Investment Funds Act of 1996" (LRM #4042). As
you may recall, the Full S. Governmental Affairs Committee is
scheduled to mark up this legislation TOMORROW, APRIL 18TH.
The only troublesome issue with S 1080 identified thus far is the
the change in the mandatory account cash out amount --- replacing
the $3,500 dollar "de minimis" amount with an amount set by the
Executive Director of the Thrift Investment Board. DOL,
Treasury, and CEA (Mazur, see his e-mail attached) have all
voiced concerns about this provision.
DOL advises that it may raise this issue at a meeting scheduled
for today at NEC regarding pension reform in general. DOL said
that it had discussed the "de minimis" change with the Thrift
Savings Board to see if the Board had any plans to change the
$3,500 amount. Apparently the Board told DOL that if they were
to change the amount, it would lower it, not raise it (as DOL
feared).
The preliminary comments that Treasury forwarded from the Office
of Tax Policy were the following:
"To the exent that this bill changes TSP rules to be more
consistent with private qualified plan rules, we are generally
not opposed to the changes. We do have some concern about the
language of the bill which provide for mandatory cash-outs of
employees with accounts that are less than an amount that the
Executive Director of the Board prescribes by regulation --
without any statutory cap. We understand, based on informal
discussions, that current Board administrators intend only to
cash out balances of $200 or less. We believe that a cap should
be included in the statutory language and we would have no
objection to a cap at or near this level."
Treasury has discussed the "de minimis" issue with Carol Johnson.
Treasury would like OMB to contact informally the Thrift Board to
convey Treasury's concerns and to ask that the Thrift Board work
informally with the Committee to get a statutory cap. (LRD
suggests that OMB not play "middle man," and that instead
Treasury -- and Labor if it wants -- contact the Thrift Board
directly.)
At this point, neither DOL nor Treasury plans prepare a views
letter on this bill because they do not think that the "de
minimis" issue rises to that level. (Note: DOL also said that
they were disinclined to do a letter on S 1080 because they have
heard that the House bill making changes to TSP is worse.)
Do you agree with these agencies' determinations not to send
views letters to the Hill regarding this matter? If so, should
LRD tell Treasury and Labor if they feel strongly about the
the de minimis amount matter they should work directly with the
Thrift Board informally to attempt to get the Committee to
change the bill language?
Ellen -- Do you have any comments on S. 1080 or recommendation as
to what the Administration's position should be on this bill?
Thanks.
END ATTACHMENT
1
ATTACHMENT 2
ATT CREATION TIME/DATE:15-APR-1996 17:30:00.00
ATT BODYPART TYPE:B
ATT CREATOR: Mark J. Mazur
ATT SUBJECT: comments on Irm 4042
ATT TO: Melissa Y. Cook
(COOK_MY)
TEXT:
Melissa,
Here are my comments on S. 1080 (Thrift Savings Investments Funds Act). I hope
they are helpful. Please call me at 395-5147 if you have any questions.
(1) Setting up additional investment funds makes sense, providing that TSP has
the technical capability to run them.
(2) The in-service withdrawal provisions seem to make TSP more like private
sector defined contribution plans. However, we should be aware that providing
these options will increase the transaction costs of running the fund. Is there
a provision for the increased resources necessary to process the different
withdrawals, etc.?
(3) There are numerous references to removing the $3,500 dollar "de minimis"
amount and replacing it with one set by the Executive Director. I cannot
comment on the desirability of making this change when I have no idea why TSP
wants to make this change or even whether the Executive Director would increase
this amount or lower it.
Mark
END ATTACHMENT 2
RECORD TYPE: PRESIDENTIAL (XCHANGE MAIL)
CREATOR: Sandy Mancini ( CN=Sandy Mancini/O=Department of the Treasury [ Treas 1)
CREATION DATE/TIME:26-APR-1996 13:13:53.00
SUBJECT: Weekly Report
TO: Stephen B. Silverman ( CN=Stephen B. Silverman/OU=WHO/O=GOV @ WHO [ WHO ])
READ:UNKNOWN
CC: Dan Lipner ( CN=Dan Lipner/OU=WHO/O=GOV @ WHO [ WHO )
READ:UNKNOWN
TEXT:
ATTACHMENT
1
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
PRINTER FONT 12_POINT_ROMAN
\d
MEMORANDUM FOR LEON PANETTA, THE WHITE HOUSE
FROM:
Robert E. Rubin
SUBJECT:
Weekly Report for the Week of April 29, 1996
KEY DEPARTMENT NEWS
Secretary Rubin's Activities: On April 29, Secretary Rubin will
participate with the President in the announcement of the
Administration's drug control strategy in Miami. On April 30,
Secretary Rubin will address Representative Hinchey's Business
Day seminar. He will also be interviewed on the Michael Jackson
Show on KBAC radio, and meet with Chris Matthews of the San
Francisco Examiner to discuss economic issues. Secretary Rubin
will also meet attend the Treasury Borrowing Advisory Committee
reception. On May 1, he will attend the monthly AFL
-CIO meeting,
give remarks at the kick
-off for Treasury's Savings Bonds
celebration, and participate in a Cox News roundtable. On May 3,
Secretary Rubin will meet with Chairman Greenspan.
Historically Black Colleges and Universities Capital Financing
Program: Treasury and Federal Financing Bank staff are currently
structuring the first HBCU financing -- a $4.5 million loan to
West Virginia State University.
Financial Action Task Force (FATF) Mission: On April 24, Ronald
Noble traveled to Turkey with FATF officials to encourage the new
Government of Turkey to pass anti
-money laundering legislation
expeditiously in compliance with FATF?s 40 Recommendations.
Gang Resistance Education and Training (GREAT) Day at Tiger
Stadium: On April 24, ATF Director John W. Magaw and about 1,200
GREAT program participants (including children, teachers, and
principals) were guests of the Detroit Tigers baseball team at
GREAT day at the ballpark. Director Magaw threw out the first
pitch before the game, which honored the children for their
involvement in this anti
-gang program.
Customs Seizure: On April 25, Customs Commissioner George Weise
held a press conference to announce the seizure of 3,000 pounds
of cocaine in Laredo, TX. The seizure is the result of Operation
Hardline, an enforcement program set up along the Southwest
Border last year.
Secret Service Recovers Coin: On February 8, Secret Service
special agents seized a rare gold coin and arrested the persons
who were illegally trying to sell it. The $20 coin, which was
banned by President Franklin Roosevelt before it was to be issued
publicly by Treasury in 1933, could be worth $1.5 million. Since
the initial arrest, the criminal charges have been dropped, but
the Justice Department is attempting to confiscate the coin as
stolen property, and return it to the US government.
Anti
-terrorism Training: From April 15 through May 3, 18
Egyptian military personnel will attend an anti
-terrorism class
where they will receive training on methods of defending against
assassination attacks, bomb searches, motorcade operations and
defense, and firearms training.
Egmont Group Meets: On April 22 and 23, the third meeting of the
Egmont Group, an international conference of financial
intelligence units, took place in San Francisco. The purpose of
the meeting, which included participants from 27 countries and 5
international organizations, was to discuss issues relating to
exchange of information, related technical matters, and training.
Financial Crimes Enforcement Network (FinCEN) Visits: On April
24, FinCEN Director Morris met with the Director General of the
National Criminal Intelligence Service (the U.K. counterpart
agency of FinCEN) regarding bilateral cooperation and information
exchange. On April 26 and 27, FinCEN will host visitors from a
number of foreign counterpart agencies including the heads of
financial intelligence units from the Netherlands, Spain,
Slovenia, and China.
Currency Redesign: The Federal Reserve System, at Treasury's
request, conducted a survey to gauge merchants? awareness and
acceptance of the new $100 note. Ninety
-nine percent of the 340
merchants polled said they were aware of the new note.
Ninety
-six percent said they currently accept new notes. Of the
15 respondents who said they are not accepting the new $100 note,
all said they do not accept large denominations as a standard
business practice; two had simply not been presented a new bill
yet; leaving only two merchants who were not accepting the
redesigned bill.
IRS on the Internet: During filing season, the IRS Internet site
received more than 25 industry awards from sources such as
Netscape, USA Today, Tax World, Money, PBS, and PC Computing
Magazine. On April 15, visitors contacted the IRS site 1.87
million times and downloaded more than 104,000 files. Since
January 8, the IRS has received more than 53.8 million accesses
to its site.
Duty
-free Stores: Customs has published a proposed regulation
that would ease the recordkeeping burden on duty
-free stores by
allow them to maintain their own records, as opposed to Customs
forms. These records would still need to be supplied to Customs
on Customs? request for periodic supervision and auditing.
AGENCY WORK ON PRESIDENTIAL INITIATIVES
Presidential Awards for Excellence in Microenterprise
Development: In preparation for the May 2 launching of the
Presidential Awards for Excellence in Microenterprise
Development, Treasury staff met with White House staff to review
the outline and time frame of the program. The First Lady and
Secretary Rubin videotaped the formal announcement of the Awards
Program which will be shown at the annual conference of the
Association for Enterprise Opportunity (AEO) on May 2. In
addition, a brochure announcing the Awards Program is being
developed and will be distributed to attendees of the AEO
conference and mailed to other potential applicants and
interested parties. Awards are expected to be made this fall.
1996 National Drug Control Strategy: On April 29, the President
will announce the 1996 drug strategy in Miami. The first Cabinet
Council meeting on narcotics will be held in early May at the
White House to discuss the new strategy. Secretary Rubin will
attend both events.
District of Columbia: On April 18, the District of Columbia
delivered its revised financial plan to the Authority. The
Authority is currently reviewing the District's revised plan
which includes changes recommended by the Authority. An approved
plan will likely be in place by the end of June.
CONGRESSIONAL ACTIVITY
Savings Association Insurance Fund: On April 23, the House Rules
Committee voted to delete the Administration's SAIF solution from
the short
-term continuing resolution.
Continuing Resolution: The conference on the long
-term
continuing resolution was completed on April 24. The resolution
included two provisions for Treasury: an additional $45 million
was appropriated (without a restriction on the number of FTE?s)
for the CDFI fund; and the IRS Commission was expanded to include
four additional Members, bringing the new total to 17 members.
Senators Shelby and Kerrey agreed to engage in a colloquy about
the commission on the floor when the Senate considers the bill to
provide a legislative history that a report from the Commission
would not be issued prior to 1997. The House and Senate are
expected to complete action on the bill shortly.
Taxpayer Systems Modernization (TSM): Treasury staff is
reviewing the reports on TSM from the IRS that were requested in
the FY96 appropriation bill. These reports will be supplied to
the Committee prior to their markup which will occur in
mid
-to
-late May.
Health Insurance Reform: The Kennedy
-Kassebaum health insurance
reform legislation passed the Senate unanimously. In addition
to increasing the portability of health insurance for workers,
the Senate legislation contains a number of tax amendments. On a
phased
-in basis, it would increase from 30 percent to 80 percent
the amount of health insurance premiums that could be deducted by
self
-employed individuals. It also would provide tax incentives
for long
-term care insurance and favorable tax treatment for
accelerated death benefits. These provisions would be "paid for"
by taxing expatriates disallowing deductions for certain
corporate
-owned life insurance, repealing bad debt deductions for
thrifts, and tightening up the rules related to taxation of
foreign trusts.
Pension Reform: Treasury and White House representatives met
with House Democratic leadership staff to discuss strategy for
introduction of the Administration's pension reform proposals.
There is a good chance that House Democratic Leader Gephardt may
want to take the lead on this issue. Final drafting should occur
over the next week. We hope to meet with Senate leadership staff
before the end of the week.
Corporate Subsidy Review: Among the bills scheduled for markup
last week by the Senate Committee on Governmental Affairs was S.
1376, which, among other things, calls for a Commission to
examine corporate tax subsidies and to make recommendations for
their termination, modification, or retention. The Committee did
not get far enough down its agenda to act upon this proposal.
Chairman Stevens, however, indicated that matters that were not
taken up would be dealt with at the next markup of the Committee
that will occur sometime next month.
Taxpayer Bill of Rights: Treasury staff met with Senate tax
staff this week to discuss the idea of the Senate taking up the
Taxpayer Bill of Rights legislation under unanimous consent on
the Senate floor. Senate leadership, as well as Senators Pryor
and Grassley (the chief Senate sponsors), appear likely to agree
to this.
Ways and Means Oversight Subcommittee Hearing: On April 25,
Deputy Assistant Secretary for Tax Policy Cynthia Beerbower
testified on the following: issues relating to the use of
private collection agencies to collect delinquent Federal tax
debt; provisions in the Debt Collection Improvement Act of 1995
to enhance IRS's levy authority; and issues relating to Federal
tax refund offset authority for purposes of collecting delinquent
State tax debts. The IRS will address issues related to the
status of its accounts receivable inventory.
Tax Reform Hearings: On May 1, the House Ways and Means
Committee will hold a hearing to examine the impact on small
businesses of replacing the current tax system. On May 1, the
Committee will examine issues related to state and local
governments and tax
-exempt entities.
Southern Church Fires: Treasury's Office of Legislative Affairs
and ATF briefed Representative Conyers? staff on ATF's role in
investigating the Southern church fires. On April 12,
Representaive Conyers has requested hearings on the Southern
church fires. These hearings will most likely occur the first
week of May. The committee is still determining whether these
hearings should occur at the full or subcommittee level. They
will likely request Assistant Secretary Jim Johnson, Director
Magaw and a DOJ expert to testify.
Senate Judiciary Committee Hearings on ATF: The Senate Judiciary
Committee is plans to hold hearings which will focus on the
future role of the ATF and may cover some of the findings of
Treasury's review of the Good Ol? Boy Roundup. It is our
understanding that Senator Specter will have an active roll in
conducting these hearings and the Committee most likely will
request that the Secretary testify. We are working with Senator
Specter's staff to determine a date in June when these hearing
could occur.
Multilateral Development Institutions: On April 25, Under
Secretary for International Affairs Jeff Shafer appeared before
the House Banking Committee Subcommittee on International
Monetary Policy to testify on Treasury's FY97 authorization for
the international financial institutions. Testimony specifically
focused on the authorization request for U.S. participation in
IDA, the IMF's Enhanced Structural Adjustment Facility, the
African Development Bank and the Middle East Development Bank
(MEDBank).
New Arrangements to Borrow: Treasury staff is working with the
staffs to Senate Budget Committee Chairman Pete Domenici and
Ranking Democrat Jim Exon who are seeking to assist us in
securing an authorization and appropriation for the New
Arrangements to Borrow. Staffs to both Senators have approached
us with a means by which they could secure such authorization and
appropriation within the FY97 budget resolution.
Securities Reform: Treasury staff analyzed a new draft of the
margin section of the securities reform legislation before the
House Commerce Committee. It is substantially similar to the
proposal sent to Congress last August by SEC Chairman Levitt with
the support of the President?s Working Group. It would, however,
eliminate over two years all Federal Reserve margin regulation
over debt securities. Instead, it would give the SEC the
authority to set margin requirements for broker
-dealers. The
securities industry is likely to object to this provision.
Treasury officials met with SEC staff on both these provisions
and the preemption provisions.
The full Commerce Committee is now scheduled to consider the bill
next week. The Senate Banking Committee is expected to consider
its bill either just before or just after the Memorial Day
recess.
OCC Testimony: On April 30, OCC Comptroller Ludwig will testify
with other federal banking regulators before the House Banking
Committee on regulatory consolidation.
Testimony on Federal Budget and Financial Management Reform: On
April 23, Assistant Secretary for Management George Munoz
testified on government
-wide financial management before
Representative Horn's Committee on Government Reform and
Oversight, Subcommittee on Government Management, Information and
Technology.
Financial Modernization: Since the Supreme Court's Barnett
decision (which held that states cannot bar national banks from
conducting insurance activities authorized by the National Bank
Act), Representative Leach has been working to develop compromise
insurance language that would help jump
-start his Glass
-Steagall
bill.
SECRETARY RUBIN'S SCHEDULE
April 29
Participate in President's Announcement of Drug
Strategy
April 30
Address Representative Hinchey's Business Day
Seminar
Interview with Michael Jackson on KBAC Radio
Meet with Chris Matthews of the San Francisco
Examiner
Attend the Treasury Borrowing Advisory Committee
Reception
May 1
Attend AFL
-CIO Meeting
Address Treasury's Savings Bonds Kick
-Off
Celebration
Attend Cox News Lunch Roundtable
May 3
Meeting with Chairman Greenspan
FOIA REQUESTS
Freedom of Information Act ("FOIA"): Treasury's Office of Market
Finance continues to work on a response to a FOIA request from
U.S. News and World Report concerning options considered by
Treasury to avoid default during the debt limit impasse.
USA Today: USA Today sent Customs a Freedom of Information Act
(FOIA) request for correspondence between Customs and GSA about
security in the Reagan Building where Customs is to move next
year. The newspaper also asked to interview the Commissioner on
this subject. USA Today reports that they understand Customs has
objected to GSA's plan to allow underground parking for
commercial enterprises.
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Ellen S. Seidman ( SEIDMAN_E) (OPD)
CREATION DATE/TIME:29-APR-1996 09:08:12.78
SUBJECT: Gas tax
TO: Laura D. Tyson
(TYSON_L) Autoforward to: Thomas O'Donnell
( ODONNELL_T)
(WHO)
READ:29-APR-1996 14:51:48.76
TO: Gene B. Sperling
(SPERLING_G) Autoforward to: Daniel Taberski
(TABERSKI_D)
(WHO)
READ:29-APR-1996 09:11:07.71
TO: Dan Tarullo
(TARULLO_D) (OPD)
READ:29-APR-1996 16:32:48.22
CC: Daniel Taberski
(TABERSKI_D) (OPD)
READ:29-APR-1996 09:11:07.71
CC: Thomas O'Donnell
( ODONNELL_T) (WHO)
READ:29-APR-1996 14:51:48.76
CC: Dena B. Weinstein
( WEINSTEIN_D (WHO)
READ:29-APR-1996 11:01:07.07
TEXT:
I'm concerned that we're getting sucked into really bad policy -- and bad
politics -- with respect to the repeal of the 4.3 cent gas tax. Here are my
concerns:
1. It's abysmal environmental policy, and our support of it will be
regarded by environmentalists, who swallowed hard at the increase in the speed
limit and no CAFE increases, as demonstrating a complete and total lack of
interest in the climate change issue when it encounters the least political
resistance. Yes, I know they don't have anywhere to go, but it's better to have
them with us than making trouble.
2. It's pure corporate welfare. Can anyone seriously believe that gas
prices will go DOWN immediately and uniformly by 4.3 cents if this tax is
repealed? (Sure, they'll go down around Labor Day, but that's not what the
Republicans or we if we went along with it -- are promising.) No, the money
will simply go from the government to the oil companies. You will recall that
the price did not go up by 4.3 cents when the tax was imposed -- it went up by
much more. I can't prove it, but I strongly suspect that what the oil companies
are doing is a little like what a company does when it has a really bad year --
piling it on. If the spot price increase dictates a 5 cent increase, many of
the companies in many of their stations are raising it 6 or 7 cents. And a look
at local gas prices will show that the price for regular ranges from about $1.27
to $1.37, within a block, which strongly suggests an elasticity of substantially
less than one.
3. While Markey's suggestion of an excess profits tax would answer the
corporate welfare issue, it has a snowball's chance in hell, not the least
because Markey has proposed it. It also doesn't answer the environmental issue.
4. If, God forbid, we actually decided to go along with this, it's a
tax bill Republicans want. Why not get some good stuff on it, like pension
reform, putting back the airline tax, etc.
I've mentioned this to Dan this morning.
Ellen
RECORD TYPE: PRESIDENTIAL (XCHANGE MAIL)
CREATOR: Shirley Chater ( CN=Shirley Chater/OU=WHO/O=GOV [SSA])
CREATION DATE/TIME: 2-MAY-1996 19:02:34.00
SUBJECT: Weekly Report
TO: LeeAnn Inadomi ( CN=LeeAnn Inadomi/OU=WHO/O=GOV @ WHO [ WHO ])
READ:UNKNOWN
TO: Dan Lipner ( CN=Dan Lipner/OU=WHO/O=GOV @ WHO [ WHO )
READ:UNKNOWN
TO: Mark Aromando ( CN=Mark Aromando/OU=WHO/O=GOV @ WHO [ WHO ])
READ:UNKNOWN
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
PRINTER FONT 12_POINT_COURIER
May 2, 1996
MEMORANDUM FOR THE HONORABLE LEON PANETTA
FROM : Shirley S. Chater
Commissioner of Social Security
SUBJECT: Social Security Administration's Weekly Report--
May 6
-17, 1996-
-INFORMATION
KEY AGENCY NEWS
o
Meeting of Social Security Advisory Board: The Social
Security Advisory Board meeting, originally scheduled for
April 25 and 26, has been rescheduled for May 16 and 17 in
Washington, D.C. The seven
-member Board was established to
advise the Commissioner on policies related to the Social
Security programs. It was created when the Social Security
Administration was established as a separate, independent
agency. It is chaired by former Senator Harlan Mathews. At
the meeting, the Board will be provided with an overview of
the Social Security disability programs.
o
General Accounting Office (GAO) Report "Supplemental
Security Income: Some Recipients Transfer Valuable Assets to
Qualify for Benefits:" This report was released on
April 30. The review was requested by Representatives
Nancy Johnson, and Clay Shaw, House Committee on Ways and
Means. It is a spinoff of an earlier GAO survey dealing
with fraud, waste and abuse in the SSI program.
The objectives of this study were to determine: (1) to what
extent SSI recipients have reported resource transfers and
SSA's efforts to detect unreported and under reported
transfers; (2) how SSA and State Medicaid agencies notify
each other of resource transfer cases and whether these
notifications are occurring in a timely manner; and (3) the
number of recipients who have benefitted from the
elimination of the SSI transfer penalty.
GAO found that: (1) resource transfers are increasing;
(2) recipients are transferring resources worth millions of
dollars; and (3) recipients are transferring resources while
qualifying for millions of dollars in SSI and other
benefits.
GAO concluded that eliminating the SSI transfer of resource
restriction has resulted in increased program costs. GAO
further concluded that an SSI restriction, similar to the
current medicaid restriction, could save millions in SSI
program expenditures by delaying individuals' date of
eligibility for benefits.
GAO recommends that Congress consider reinstating an SSI
transfer
-of
-resource restriction. The restriction could be
calculated in a way that takes into account the value of the
resource transferred so that individuals transferring more
valuable resources would be ineligible for SSI benefits for
longer periods of time than those who transfer less valuable
resources.
There are no recommendations for SSA in the report.
o
Office of Inspector General (OIG) Report on "Effectiveness
in Obtaining Records to Identify Prisoners:" During the
week of May 6, it is expected that SSA's OIG will release
its report on the suspension of Social Security and
Supplemental Security Income benefits to prisoners. OIG
indicates that SSA has achieved only limited success in
obtaining prisoner information from correctional
institutions; for example, about one
-half of State
corrections departments were not submitting information in
accordance with their agreements with SSA during the period
of the study. OIG notes that SSA does not have enforcement
or sanctioning authority to ensure compliance with
agreements. OIG offers both administrative and legislative
recommendations geared to improving the process for
obtaining prisoner data.
SSA's response makes it clear that the Agency has taken
significant action to address this problem. SSA now has
agreements with almost all 3,500 Federal, State and local
correctional institutions. It has recently asked for
complete tapes from all 50 States to doublecheck prison
records against SSA's beneficiary file. And, it has
recommended legislation that will give financial incentives
to correctional institutions for submitting data as a way to
ensure timely compliance with agreements. SSA believes
these actions will correct many of the deficiencies found in
the prisoner suspension process and will ensure that
prisoners are quickly suspended from the Social Security
rolls. It is expected that this report may generate media
interest.
In addition, on May 6, SSA will release to the press the
findings of its internal review of the circumstances under
which benefits continued to be paid to a prisoner on death
row at a California State prison. The review shows that an
alert was generated from information furnished by the State
authorities but that the prisoner's benefits were not
suspended due to human error. SSA expects media interest,
especially in California.
CONGRESS
o
Public Pension Reform Caucus of the U.S. House of
Representatives: The Public Pension Reform Caucus has asked
that Commissioner Chater meet with them on May 14 to discuss
the upcoming Advisory Council Report. The Caucus, formed
approximately 18 months ago, is comprised of 20 Republican
Members of Congress and nine conservative Democrats who
favor privatizing the Social Security program. Former
Commissioner Dorcas R. Hardy also is scheduled to meet with
this group the same day. The meeting is informal and not
open to the press or the public.
MEDIA/PRESS INTEREST
o
Custody Dispute To Be Featured on 60 Minutes: Sometime in
the next several weeks, 60 Minutes may air a segment
involving a custody dispute over two children receiving
Social Security survivor's benefits. The children currently
live with their stepmother in London, England, where she has
been receiving Social Security checks on their behalf. The
children had previously been removed from the natural
mother's home in the United States following allegations of
neglect.
COMMISSIONER'S SCHEDULE
o
On May 6, Commissioner Chater will be in Madison, Wisconsin
at the University of Wisconsin. The Commissioner will
address the LaFollette Institute of Public Affairs on the
Future of Social Security. She will also meet with the
Editorial Board of the Wisconsin State Journal.
On May 9, Commissioner Chater will be in Dallas, Texas to
deliver the keynote speech at the Executive Women of Dallas
luncheon.
o
On May 11 and 12, Commissioner Chater will be at the
University of Indiana in Indianapolis. The Commissioner
will be the commencement speaker and receive an honorary
Doctor of Science degree.
o
On May 13, Commissioner Chater will be in Indiana visiting
local Social Security field offices with Congressman
Andy Jacobs.
o
On May 16, Commissioner Chater will attend, as a special
guest, a National Academy of Social Insurance meeting
Co
-Chaired by Senator Moynihan, Lane Kirkland, Alexander
Copeland, and Teresa Heinz. Later, she will attend the
Senior Executive Service Rank Awards Dinner at the State
Department.
ACTING PRINCIPAL DEPUTY COMMISSIONER'S SCHEDULE
From May 7
- 10, Acting Principal Deputy Commissioner
John Dyer will be in Geneva, Switzerland representing the
Social Security Administration at a meeting of the
International Social Security Association.
On May 14, Acting Principal Deputy Commissioner Dyer will be
in Dallas, Texas participating in a Health Care Financing
Administration meeting on Planning for the Future.
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (XCHANGE MAIL)
CREATOR: Shirley Chater ( CN=Shirley Chater/OU=WHO/O=GOV [ SSA
CREATION DATE/TIME:10-MAY-1996 16:30:00.00
SUBJECT:
TO: Dan Lipner ( CN=Dan Lipner/OU=WHO/O=GOV @ WHO [ WHO 1)
READ:UNKNOWN
TO: Stephen B. Silverman ( CN=Stephen B. Silverman/OU=WHO/O=GOV @ WHO [ WHO )
READ:UNKNOWN
TO: Mark Aromando ( CN=Mark Aromando/OU=WHO/O=GOV @ WHO [ WHO )
READ:UNKNOWN
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE: 0 00:00:00.00
TEXT:
PRINTER FONT 12_POINT_COURIER
May 9, 1996
MEMORANDUM FOR THE HONORABLE LEON PANETTA
FROM : Shirley S. Chater
Commissioner of Social Security
SUBJECT: Social Security Administration's Weekly Report--
May 13
-24, 1996-
-INFORMATION
KEY AGENCY NEWS
o
Meeting of Social Security Advisory Board: The Social
Security Advisory Board meeting, originally scheduled for
April 25 and 26, has been rescheduled for May 16 and 17 in
Washington, D.C. The seven
-member Board was established to
advise the Commissioner on policies related to the Social
Security programs. It was created when the Social Security
Administration was established as a separate, independent
agency. It is chaired by former Senator Harlan Mathews. At
the meeting, the Board will be provided with an overview of
SSA?s final FY 1996 budget and FY 1997 budget proposal as
well as the Agency?s communications plan to help rebuild
public confidence in the Social Security program.
o
GAO Final Report, ?SSA Disability: Program Redesign
Necessary to Encourage Return to Work:? Conducted at the
request of the Senate Special Committee on Aging, this
review's objective was to determine why very few
beneficiaries who receive Social Security Disability
Insurance and/or Supplemental Security Income benefits have
left the rolls by returning to work. GAO believes that
advances in technology and a trend toward including the
disabled into the mainstream have created return
-to
-work
potential. GAO recommends that SSA place greater priority
on return
-to
-work, and that SSA develop a set of legislative
proposals. GAO expects to be asked to testify before the
Senate Special Committee on Aging in about two weeks and
would release the report shortly thereafter.
CONGRESS
o
Public Pension Reform Caucus of the U.S. House of
Representatives: The Public Pension Reform Caucus has asked
that Commissioner Chater meet with them on May 14 to discuss
the upcoming Advisory Council Report. The Caucus, formed
approximately 18 months ago, is comprised of 20 Republican
Members of Congress and nine conservative Democrats who
favor privatizing the Social Security program. Former
Commissioner Dorcas R. Hardy also is scheduled to meet with
this group the same day. The meeting is informal and not
open to the press or the public.
MEDIA/PRESS INTEREST
o
Custody Dispute To Be Featured on 60 Minutes: Sometime in
the next several weeks, 60 Minutes may air a segment
involving a custody dispute over two children receiving
Social Security survivor's benefits. The children currently
live with their stepmother in London, England, where she has
been receiving Social Security checks on their behalf. The
natural father and stepmother lived overseas with the
children before the natural father?s death. The children
had previously been removed from the natural mother's home
in the United States following allegations of neglect.
FOIA REQUESTS
o
Request for Clinton Transition Team Papers: Mr. Jay Gourley
of McLean, Virginia requested any Clinton Transition Team
papers and related documents which SSA has in its
possession. Mr. Gourley stated that he is a journalist but
does not indicate affiliation with any publications.
o
CBS NEWS requested contracts/agreements for Opinion Polls:
CBS NEWS has requested information regarding
contracts/agreements between SSA and any private individual,
company or non
-governmental organization to conduct public
opinion polls, focus groups or discussion groups with
non
-governmental personnel regarding SSA?s activities or
programs including the results of the polls and documents
pertaining to the hiring process.
COMMISSIONER'S SCHEDULE
On May 11 and 12, Commissioner Chater will be at the
University of Indiana in Indianapolis. The Commissioner
will be the commencement speaker and receive an honorary
Doctor of Science degree.
On May 13, Commissioner Chater will be in Indiana visiting
local Social Security field offices with Congressman
Andy Jacobs.
On May 16, Commissioner Chater will attend, as a special
guest, a National Academy of Social Insurance meeting
Co
-Chaired by Senator Moynihan, Lane Kirkland, Alexander
Copeland, and Teresa Heinz. Later, she will attend the
Senior Executive Service Rank Awards Dinner at the State
Department.
o
On May 18 and 19 Commissioner Chater will attend the
Binghamton University commencement ceremony in Binghamton,
New York. She will meet with University officials, deliver
the Commencement Address and receive an Honorary Doctorate
of Humane Letters.
o
On May 22, Commissioner Chater will be in Denver, Colorado
to speak at the American Association of Retired Persons
(AARP) biennial convention. The Commissioner will
participate in a session on defining entitlement.
ACTING PRINCIPAL DEPUTY COMMISSIONER'S SCHEDULE
o
On May 14, Acting Principal Deputy Commissioner Dyer will be
in Dallas, Texas participating in a Health Care Financing
Administration meeting on Planning for the Future.
END ATTACHMENT 1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: David S. Beaubaire (BEAUBAIRE_D) (WHO)
CREATION DATE/TIME:20-JUN-1996 17:43:25.58
SUBJECT: dol again
TO: Daniel L. Lipner
(LIPNER_D) (WHO)
READ:20-JUN-1996 17:43:54.25
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE:20-JUN-1996 18:13:00.00
ATT BODYPART TYPE:E
ATT CREATOR: Hubbard Bibb
ATT SUBJECT: DOL WH Report
ATT TO: David S. Beaubaire
(BEAUBAIRE_D@A1@CD)
ATT TO: Loreen M. Keller
( KELLER_L@AI@CD)
TEXT:
[[ whrpt618 : 4358 in whrpt618. ]]Here is DOL's weekly report. Please call
me with any questions or problems. Thanks!
<WP Attachment Enclosed>
END ATTACHMENT 1
ATTACHMENT 2
ATT CREATION TIME/DATE:20-JUN-1996 17:27:00.00
ATT BODYPART TYPE:p
TEXT:
PRINTER FONT 12 POINT ROMAN
MEMORANDUM FOR KITTY HIGGINS
SECRETARY TO THE CABINET
FROM:
ROBERT B. REICH
SECRETARY OF LABOR
SUBJECT:
WEEKLY REPORT
WEEK OF MONDAY, JUNE 17, 1996
DATE:
Thursday, June 20, 1996
I. HEADLINES
McDonnell
-Douglas -- As of June 20, no talks have been held and
none are scheduled in the two
-week old strike by nearly 7,000
workers represented by the Machinists union at St.Louis area
plants of McDonnell Douglas. On June 12, the military aircraft
maker, which has continued operations with supervisory and other
nonunion personnel, announced its intention to hire temporary
replacements and to move some production to other company sites.
The strike began on June 5, three days after the membership of
District 837 rejected a proposed four
-year contract by a 6
margin. Outsourcing and job security are the principal issues in
dispute.
Yale University Strike -- On June 14, representatives of Yale
University and Locals 34 and 35 of the Hotel Employees and
Restaurant Employees held their first bargaining session since
May 29. The meeting focused on the six
-year contracts proposed
by the university, and specifically on their salary and retiree
health benefit provisions. No date was set for another meeting.
Lockheed Martin -- On June 19, The Pension Benefit Guaranty
Corporation (PBGC) collected more than $415,000 from Lockheed
Martin Corp. for underpaid insurance premiums. The payment
covers underpaid premiums and late payment penalties and interest
owned by the former Martin Marietta Corp. before it merged with
Lockheed Corp. Martin Marietta had, by mistake, underreported
the number of participants in three different plans during the
years 1990
-94, and when informed of the error, immediately paid
the owed amount.
II. KEY DEPARTMENT NEWS
Foreign Guestworkers -- As of June 18, the Atlanta Committee on
the Olympics (ACOG) had not filed any of its 8 H
-2B foreign
guestworker applications (equaling 38 jobs) with the Georgia
Employment Service. Representatives from the Employment and
Training Administration (ETA) met with ACOG on May 24th in
Atlanta, and again on June 3rd in Washington, to ascertain the
exact number of H
-2B applications ACOG would be filing with the
Georgia Employment Service agency ( that ETA would ultimately
process), and to reiterate the message from ETA's Assistant
Secretary's March 5 and May 3 letters to ACOG that their delay in
filing H
-2B applications could result in denial of H
-2B foreign
guestworker labor certification applications. The H
-2B process
is critical to protecting the interests of US workers. ETA is
still committed to processing the applications as efficiently as
possible.
ERISA -- On June 17, the Government filed a brief as amicus
curiae in California Division of Labor Standards Enforcement V.
Dillingham Construction. The Government argued that the Employee
Retirement Income Security Act does not preempt a state
prevailing wage law that requires payment of prevailing
journeymen wage rates to employees in apprenticeship programs
that have not received state approval, but allows payment of
lower apprenticeship wages to employees in state
-approved
programs.
Imprisonment for 1989 Mine Fatality -- On June 12, a former
superintendent of Pyro Mining Company was sentenced to 18 months
and a former longwall section foreman was sentenced to five
months imprisonment for violations that were uncovered following
a September, 1989 mine explosion that killed 10 miners. In sum,
14 members of Pyro management have been successfully prosecuted
on 50 misdemeanor and 12 felony violations related to the
disaster. Additionally, Pyro Mining Company paid $3.75 million
in criminal and civil fines.
Economic Integration -- DOL has been chosen by the Government of
Bosnia
-Herzegovina to develop a World Bank funded program for
reintegrating demobilized Muslim, Croat, and Serb soldiers into
the civilian economy. A DOL negotiating team will be in Sarajevo
the week of June 23 and technical assistance activities will
begin soon thereafter.
Strike Activity --
Safeway and King Soopers Stores -- On June 13, negotiations
resumed between the chains and Local 7 of the United Food and
Commercial Workers as the work stoppages at King Soopers and
Safeway stores in Denver and Colorado Springs entered into their
second month. These talks, the first since May 29, reportedly
are focusing on the stores' meat cutters and deli workers. Both
chains have been operating on reduced schedules since the
strike/lockout began, using mainly supervisory personnel and
temporary replacement workers. Since early June, the stoppages
have covered the area from Pueblo to Fort Collins.
Shutdown of Pennsylvania Oil Refinery Continues -- On June 17,
top officials of the Tosco Corporation and Robert Wages,
President of the Oil, Chemical and Atomic Workers Union
(OCAW), met in Washington at the invitation of FMCS Director John
C. Wells in an effort to generate movement toward resolution of a
dispute which led to the January 31 shutdown of Tosco's oil
refinery at Marcus Hook, Pennsylvania. About 320 workers
represented by the OCAW were idled by the closure which followed
their rejection of work rule changes proposed by management. No
date was set for another meeting.
Extensions for Presidential Emergency Boards -- The three
presidential emergency boards appointed in the current round of
railroad negotiations have received extensions to complete their
investigations and prepare their reports. The boards named to
help resolve the disputes involving the
Transportation
-Communications International Union and the
Brotherhood of Maintenance of Way Employees are expected to
present their reports to the president on June 23, while the
board handling the disputes involving the Machinists, the
International Brotherhood of Electrical Workers, the Sheet Metal
Workers, and the Railroad Signalmen is scheduled to deliver its
report on June 24. Under the provisions of the Railway Labor
Act, the parties are prohibited from resorting to "self
-help"
measures for thirty days following submission of these reports.
Janitors in California -- Negotiations are continuing between
Service Employees Local 1877 and cleaning companies in
California's Alameda, Contra Costa, San Mateo, and Santa Clara
counties. Talks resumed on June 7 following a series of one
-day
protests at area high
-tech and commercial buildings. Contracts
covering the 5,000 workers represented by the union expired on
May 31.
Enforcement Summary --
Discrimination Settlements On June 7, Stone & Webster
Engineering Corporation (Houston, TX) entered into a conciliation
agreement to remedy disparate treatment of six minority
applicants for engineering and design positions, one minority
female promotion, and salary compensation disparities of six
minorities currently in engineering and designer positions. The
total financial settlement of $742,525, includes $280,735 in back
wages.
As a result of a joint initiative with the U.S. Border Patrol,
DBM, a janitorial business in Miami, FL, cleaning K
-Mart stores,
paid more than $13,600 in minimum wage and overtime back wages to
44 employees.
31
- W Insulation, a construction insulation firm headquartered in
Nashville, TN, agreed to pay more than $347,700 in back wages to
568 employees and civil money penalties of $227,200 for unpaid
overtime.
Garment -- On June 3, J.C. Penney issued a directive stating that
any suppliers found to be violating domestic or foreign labor
laws would be suspended until the suppliers employed a monitoring
program to ensure all its goods are produced legally.
On June 11, Talbot's notified its suppliers that they must
monitor their subcontractors as a condition for doing business
with this major retailer.
Litigation
-Related Activities -- On June 12, the Department
announced that an administrative law judge ordered Baystate
Alternative Staffing, Inc., of Fitchburg, MA, and Able Temps
Referrals, Inc. of Worcester, MA, to pay $150,000 in civil money
penalties for willful violations of the overtime provisions of
the Fair Labor Standards Act. A case is pending seeking the
recovery of $280,000 in back wages for 619 day laborers whom the
firms classified as "independent contractors".
An investigation involving Eastco Building Services, Inc., a
janitorial firm in Deer Park, NY, was referred to the RSOL for
the collection of more than $212,000 in back wages for 161
low
-wage workers who were not paid overtime.
III. AGENCY WORK ON PRESIDENTIAL INITIATIVES
CAREERS Act Conference: Assistant Secretary Barnicle continues to
participate in the Administration's efforts to resolve
outstanding issues on this Conference legislation. Various
publications are now reporting that Senate Chair Kassebaum and
House Chairman Goodling may move a bill out of Conference without
bipartisan support, and without addressing the Administration's
serious concerns.
IV. NOTABLE CONGRESSIONAL ACTIVITY
Pension Reform -- On June 26, Olena Berg, Assistant Secretary for
Pension and Welfare Benefits, will testify before the
Subcommittee on Employer
-Employee Relations of the House
Committee on Economic and Educational Opportunities on the topic
of "Issues in Pension Reform."
ERISA -- On June 26, the Senate Labor and Human Resources
Committee, Chairman Kassebaum (R
-KS), is expected to mark
-up
pension legislation, S. 1400, the ERISA Clarification Act. S.
1400 is intended to resolve important issues arising from the
Supreme Court's decision in John Hancock Mutual Life V. Harris
Trust and Savings Bank. This legislation is necessary to avoid
disruption in the insurance industry.
Fair Labor Standards Act -- On June 14, John Fraser participated
in a meeting with minority staff of the Senate Labor and Human
Resources Committee regarding compensation time and other issues
related to the Fair Labor Standards Act proposed minimum wage
increase.
BECK -- On June 19, the House Subcommittee on Employer
-Employee
Relations held a hearing on H.R. 3580, the Worker Right to Know
Act. The proposed legislation would force unions to obtain the
consent of its members before using union dues or non
-member
agency fees for non
-collective bargaining purposes; in addition,
the legislation would require unions to report the amount of
funds used for collective and non
-collective bargaining purposes.
Davis
-Bacon -- On June 20, GAO testified at a joint hearing
before the House Economic and Education Opportunities Committee,
the Workforce Protection Subcommittee and Oversight and
Investigations Subcommittee and supported their findings that
there is potential for Davis
-Bacon fraud in the system. DOL has
agreed to implement GAO's recommendations. GAO acknowledged that
the fraud could result in either short changing workers or over
charging the federal government. Brenda Reneau, Labor
Commissioner for Oklahoma, repeated her previous charges that
there was fraud in certain wage rates in Oklahoma and that DOL
was not cooperating with her. She asked the Subcommittee to
suspend the Davis
-Bacon law in Oklahoma until these issues are
resolved. The minority members expressed concern that the
Administration had not been asked to testify at the hearing.
Chairman Ballenger agreed to provide an opportunity for the
Department of Labor to respond on record at a future hearing.
V. SECRETARY?S SCHEDULE
Family Reunion V Conference -- On June 24, Secretary Reich will
participate in the Vice President's Family Reunion V Conference
afternoon panel with the Vice President, Secretary Riley,
Administrator Lader, Assistant to the President Rasco, and
Director King. In addition, the Secretary, along with Acting
Director of the Women's Bureau, will accept a Hammer Award from
the Vice President for the Women's Bureau successful Honor Roll
initiative.
*note* Monday, June 24 is Secretary Reich's 50th birthday.
Out of School Youth Demonstration Grants -- On June 27, the
Secretary will announce three $3 million Out of School Youth
demonstration grants which will be awarded to locations that are
designated as empowerment zones/empowerment communities.
Title III Employment and Training Grants -- During the week of
June 24, the Secretary will announce several Employment and
Training Administration Title III grants due to the ending of
Program Year '96 on June 30 for ETA.
International Child Labor -- On June 28, Secretary Reich and the
Department's Bureau of International Labor Affairs (ILAB) will
hold public hearings to gather information regarding the use of
abusive or exploitative child labor in the production of goods
imported into the United States. DOL is in the process of
working on a third congressionally mandated report on
international child labor and will use the hearing to help
prepare that report. The report will focus on efforts by U.S.
companies and nongovernmental agencies aimed at eliminating the
use of abusive or exploitative child labor in the production of
goods imported in the U.S., and will look specifically at codes
of conduct in the garment sector. The hearings will be open to
the public and press. Prior to the public hearing, Secretary
Reich will hold a press conference.
VI. SUB
-CABINET SCHEDULE
On June 11, Wage and Hour staff met with Mr. Henry Herng
-yuh
Chang, an economist with Taiwan's Manpower Planning Department,
to discuss Wage and Hour programs. Mr. Chang's agency has
responsibility for determining Taiwan's minimum wage level.
On June 12, Olena Berg, Assistant Secretary for the Pensions,
Welfare and Benefits Administration, spoke at a forum sponsored
by the Government Law Center of Albany Law School and the New
York State and Local Retirement Systems. Approximately 300 New
York State leaders representing labor, business, government, and
retirees attended. She spoke on impediments and opportunities
for investing for the future.
On June 18, Ida Castro, Acting Director of the Women's Bureau,
and Rene Redwood, Special Assistant to the Secretary visited the
New York City Police Department's Women's Leadership Forum. She
spoke with women police officers, and top women leaders and
advocates in New York City about developing solutions to the
concerns working women have such as balancing work and family
and sexual discrimination. Director Castro also discussed the
Women's Bureau's "Don't Work in the Dark" public education
campaign.
On June 18, Acting Director Castro gave the keynote address at
the "Going the Distance IV: Embracing the Future" luncheon at the
Support Center of New York's annual conference. Support Centers
provide assistance to non
-profits including training workshops
and consulting. Castro's remarks focused on the importance of
women's non
-profits and how government, businesses and
organizations can work together make the lives of workers and
their families better.
On June 18, Joe Dear, Assistant Secretary for the Occupational
Safety and Health Administration, received a Hammer Award in
Chicago, IL.
On June 18, Rene Redwood spoke to the American Woman?s Society of
Certified Public Accountants Annual Dinner in New York City.
On June 19 and 20, Olena Berg, Assistant Secretary for Pension
and Welfare Benefits, will be in New York City for several media
interviews and will visit PWBA's regional office.
On June 19, 20 and 21, Assistant Secretary for Veterans'
Employment and Training, Preston Taylor, is participating in the
Veterans? Employment and Training Service in Breckenridge,
Colorado.
On June 20, Rene Redwood spoke to the Coalition of Urban
Metropolitan Universities 4th annual conference regarding "Urban
and MetropolitanUniversities Face a New Millennium" in Orlando,
FL.
On June 21, in Cleveland, OH, Assistant Secretary for the
Employment and Training Administration Tim Barnicle will address
the US Conference of Mayors' Employment and Training Council. He
will highlight in his luncheon speech: CAREERS Act Conference
status; Out
-of
-School Youth proposal; budget and appropriations
issues; and other issues. While at the USCM Conference,
Assistant Secretary Barnicle will also participate in a
roundtable discussion workshop entitled "Connecting Disconnected
Kids" with Mayors, Service Delivery Area Directors, and
academics in this field.
On June 21, in New Haven CT, Deputy Assistant Secretary for the
Employment and Training Administration Ray Uhalde, will attend
both the One
-Stop Career Center ribbon
-cutting ceremony and the
new Job Corps Center opening. Both of these events are excellent
examples of successful ETA programs and investment of federal
funds.
On June 22, Assistant Secretary Taylor addressed the Vietnam
Veterans of America Region 2 Conference in Atlantic City, New
Jersey.
On June 24, Joseph A. Dear, Assistant Secretary for the
Occupational Safety and Health Administration will meet with
Pacific Maritime Association and the International Longshoremen?s
and Warehousemen?s Union in San Francisco, CA. On June 25, he
will give a presentation to the American Society for Safety
Engineers in San Diego, CA.
On June 25
-28, in Belfast Northern Ireland, Assistant Secretary
Tim Barnicle will participate in the Northern Ireland Growth
Challenge Employment and Training Workshop. The US State
Department Special Advisor on Ireland, as a component of the
peace initiative for Ireland, has organized a Workshop focused on
education, employment and training initiatives. Senator Mitchell
has asked Assistant Secretary Barnicle to be the lead US
participant for this Workshop, and Assistant Secretary Trish
McNeil from DOED will also be participating along with
representatives of US corporations, US job training providers,
and US labor organizations.
VII. PRESS
On June 11, Maria Echaveste, Director of the Wage and Hour
Division, was interviewed by Jim Berenstein of Newsday about our
garment program, Telemundo, and NBC Spanish News.
On June 12, Maria Echaveste was interviewed by Susan Warner of
the Philadelphia Inquirer about our garment program.
On June 12, Rene Redwood, spoke at a Washington Post forum
regarding, Women?s Issues and How They Manifest at a Newspaper;
What Are Some of the Current Issues Facing Women?
On June 13, Vice President Gore and Secretary Reich announced a
$1.4 Million Grant for Dislocated Defense Workers in Tennessee
(BRAC closure of the Department of Defense's Distribution Depot
in Memphis)
On June 13, Secretary Reich announced a $4 Million Grant for
Dislocated Timber Workers in Washington.
On June 17, Employment Standards Administration Assistant
Secretary Bernard E. Anderson was interviewed by the Bob Becker
Show and participated in a telephone call in on child labor
issues.
On June 18, Secretary Reich announced a grant to Rhode Island for
$2.3 million for ALMACS Workers. This is the second grant to go
these workers.
On June 19, Olena Berg, Assistant Secretary for the Pension,
Benefits and Welfare Administration will be interviewed by Smart
Money magazine in New York City. The interview will focus on the
following topics: pension simplification; women and pensions;
and retirement savings.
On June 19, Secretary Reich announced three grants to Ohio
equaling $1.7 million to assist dislocated defense workers
($746,186 for workers dislocated from the Defense Distribution
Depot in Columbus; $448,474 for workers dislocated from General
Dynamics Land Systems in Lima; and $555,304 to assist Ohio coal
workers).
On June 19, Olena Berg will be interviewed by Money Magazine in
New York City.
The interview will focus on the
following topics: pension simplification; women and
pensions; and retirement savings.
On June 20, it is possible that Olena Berg will be interviewed by
a NBC Dateline
researcher for background information on the topic of PWBA's
401(k) enforcement.
This interview will not be
confirmed until June 19.
On June 24, Ida Castro, Acting Director of the Women's Bureau
will speak with the Atlanta Journal Constitution regarding the
Working Women Count! Honor Roll.
On June Secretary Reich awarded a $16 million contract for
construction of the Idaho Job Corps Center in Nampa, Idaho.
VIII. FOIA REQUESTS
Mine Safety -- On June 4, John Boucher filed a FOIA request for
information on rent and ancillary building maintenance costs for
the Mine Safety and Health Administration's offices in Bruceton,
Pennsylvania, Triadelphia, West Virginia and Lakewood, Colorado.
Mr. Boucher also requested information on projected operating
costs for the Denver Technical Center if this office moved to
another floor at its current location or to the Federal Center in
Denver.
ABC News/Primetime Live -- On June 6, Stewart Harris, a Producer
from ABC News/Primetime Live, submitted a Freedom of Information
Act request, in which he is seeking "all correspondence
maintained by your agency and written by former Senator Robert
Dole on behalf of or regarding private citizens, corporations or
business interests."
END ATTACHMENT 2
ATTACHMENT 3
ATT CREATION TIME/DATE:20-JUN-1996 17:27:00.00
ATT BODYPART TYPE:D
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END ATTACHMENT 3
RECORD TYPE: PRESIDENTIAL (EXTERNAL MAIL)
CREATOR: [email protected]@INET@EOPMRX
CREATION DATE/TIME:20-JUN-1996 17:24:00.00
SUBJECT: DOL WH Report
TO: David S. Beaubaire
(BEAUBAIRE_D@A1@CD) (WHO)
READ:20-JUN-1996 17:36:25.11
TO: Loreen M. Keller
(KELLER_L@A1@CD) (WHO)
READ:20-JUN-1996 18:38:07.80
TEXT:
[[ whrpt618 : 4358 in whrpt618. ]]Here is DOL's weekly report. Please call
me with any questions or problems. Thanks!
<WP Attachment Enclosed>
ATTACHMENT 1
ATT CREATION TIME/DATE:20-JUN-1996 17:27:00.00
ATT BODYPART TYPE:p
TEXT:
PRINTER FONT 12_POINT_ROMAN
MEMORANDUM FOR KITTY HIGGINS
SECRETARY TO THE CABINET
FROM:
ROBERT B. REICH
SECRETARY OF LABOR
SUBJECT:
WEEKLY REPORT
WEEK OF MONDAY, JUNE 17, 1996
DATE:
Thursday, June 20, 1996
I. HEADLINES
McDonnell
-Douglas -- As of June 20, no talks have been held and
none are scheduled in the two
-week old strike by nearly 7,000
workers represented by the Machinists union at St.Louis area
plants of McDonnell Douglas. On June 12, the military aircraft
maker, which has continued operations with supervisory and other
nonunion personnel, announced its intention to hire temporary
replacements and to move some production to other company sites.
The strike began on June 5, three days after the membership of
District 837 rejected a proposed four
-year contract by a 6
-1
margin. Outsourcing and job security are the principal issues in
dispute.
Yale University Strike -- On June 14, representatives of Yale
University and Locals 34 and 35 of the Hotel Employees and
Restaurant Employees held their first bargaining session since
May 29. The meeting focused on the six
-year contracts proposed
by the university, and specifically on their salary and retiree
health benefit provisions. No date was set for another meeting.
Lockheed Martin -- On June 19, The Pension Benefit Guaranty
Corporation (PBGC) collected more than $415,000 from Lockheed
Martin Corp. for underpaid insurance premiums. The payment
covers underpaid premiums and late payment penalties and interest
owned by the former Martin Marietta Corp. before it merged with
Lockheed Corp. Martin Marietta had, by mistake, underreported
the number of participants in three different plans during the
years 1990
-94, and when informed of the error, immediately paid
the owed amount.
11. KEY DEPARTMENT NEWS
Foreign Guestworkers -- As of June 18, the Atlanta Committee on
the Olympics (ACOG) had not filed any of its 8 H
-2B foreign
guestworker applications (equaling 38 jobs) with the Georgia
Employment Service. Representatives from the Employment and
Training Administration (ETA) met with ACOG on May 24th in
Atlanta, and again on June 3rd in Washington, to ascertain the
exact number of H
-2B applications ACOG would be filing with the
Georgia Employment Service agency ( that ETA would ultimately
process), and to reiterate the message from ETA's Assistant
Secretary's March 5 and May 3 letters to ACOG that their delay in
filing H
-2B applications could result in denial of H
-2B foreign
guestworker labor certification applications. The H
-2B process
is critical to protecting the interests of US workers. ETA is
still committed to processing the applications as efficiently as
possible.
ERISA -- On June 17, the Government filed a brief as amicus
curiae in California Division of Labor Standards Enforcement V.
Dillingham Construction. The Government argued that the Employee
Retirement Income Security Act does not preempt a state
prevailing wage law that requires payment of prevailing
journeymen wage rates to employees in apprenticeship programs
that have not received state approval, but allows payment of
lower apprenticeship wages to employees in state
-approved
programs.
Imprisonment for 1989 Mine Fatality -- On June 12, a former
superintendent of Pyro Mining Company was sentenced to 18 months
and a former longwall section foreman was sentenced to five
months imprisonment for violations that were uncovered following
a September, 1989 mine explosion that killed 10 miners. In sum,
14 members of Pyro management have been successfully prosecuted
on 50 misdemeanor and 12 felony violations related to the
disaster. Additionally, Pyro Mining Company paid $3.75 million
in criminal and civil fines.
Economic Integration -- DOL has been chosen by the Government of
Bosnia
-Herzegovina to develop a World Bank funded program for
reintegrating demobilized Muslim, Croat, and Serb soldiers into
the civilian economy. A DOL negotiating team will be in Sarajevo
the week of June 23 and technical assistance activities will
begin soon thereafter.
Strike Activity --
Safeway and King Soopers Stores -- On June 13, negotiations
resumed between the chains and Local 7 of the United Food and
Commercial Workers as the work stoppages at King Soopers and
Safeway stores in Denver and Colorado Springs entered into their
second month. These talks, the first since May 29, reportedly
are focusing on the stores' meat cutters and deli workers. Both
chains have been operating on reduced schedules since the
strike/lockout began, using mainly supervisory personnel and
temporary replacement workers. Since early June, the stoppages
have covered the area from Pueblo to Fort Collins.
Shutdown of Pennsylvania Oil Refinery Continues -- On June 17,
top officials of the Tosco Corporation and Robert Wages,
President of the Oil, Chemical and Atomic Workers Union
(OCAW), met in Washington at the invitation of FMCS Director John
C. Wells in an effort to generate movement toward resolution of a
dispute which led to the January 31 shutdown of Tosco's oil
refinery at Marcus Hook, Pennsylvania. About 320 workers
represented by the OCAW were idled by the closure which followed
their rejection of work rule changes proposed by management. No
date was set for another meeting.
Extensions for Presidential Emergency Boards -- The three
presidential emergency boards appointed in the current round of
railroad negotiations have received extensions to complete their
investigations and prepare their reports. The boards named to
help resolve the disputes involving the
Transportation
-Communications International Union and the
Brotherhood of Maintenance of Way Employees are expected to
present their reports to the president on June 23, while the
board handling the disputes involving the Machinists, the
International Brotherhood of Electrical Workers, the Sheet Metal
Workers, and the Railroad Signalmen is scheduled to deliver its
report on June 24. Under the provisions of the Railway Labor
Act, the parties are prohibited from resorting to "self
-help"
measures for thirty days following submission of these reports.
Janitors in California -- Negotiations are continuing between
Service Employees Local 1877 and cleaning companies in
California's Alameda, Contra Costa, San Mateo, and Santa Clara
counties. Talks resumed on June 7 following a series of one
-day
protests at area high
-tech and commercial buildings. Contracts
covering the 5,000 workers represented by the union expired on
May 31.
Enforcement Summary --
Discrimination Settlements -- On June 7, Stone & Webster
Engineering Corporation (Houston, TX) entered into a conciliation
agreement to remedy disparate treatment of six minority
applicants for engineering and design positions, one minority
female promotion, and salary compensation disparities of six
minorities currently in engineering and designer positions. The
total financial settlement of $742,525, includes $280,735 in back
wages.
As a result of a joint initiative with the U.S. Border Patrol,
DBM, a janitorial business in Miami, FL, cleaning K
-Mart stores,
paid more than $13,600 in minimum wage and overtime back wages to
44 employees.
31
- -W Insulation, a construction insulation firm headquartered in
Nashville, TN, agreed to pay more than $347,700 in back wages to
568 employees and civil money penalties of $227,200 for unpaid
overtime.
Garment -- On June 3, J.C. Penney issued a directive stating that
any suppliers found to be violating domestic or foreign labor
laws would be suspended until the suppliers employed a monitoring
program to ensure all its goods are produced legally.
On June 11, Talbot's notified its suppliers that they must
monitor their subcontractors as a condition for doing business
with this major retailer.
Litigation
-Related Activities -- On June 12, the Department
announced that an administrative law judge ordered Baystate
Alternative Staffing, Inc., of Fitchburg, MA, and Able Temps
Referrals, Inc. of Worcester, MA, to pay $150,000 in civil money
penalties for willful violations of the overtime provisions of
the Fair Labor Standards Act. A case is pending seeking the
recovery of $280,000 in back wages for 619 day laborers whom the
firms classified as "independent contractors".
An investigation involving Eastco Building Services, Inc., a
janitorial firm in Deer Park, NY, was referred to the RSOL for
the collection of more than $212,000 in back wages for 161
low
-wage workers who were not paid overtime.
III. AGENCY WORK ON PRESIDENTIAL INITIATIVES
CAREERS Act Conference: Assistant Secretary Barnicle continues to
participate in the Administration's efforts to resolve
outstanding issues on this Conference legislation. Various
publications are now reporting that Senate Chair Kassebaum and
House Chairman Goodling may move a bill out of Conference without
bipartisan support, and without addressing the Administration's
serious concerns.
IV. NOTABLE CONGRESSIONAL ACTIVITY
Pension Reform -- On June 26, Olena Berg, Assistant Secretary for
Pension and Welfare Benefits, will testify before the
Subcommittee on Employer
-Employee Relations of the House
Committee on Economic and Educational Opportunities on the topic
of "Issues in Pension Reform."
ERISA -- On June 26, the Senate Labor and Human Resources
Committee, Chairman Kassebaum (R
-KS), is expected to mark
-up
pension legislation, S. 1400, the ERISA Clarification Act. S.
1400 is intended to resolve important issues arising from the
Supreme Court's decision in John Hancock Mutual Life v. Harris
Trust and Savings Bank. This legislation is necessary to avoid
disruption in the insurance industry.
Fair Labor Standards Act -- On June 14, John Fraser participated
in a meeting with minority staff of the Senate Labor and Human
Resources Committee regarding compensation time and other issues
related to the Fair Labor Standards Act proposed minimum wage
increase.
BECK -- On June 19, the House Subcommittee on Employer
-Employee
Relations held a hearing on H.R. 3580, the Worker Right to Know
Act. The proposed legislation would force unions to obtain the
consent of its members before using union dues or non
-member
agency fees for non
-collective bargaining purposes; in addition,
the legislation would require unions to report the amount of
funds used for collective and non
-collective bargaining purposes.
Davis
-Bacon -- On June 20, GAO testified at a joint hearing
before the House Economic and Education Opportunities Committee,
the Workforce Protection Subcommittee and Oversight and
Investigations Subcommittee and supported their findings that
there is potential for Davis
-Bacon fraud in the system. DOL has
agreed to implement GAO's recommendations. GAO acknowledged that
the fraud could result in either short changing workers or over
charging the federal government. Brenda Reneau, Labor
Commissioner for Oklahoma, repeated her previous charges that
there was fraud in certain wage rates in Oklahoma and that DOL
was not cooperating with her. She asked the Subcommittee to
suspend the Davis
-Bacon law in Oklahoma until these issues are
resolved. The minority members expressed concern that the
Administration had not been asked to testify at the hearing.
Chairman Ballenger agreed to provide an opportunity for the
Department of Labor to respond on record at a future hearing.
V. SECRETARY?S SCHEDULE
Family Reunion V Conference -- On June 24, Secretary Reich will
participate in the Vice President's Family Reunion V Conference
afternoon panel with the Vice President, Secretary Riley,
Administrator Lader, Assistant to the President Rasco, and
Director King. In addition, the Secretary, along with Acting
Director of the Women's Bureau, will accept a Hammer Award from
the Vice President for the Women's Bureau successful Honor Roll
initiative.
*note* Monday, June 24 is Secretary Reich's 50th birthday.
Out of School Youth Demonstration Grants -- On June 27, the
Secretary will announce three $3 million Out of School Youth
demonstration grants which will be awarded to locations that are
designated as empowerment zones/empowerment communities.
Title III Employment and Training Grants -- During the week of
June 24, the Secretary will announce several Employment and
Training Administration Title III grants due to the ending of
Program Year '96 on June 30 for ETA.
International Child Labor -- On June 28, Secretary Reich and the
Department's Bureau of International Labor Affairs (ILAB) will
hold public hearings to gather information regarding the use of
abusive or exploitative child labor in the production of goods
imported into the United States. DOL is in the process of
working on a third congressionally mandated report on
international child labor and will use the hearing to help
prepare that report. The report will focus on efforts by U.S.
companies and nongovernmental agencies aimed at eliminating the
use of abusive or exploitative child labor in the production of
goods imported in the U.S., and will look specifically at codes
of conduct in the garment sector. The hearings will be open to
the public and press. Prior to the public hearing, Secretary
Reich will hold a press conference.
VI. SUB
-CABINET SCHEDULE
On June 11, Wage and Hour staff met with Mr. Henry Herng
-yuh
Chang, an economist with Taiwan's Manpower Planning Department,
to discuss Wage and Hour programs. Mr. Chang's agency has
responsibility for determining Taiwan's minimum wage level.
On June 12, Olena Berg, Assistant Secretary for the Pensions,
Welfare and Benefits Administration, spoke at a forum sponsored
by the Government Law Center of Albany Law School and the New
York State and Local Retirement Systems. Approximately 300 New
York State leaders representing labor, business, government, and
retirees attended. She spoke on impediments and opportunities
for investing for the future.
On June 18, Ida Castro, Acting Director of the Women's Bureau,
and Rene Redwood, Special Assistant to the Secretary visited the
New York City Police Department's Women's Leadership Forum. She
spoke with women police officers, and top women leaders and
advocates in New York City about developing solutions to the
concerns working women have such as balancing work and family
and sexual discrimination. Director Castro also discussed the
Women's Bureau's "Don't Work in the Dark" public education
campaign.
On June 18, Acting Director Castro gave the keynote address at
the "Going the Distance IV: Embracing the Future" luncheon at the
Support Center of New York's annual conference. Support Centers
provide assistance to non
-profits including training workshops
and consulting. Castro's remarks focused on the importance of
women's non
-profits and how government, businesses and
organizations can work together make the lives of workers and
their families better.
On June 18, Joe Dear, Assistant Secretary for the Occupational
Safety and Health Administration, received a Hammer Award in
Chicago, IL.
On June 18, Rene Redwood spoke to the American Woman?s Society of
Certified Public Accountants Annual Dinner in New York City.
On June 19 and 20, Olena Berg, Assistant Secretary for Pension
and Welfare Benefits, will be in New York City for several media
interviews and will visit PWBA's regional office.
On June 19, 20 and 21, Assistant Secretary for Veterans'
Employment and Training, Preston Taylor, is participating in the
Veterans? Employment and Training Service in Breckenridge,
Colorado.
On June 20, Rene Redwood spoke to the Coalition of Urban
Metropolitan Universities 4th annual conference regarding "Urban
and MetropolitanUniversities Face a New Millennium" in Orlando,
FL.
On June 21, in Cleveland, OH, Assistant Secretary for the
Employment and Training Administration Tim Barnicle will address
the US Conference of Mayors' Employment and Training Council. He
will highlight in his luncheon speech: CAREERS Act Conference
status; Out
-of
-School Youth proposal; budget and appropriations
issues; and other issues. While at the USCM Conference,
Assistant Secretary Barnicle will also participate in a
roundtable discussion workshop entitled "Connecting Disconnected
Kids" with Mayors, Service Delivery Area Directors, and
academics in this field.
On June 21, in New Haven CT, Deputy Assistant Secretary for the
Employment and Training Administration Ray Uhalde, will attend
both the One
-Stop Career Center ribbon
-cutting ceremony and the
new Job Corps Center opening. Both of these events are excellent
examples of successful ETA programs and investment of federal
funds.
On June 22, Assistant Secretary Taylor addressed the Vietnam
Veterans of America Region 2 Conference in Atlantic City, New
Jersey.
On June 24, Joseph A. Dear, Assistant Secretary for the
Occupational Safety and Health Administration will meet with
Pacific Maritime Association and the International Longshoremen?s
and Warehousemen?s Union in San Francisco, CA. On June 25, he
will give a presentation to the American Society for Safety
Engineers in San Diego, CA.
On June 25
-28, in Belfast Northern Ireland, Assistant Secretary
Tim Barnicle will participate in the Northern Ireland Growth
Challenge Employment and Training Workshop. The US State
Department Special Advisor on Ireland, as a component of the
peace initiative for Ireland, has organized a Workshop focused on
education, employment and training initiatives. Senator Mitchell
has asked Assistant Secretary Barnicle to be the lead US
participant for this Workshop, and Assistant Secretary Trish
McNeil from DOED will also be participating along with
representatives of US corporations, US job training providers,
and US labor organizations.
VII. PRESS
On June 11, Maria Echaveste, Director of the Wage and Hour
Division, was interviewed by Jim Berenstein of Newsday about our
garment program, Telemundo, and NBC Spanish News.
On June 12, Maria Echaveste was interviewed by Susan Warner of
the Philadelphia Inquirer about our garment program.
On June 12, Rene Redwood, spoke at a Washington Post forum
regarding, Women?s Issues and How They Manifest at a Newspaper;
What Are Some of the Current Issues Facing Women?
On June 13, Vice President Gore and Secretary Reich announced a
$1.4 Million Grant for Dislocated Defense Workers in Tennessee
(BRAC closure of the Department of Defense's Distribution Depot
in Memphis)
On June 13, Secretary Reich announced a $4 Million Grant for
Dislocated Timber Workers in Washington.
On June 17, Employment Standards Administration Assistant
Secretary Bernard E. Anderson was interviewed by the Bob Becker
Show and participated in a telephone call in on child labor
issues.
On June 18, Secretary Reich announced a grant to Rhode Island for
$2.3 million for ALMACS Workers. This is the second grant to go
these workers.
On June 19, Olena Berg, Assistant Secretary for the Pension,
Benefits and Welfare Administration will be interviewed by Smart
Money magazine in New York City. The interview will focus on the
following topics: pension simplification; women and pensions;
and retirement savings.
On June 19, Secretary Reich announced three grants to Ohio
equaling $1.7 million to assist dislocated defense workers
($746,186 for workers dislocated from the Defense Distribution
Depot in Columbus; $448,474 for workers dislocated from General
Dynamics Land Systems in Lima; and $555,304 to assist Ohio coal
workers).
On June 19, Olena Berg will be interviewed by Money Magazine in
New York City.
The interview will focus on the
following topics: pension simplification; women and
pensions; and retirement savings.
On June 20, it is possible that Olena Berg will be interviewed by
a NBC Dateline
researcher for background information on the topic of PWBA's
enforcement.
This interview will not be
confirmed until June 19.
On June 24, Ida Castro, Acting Director of the Women's Bureau
will speak with the Atlanta Journal Constitution regarding the
Working Women Count! Honor Roll.
On June , Secretary Reich awarded a $16 million contract for
construction of the Idaho Job Corps Center in Nampa, Idaho.
VIII. FOIA REQUESTS
Mine Safety -- On June 4, John Boucher filed a FOIA request for
information on rent and ancillary building maintenance costs for
the Mine Safety and Health Administration's offices in Bruceton,
Pennsylvania, Triadelphia, West Virginia and Lakewood, Colorado.
Mr. Boucher also requested information on projected operating
costs for the Denver Technical Center if this office moved to
another floor at its current location or to the Federal Center in
Denver.
ABC News/Primetime Live -- On June 6, Stewart Harris, a Producer
from ABC News/Primetime Live, submitted a Freedom of Information
Act request, in which he is seeking "all correspondence
maintained by your agency and written by former Senator Robert
Dole on behalf of or regarding private citizens, corporations or
business interests."
END ATTACHMENT
1
ATTACHMENT 2
ATT CREATION TIME/DATE:20-JUN-1996 17:27:00.00
ATT BODYPART TYPE:D
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END ATTACHMENT 2
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Barbara C. Chow (CHOW_B) (WHO)
CREATION DATE/TIME: 8-JUL-1996 13:47:49.58
SUBJECT: FYI Small Business SAP
TO: Tracey E. Thornton
(THORNTON_T) (WHO)
READ: 8-JUL-1996 14:06:44.96
TEXT:
This is supposed to go today. It has some pension stuff in it
that I thought you might want to look at.
ATTACHMENT 1
ATT CREATION TIME/DATE: 8-JUL-1996 12:06:00.00
ATT BODYPART TYPE:H
ATT CREATOR: Alice E. Shuffield
ATT SUBJECT: Small Business Act SAP
ATT TO: Martha Foley
(FOLEY_M)
ATT TO: John C. Angell
(ANGELL_J)
ATT TO: John Hilley
(HILLEY_J)
ATT TO: Barbara C. Chow
(CHOW_B)
ATT CC: Elisa M. Millsap
(MILLSAP_E)
TEXT:
Below is a copy of the Small Business Act SAP (also sent to you
by fax on Wednesday, 7/3) that we aim to send to the Senate
this afternoon before floor consideration begins at 3:30. We
also plan to transmit a copy of the President's June 28th
letter regarding minimum wage up with the SAP.
Please contact me (5
-4790) by 3:00 p.m. today if you have any
concerns.
THANKS!
PRINTER FONT 12_POINT_ROMAN
DRAFT - NOT FOR RELEASE
(Senate)
H.R. 3448 - Small Business Job Protection Act
(Archer (R) Texas)
The Administration, while supporting Senate passage of a number
of provisions of H.R. 3448 as amended by the Finance Committee,
will seek further amendments to the bill. And, as stated in the
President?s June 28th letter to the Senate, a copy of which is
attached, if H.R. 3448 is presented to the President with the
minimum wage provisions of the Republican leadership amendment,
the President will veto the bill.
The Administration strongly opposes section 1601 of the bill,
which would repeal the tax credit related to corporate
investments in Puerto Rico while allowing several grandfather
rules for existing companies. The Administration urges the
Senate to delete this provision and adopt instead the proposal
to reform the credit contained in the President?s FY 1997
Budget. The Administration?s proposal provides tax benefits for
new and expanded operations based directly on real economic
activity in these underdeveloped areas. The projected revenue
savings from the reform of this credit would be used for social
and employment training programs in Puerto Rico. Unlike section
1601, the final legislative language concerning the credit
should contain effective mechanisms to promote job creation in
the islands.
The Administration will also work with Congress to adopt other
amendments as described below.
Provisions Supported by the Administration and Additional
Recommended Amendments
The Administration supports many of the revenue provisions of
H.R. 3448, which are consistent with Administration proposals to
strengthen small businesses, simplify pension laws, reinstate
incentives for research and development, and improve incentives
for education and work opportunities.
In particular:
o
Small Business Expensing. The Administration strongly
supports the bill?s increase from $17,500 to $25,000 for
the amount of tangible personal property that small
businesses can expense. The President supported such an
increase in 1993 and in his FY 1997 Budget, although with a
faster phase
-in.
o
Employer
-Provided Educational Assistance. The
Administration supports the temporary extension of the
income exclusion for employer
-provided educational
assistance, including the exclusion for post
-graduate level
education. The Administration will work with Congress to
provide a permanent extension of the exclusion. The
Administration also supports a 10 percent tax credit for
educational assistance provided under section 127 plans for
small businesses with annual gross receipts of $10 million
or less.
o
Research Tax Credit. The Administration strongly supports
full reinstatement of the research tax credit back to its
June 30, 1995, expiration date. The Administration will
work with Congress to make the credit permanent. The
Administration continues to believe that full, permanent
reinstatement should take priority over modifications to
the credit such as those contained in H.R. 3448.
o
Orphan Drug Credit. The Administration strongly supports
full reinstatement of the orphan drug credit and will work
with Congress to make the credit permanent.
o
Gifts of Appreciated Stock to Private Foundations. The
Administration strongly supports this provision and will
work with Congress to make it permanent.
o
Work Opportunity Tax Credit. The provision for a new Work
Opportunity Tax Credit addresses many of the criticisms of
the prior Targeted Jobs Tax Credit, particularly increasing
the period of retention for eligible workers. The
Administration will work with Congress to improve the scope
and effectiveness of the new credit.
o
Pension Simplification. Many provisions of H.R. 3448 were
included in the President's pension simplification proposal
announced in June 1995 at the White House Conference on
Small Business. The Administration is concerned, however,
that the safe harbor provisions applicable to both SIMPLE
and plans do not ensure that middle and lower
-wage
workers will benefit from the provision of tax
-advantaged
retirement savings plans. The Administration will work
with Congress to modify these safe harbors so that
employers taking advantage of them are required to provide
meaningful coverage to these workers. The Administration
is also concerned that the three
-year waiver of the excise
tax on very large retirement distributions would add
complexity and could actually encourage plan sponsors to
terminate plans.
o
Subchapter S. The Administration also strongly supports
most of the reforms in the bill relating to Subchapter S
(closely held) corporations, and will work with Congress to
provide further reforms and to ensure that reforms are
appropriately targeted to the intended beneficiaries.
o
Technical Corrections. The Administration supports the
long
-overdue enactment of technical corrections to recent
tax legislation and will work with Congress to achieve a
consensus package of technical corrections.
Objectionable Provisions
o
Classification of Workers for Employment Tax Purposes. The
Administration has concerns about certain changes proposed
to section 530 of the Revenue Act of 1978, which provides
?safe harbors? under which an employer has a reasonable
basis for treating a worker as an independent contractor
rather than as an employee for employment tax purposes.
The most important concerns are with proposed changes that
would: (1) shift the burden of proof to the Internal
Revenue Service with respect to the application of section
530; and (2) replace the safe harbor for reasonable
reliance on a long
-standing practice of a significant
segment of the industry with a rigid numerical test.
o
Special
-Interest Provisions. The Administration opposes
the inclusion in H.R. 3448 of numerous special
-interest
provisions.
Revenue Offsets
The Administration has serious concerns with the offset
provision in H.R. 3448 that would repeal tax benefits for
certain employee stock ownership plans that provide meaningful
employee ownership. Several of the offsets -- relating to
interest allocations for nonfinancial corporations, tax
treatment of expatriates, basis adjustment rules under section
1033, withholding on certain gambling winnings, and
reinstatement of airport and airway trust fund excise taxes --
are included in the President?s balanced budget proposal. These
offsets should be reserved for deficit reduction and meeting
balanced budget goals. In working with the Congress to develop
an improved bill that is consistent with the Administration?s
recommended amendments, appropriate offsets will be sought.
Proposals Not Addressed in H.R. 3448
In the context of an overall balanced budget plan, the
Administration will work with Congress to provide other
incentives previously proposed by the Administration but omitted
from this bill. Such incentives include the $10,000 deduction
for postsecondary tuition and training expenses, the $1,500 tax
credit for postsecondary tuition, and incentives to revitalize
economically distressed areas by cleaning up abandoned,
contaminated properties, and creating new Empowerment Zones and
Enterprise Communities.
The Administration would also support an amendment to the
Foreign Sales Corporation statute as it applies to licenses of
software, and will work with Congress to develop an acceptable
package, including appropriate revenue offsets.
Pay
-As
-You
-Go Scoring
H.R. 3448 would affect receipts; therefore, it is subject to the
?pay
-as
-you
-go? requirements of the Omnibus Budget
Reconciliation Act of 1990. OMB?s scoring of this legislation
is under development.
*******
(Do Not Distribute Outside Executive Office of the President)
This Statement of Administration Policy (SAP) was developed by
the Legislative Reference Division (Jones) in consultation with
the Departments of the Treasury (Thornton, Judson), Education
(Kristy), Transportation (Herlihy), the Interior (Markell), and
Labor (Green), Small Business Administration (Nixon), Social
Security Administration (Camilleri), the Interagency Working
Group on Puerto Rico (Farrow), White House Counsel (Kagan),
National Economic Council (Seidman), Council of Economic
Advisors (Mazur), EP (Lyon), HRD (Matlack, Kitti, Menchik, Noe),
HTFD (Rhinesmith, Meyers, Turco), NRD (Kodl), BRCD (Fairhall),
and BASD (Barth).
HUD, Pension Benefit Guaranty Corporation, SEC, WH Legislative
Affairs, and OMB/GC did not respond to our request for comments.
OMB/LA Clearance:
The House passed Title I (tax provisions) of H.R. 3448 on May
22nd by a vote of 414
-10. The House passed H.R. 1227 (minimum
wage, etc.) on May 23rd by a vote of 281
-44. H.R. 1227 was
subsequently attached to H.R. 3448 as Title II.
The Senate Finance Committee reported H.R. 3448 on June 18, 1996
with amendments. The most significant provisions of the
reported bill are described below. Pursuant to a unanimous
consent agreement, the Senate will consider H.R. 3448 on July
8th and vote on it on July 9th.
Administration Position to Date
The Administration has taken no position the Senate version of
H.R. 3448. On June 28th, the President, in a letter to the
Senate leadership (attached to this SAP) stated that he would
veto any legislation containing the Republican leadership?s
minimum wage amendment.
A SAP sent to the House on May 22nd ?support[ed] House passage
of several provisions of H.R. 3448,? indicated an intention to
seek further amendments, and expressed strong opposition to two
provisions, one of which was deleted.
On March 21st, Secretary Reich wrote to the House Committee on
Economic and Educational Opportunity that the Department had
?serious concerns? with H.R. 1227. The concerns related to the
provision that relieves the employer from the requirement to pay
employees minimum wage or overtime compensation for the time an
employee spends commuting to and from work in an employer?s
vehicle. The Secretary stated the Department had recently
clarified that issue and that the proposed legislation was
unnecessary.
Description of Major Provisions of H.R. 3448
Title I, Small Business and Other Tax Provisions
Title I of the Senate
-reported version of H.R. 3448 is similar
to the House
-passed bill. The major tax provisions of the
Senate bill are described below.
-- Tax Relief Provisions Similar to the House
-passed H.R. 3448
?
Increases from $17,500 to $25,000 the portion of the cost
of tangible depreciable property a small business can write
off annually as an expense. The increase is phased in over
seven years. The increase would phase in on a different
schedule than the House bill, beginning in 1997 rather than
in 1996.
?
Temporarily extends the exclusion from taxable income for
employer
-provided educational assistance programs to
taxable years beginning after December 31, 1994, and before
January 1, 1998. Like current law, but unlike the
House
-passed bill, this extension would apply to
graduate
-level courses.
?
Makes numerous changes to tax law affecting pensions,
including creating a new pension plan for small businesses
that has fewer requirements than existing arrangements and
allowing State and local governments and tax exempt
organizations to establish 401(k) plans.
?
Replaces the Targeted Jobs Tax Credit with a new Work
Opportunity Tax Credit available to employers hiring
individuals who are high
-risk youth, qualified ex
-felons,
summer youth employees, AFDC (or successor program)
recipients, qualified veterans, referrals from a vocational
rehabilitation program, and certain qualified food stamp
recipients between the ages of 18
-24. All but the last
group were eligible for credit under the House
-passed bill.
The Senate bill also requires a slightly shorter minimum
employment period (at least 180 days or 375 hours) than the
House bill's requirement (180 days or 500 hours).
?
Makes a number of changes to the tax code concerning
Subchapter S (closely
-held) corporations -- e.g.,
increasing the number of stockholders such corporations can
have and allowing Subchapter S entities to have
subsidiaries.
-- Tax Relief Provisions Not Contained in the House Version
?
Several tax relief provisions that expired in 1995 are
extended for varying periods of time and, in some cases,
are modified. These provisions include: the research and
experimentation (R&E) tax credit; the orphan drug credit;
the favored tax treatment for gifts of appreciated stock
made to private foundations; and the non
-conventional fuels
tax credit. The extension of the R&E tax credit begins on
July 1, 1996, and is not retroactive to its June 30, 1995
expiration date.
?
Provides for deductible contributions to an individual
retirement account by a non
-working spouse.
-- Revenue Offsets Similar to House Version
?
Phases
-out the tax credit (Sec. 936) to U.S. businesses
with operations in U.S. possessions and terminates the tax
credit for investment in the possessions and in certain
Caribbean Basin countries. Differs from House
-passed
version in several respects; including the rate of the
phaseout and the grandfathering of firms that receive the
tax credit based on the number of jobs created.
?
Repeals the tax exclusion of 50 percent of the interest
income received on a loan to a qualified employee stock
ownership plan to acquire the stock of the employer or for
refinancing such a loan. Similar to House version except
for effective date.
?
Makes punitive damages received for non
-physical injury or
illness, such as damages awarded for discrimination,
taxable. Under current law all damages are excluded from
income. The House
-passed version would also tax other
non
-economic damages.
-- Revenue Offsets Not Included in House Version
?
Extends the Airport and Airway Trust Fund excise taxes for
the period beginning seven days after the enactment of H.R.
3448 and ending after Dec. 31, 1996. These taxes include
taxes on: domestic passenger tickets; domestic freight
waybills; international departures; jet fuel used in
non
-commercial aviation; and gasoline used in
non
-commercial aviation. An exemption is provided for
certain emergency medical helicopters and for fixed
-wing
aircraft exclusively dedicated to acute care emergency
transportation.
?
Revises the rules aimed at stemming tax avoidance though
expatriation by treating, for tax purposes, all assets as
having been sold at the time U.S. citizenship is given up
and taxing the imputed gains on those assets.
?
Phases
-out and extends, through Dec. 31, 2002, the current
10 percent luxury tax on automobiles costing more than
$34,000.
?
Allows certain people engaged in the local furnishing of
electricity and gas to elect not to be eligible for future
tax
-exempt financing without incurring the present
-law loss
of interest deductions and loss of tax exemption.
-- Major Objectionable Provisions of House Version Not
Included in Senate Bill
?
The Senate
-reported version of H.R. 3448 does not include
the repeal of the taxation of U.S. shareholder earnings
attributed to ?excessive passive assets? (i.e., greater
than 30 percent of all assets) held by a foreign
corporation.
Title II, Payment of Wages
The major provisions of Title II, which are identical in the
House
-passed and Senate
-reported versions of H.R. 3448:
?
Increase the minimum wage by $.50 an hour to $4.75
beginning on July 1, 1996, and by an additional $.40 an
hour to $5.15 beginning on July 1, 1997. In February
1995, the President transmitted to Congress a bill that
proposed to increase the minimum wage by $.45 an hour
beginning on July 4, 1995, and by an additional $.45 and
hour beginning on July 4, 1996.
?
Establish a permanent fixed sub
-minimum wage at the flat
rate of $4.25 an hour - for youth under 20 years of age in
their first 90 days of employment with any employer with no
training requirements.
?
Exempt from minimum wage and overtime requirements certain
computer professionals who are compensated at a rate of not
less than $27.63 per hour.
?
Eliminate the requirement that employers of tipped
employees (e.g., waiters and waitresses) pay at least 50%
of the statutory minimum wage in cash and replace it with a
provision which locks the cash wage at the current standard
of $2.13 even after the statutory minimum wage goes up. By
replacing the current index formula with this fixed rate,
this amendment would deny these employees any benefit from
future increases in the minimum wage.
?
Clarify that employers are not required to pay employees
minimum wage or overtime compensation for the time an
employee spends commuting to and from work in an employer?s
vehicle if: (1) the travel is within the normal commuting
area for the employer?s business; and (2) the use of the
vehicle is subject of an agreement between the employer and
the employee or representative of such employee.
Pay
-As
- -You
-Go Scoring
According to BASD (Barth), H.R. 3448 would affect receipts, and,
therefore, is subject to the pay
-as
-you
-go requirement of the
Omnibus Budget Reconciliation Act of 1990. Treasury has not
yet scored the revenue provisions of the bill. The Joint
Committee on Taxation scored the Senate bill as having a net
effect of increasing revenue by $47 million over FY 1996
-FY 2000
and by $58 million over FY 1996
-FY 2005. For the years covered
by the statutory pay
-as
-you- go requirements, CBO/JCT scored the
bills as increasing receipts by $258 million in FY 1996,
increasing receipts by $405 million in FY 1997, and reducing
receipts by $375 million in FY 1998.
LEGISLATIVE REFERENCE DIVISION
\d - 12:00 PM
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Stephen B. Silverman (SILVERMAN_S) (WHO)
CREATION DATE/TIME:19-AUG-1996 17:35:12.51
SUBJECT: SBA follow-up on Rahm issue
TO: Kim B. Widdess
( WIDDESS_K) (WHO)
READ:19-AUG-1996 20:43:37.30
TO: Michelle Crisci
( CRISCI_M) (WHO)
READ:19-AUG-1996 17:45:26.46
TEXT:
Spoke with John Caplan (SBA DCOS). He and Rahm have spoken about
Sean Marcel, a small business person featured in USA Today today
about Pensions. He introduced Potus April 11 in Rose Garden
pension ceremony. He promised that if Potus signs Pension reform
he will create a pension at his company. Sean will be there
tomorrow. Do we want him on stage. I'm getting this and paper to
speech writers for possible inclusion.
John seemed to think Rahm would be pretty interested in this. Let
me know.
Thanks. SBS
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Stephen B. Silverman (SILVERMAN_S) (WHO)
CREATION DATE/TIME:19-AUG-1996 17:54:17.59
SUBJECT: For speech and/or stage?
TO: Michael Waldman
(WALDMAN_M) (WHO)
READ:19-AUG-1996 19:31:55.97
TO: Joshua A. King
(KING_J) (WHO)
READ:19-AUG-1996 19:53:49.11
CC: Michelle Crisci
( CRISCI_M) (WHO)
READ:19-AUG-1996 17:55:17.05
CC: Kim B. Widdess
(WIDDESS_K) (WHO)
READ:19-AUG-1996 20:46:37.87
TEXT:
ATTACHMENT 1
ATT CREATION TIME/DATE:19-AUG-1996 17:29:00.00
ATT BODYPART TYPE:B
ATT CREATOR: Stephen B. Silverman
ATT SUBJECT: SBA follow-up on Rahm issue
ATT TO: Kim B. Widdess
(WIDDESS_K)
ATT TO: Michelle Crisci
( CRISCI_M)
TEXT:
Spoke with John Caplan (SBA DCOS). He and Rahm have spoken about
Sean Marcel, a small business person featured in USA Today today
about Pensions. He introduced Potus April 11 in Rose Garden
pension ceremony. He promised that if Potus signs Pension reform
he will create a pension at his company. Sean will be there
tomorrow. Do we want him on stage. I'm getting this and paper to
speech writers for possible inclusion.
John seemed to think Rahm would be pretty interested in this. Let
me know.
Thanks. SBS
END ATTACHMENT
1
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Christopher J. Ruhm (RUHM_C) (CEA)
CREATION DATE/TIME:22-OCT-1996 15:53:15.15
SUBJECT: Feldstein/Samwick Working Paper
TO: Alicia H. Munnell
( MUNNELL_A) (WHO)
READ:22-OCT-1996 16:06:46.59
TEXT:
Alicia:
I just took a quick glance at the NBER working paper by Marty Felstein and
Andrew Samwick on privatizing Social Security. I did not read it in detail but
I thought you might be interested in the key assumptions for their baseline
case.
They assume:
1) that the real return on payroll tax contributions in the current system will
be 2.5% per year. This represents the rate of growth of real wage and salary
payments between 1960 and 1995.
2) that the real rate of return on a mandatory individual retirement account
(MIRA) would be 9% year. This represents the average pretax marginal product of
capital during the last 35 years.
Note: This means that their calculations are based on 6.5% differential per year
between the pay-as-you-go (PAYGO) as the privatized systems.
To illustrate the magnitude of this difference, they estimate that, for a 45
year old, a 1.96% payroll tax in the privatized system would produce the same
retirement savings as the current 12.4% contribution. Moreover, they estimate
t
hat the extra 10.44% tax in the PAYGO system creates a deadweight loss of
around 2.5 percentage points.
They do play around a bit with reducing the size of the differentials in the
relative rates of returns in the two systems, but all of the differentials are
quite large. Furthermore, they provide no discussion on what types of
investment vehicles could be used to actually get these very high rates of
returns. (And so, they do not think about administrative costs etc.)
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Alicia H. Munnell (MUNNELL_A) (WHO)
CREATION DATE/TIME:22-OCT-1996 16:09:31.13
SUBJECT: Feldstein paper on privatizing social security.
TO: William B. English
( ENGLISH_W) (CEA)
READ:22-OCT-1996 16:11:55.98
TO: Christopher J. Ruhm
(RUHM_C) (CEA)
READ:22-OCT-1996 16:10:27.41
TEXT:
ATTACHMENT
1
ATT CREATION TIME/DATE:22-OCT-1996 15:35:00.00
ATT BODYPART TYPE:B
ATT CREATOR: Christopher J. Ruhm
ATT SUBJECT: Feldstein/Samwick Working Paper
ATT TO: Alicia H. Munnell
(MUNNELL_A)
TEXT:
Alicia:
I just took a quick glance at the NBER working paper by Marty Felstein and
Andrew Samwick on privatizing Social Security. I did not read it in detail but
I thought you might be interested in the key assumptions for their baseline
case.
They assume:
1) that the real return on payroll tax contributions in the current system will
be 2.5% per year. This represents the rate of growth of real wage and salary
payments between 1960 and 1995.
2) that the real rate of return on a mandatory individual retirement account
(MIRA) would be 9% year. This represents the average pretax marginal product of
capital during the last 35 years.
Note: This means that their calculations are based on 6.5% differential per year
between the pay-as-you-go (PAYGO) as the privatized systems.
To illustrate the magnitude of this difference, they estimate that, for a 45
year old, a 1.96% payroll tax in the privatized system would produce the same
retirement savings as the current 12.4% contribution. Moreover, they estimate
t
hat the extra 10.44% tax in the PAYGO system creates a deadweight loss of
around 2.5 percentage points.
They do play around a bit with reducing the size of the differentials in the
relative rates of returns in the two systems, but all of the differentials are
quite large. Furthermore, they provide no discussion on what types of
investment vehicles could be used to actually get these very high rates of
returns. (And so, they do not think about administrative costs etc.)
END ATTACHMENT
I
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Peter O'Keefe ( CN=Peter O'Keefe/OU=WHO/O=EOP [ WHO 1)
CREATION DATE/TIME: 3-JAN-1997 13:10:34.00
SUBJECT: Small Business Legislative Council request
TO: Michelle Crisci ( CN=Michelle Crisci/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
CC: CARTER_CM ( CARTER_CM @ A1 @ CD @ LNGTWY [ UNKNOWN 1) (WHO)
READ:UNKNOWN
TEXT:
Per yesterday's conversation, I received a phone call from John Satagaj,
President of the Small Business Legislative Council, asking whether or not
Rham would consider addressing their annual leadership meeting on January
16th, any time between 11:00am - 2:00pm, at the Vista Hotel.
The Small Business Legislative Council is an independent coalition of
approximately 100 trade and professional associations who share a common
commitment to the future of small business. Their membership is quite
diverse (I will fax a list to you) and through the participants in this
meeting, its content reaches almost 2 million small business members. In
the past, the Small Business Legislative Council has been supportive of
such Administration initiatives as health care and pension reform.
Rham would be expected to give some prepared remarks followed by
10-15minutes of Q&A. This would be an excellent opportunity to speak to a
broad coalition of small business employers concerning some of the
Administrations priorities. John expects about 75-100 association CEO's to
participate in this years meeting.
Please let me or Cheri know if you think this would be of interest to him.
Thank you.
RECORD TYPE: PRESIDENTIAL (ALL-IN-1 MAIL)
CREATOR: Jennifer Palmieri (PALMIERI_J) (WHO)
CREATION DATE/TIME:27-MAR-1997 12:45:11.18
SUBJECT: Pension
TO: Ann F. Lewis
(LEWIS_AF) Autoforward to: Remote Addressee
( Ann F.
Lewis@eop@Ingtwy@eopmrx ) (WHO)
READ:NOT READ
TO: Stephanie S. Streett
( Stephanie S. Streett@eop@LNGTWY@EOPMRX)
READ:NOT READ
TEXT:
FYI, both NEC and Cabinet Affairs have weighed in with me to push
for holding the pension event at DOL as opposed to Treasury.
They prefer DOL becuase:
1) Labor is the lead on PBGC (Sec. of Labor is the chair of the
PBGC, Treasury Sec. and Commerce Sec. are just members).
2) Marty Slate, the former head of PBGC and leader of pension
reform, recently passed away and his widow and family will be at
the event. Having the event at DOL will be a nice tribute to him
for his family and colleagues.
3) The President has never been to DOL, and having him there would
be a great morale boost for the Department.
I told them that holding the event at Treasury may be best for us
because of the President's physical limitation, but that I would
put their in the "decision mix."
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Ilia V. Velez ( CN=Ilia V. Velez/OU=WHO/O=EOP [ WHO )
CREATION DATE/TIME:30-JUL-1997 11:55:04.00
SUBJECT: Budget
TO: Erodriguez ( Erodriguez @ nclr.org @ inet [ UNKNOWN 1)
READ:UNKNOWN
TEXT:
Hey. What is up? I thought you might want to see this, if you have not
seen it already. I will give you a call later. Bye.
PRESIDENT CLINTON DELIVERS THE FIRST BALANCED BUDGET IN A GENERATION AND A
MAINSTREAM TAX CUT
Roughly $900 Billion in Net 10 Year Deficit Savings.
First Balanced Budget since 1969.
Largest Investment in Higher Education Since the G.I. Bill in 1945:
$1,500 HOPE Scholarship to Help Make Two Years of College Universally
Available.
20% Tuition Tax Credit for College Juniors, Seniors, Graduate Students
and Working Americans pursuing Lifelong Learning to upgrade their skills.
Single Largest Investment in Health Care for Children Since 1965.
A $500 Per Child Tax Credit for Approximately 27 Million Families.
Critical Long-Term Entitlement Reforms -- Extends Solvency of Medicare
Trust Fund for at Least a Decade.
Brownfields and Empowerment Zones Tax Incentives to Revitalize Our
Nation,s Distressed Areas.
A $ 3 Billion Welfare-to-Work Jobs Initiative Targeted to High Poverty
Areas.
Treats Legal Immigrants Fairly -- Restores Health and Disability Benefits.
PRESIDENT CLINTON DELIVERS
THE LARGEST SINGLE INVESTMENT IN CHILDREN,S HEALTH CARE SINCE THE PASSAGE
OF MEDICAID IN 1965
The President fought hard to ensure that the Budget Agreement includes $24
billion to provide meaningful health care coverage to as many as five
million of our nation,s ten million uninsured children. This investment
includes a meaningful benefits package, ensures that states use this money
to cover uninsured children and not replace existing public or private
spending, and guarantees adequate cost-sharing protections for families.
INVESTS UNPRECEDENTED $24 BILLION FOR UNINSURED CHILDREN. The President
insisted on increasing the investment for children,s health from $16
billion to $24 billion by including revenue from a new tobacco tax.
Because of the President,s leadership, this budget will contain the
largest children,s health care budget increase since the enactment of
Medicaid in 1965. Including these additional revenues in the children,s
health initiative will not only further reduce the number of uninsured
children, but it will also serve as a financial barrier to help prevent o
ur children from starting smoking in the first place.
ENSURES MEANINGFUL HEALTH CARE COVERAGE, WHILE ALLOWING STATES TO DESIGN
THEIR OWN BENEFITS PACKAGES. The President fought hard to ensure that
this investment guarantees the full range of benefits -- from checkups to
surgery -- that children need to grow up strong and healthy. The
President also worked to ensure that prescription drugs, vision, hearing,
and mental health coverage now offered at the state level are extended to
millions of uninsured children.
GIVES STATES THE FLEXIBILITY TO DESIGN BENEFITS THAT MEET THEIR NEEDS.
States will be able to choose from any of four benefits packages: (1) the
FEHPB model; (2) the benefits package of the most popular state HMO; (3)
the state employee plan; and (4) the actuarial equivalent of any of the
three stated benefit plans as long as prescription drugs, vision, hearing,
and mental health services now offered in these plans are guaranteed to
equal at least 75 percent of the value of these services.
SUPPLEMENTS, NOT SUPPLANTS, CURRENT HEALTH CARE COVERAGE. Includes
provisions to ensure that states provide health care coverage to children
who do not currently have health insurance. It requires that states
maintain their current Medicaid eligibility levels of spending to access
Federal dollars to ensure that this investment is not used to replace
public or private money that already covers children.
ENSURES ADEQUATE COST-SHARING PROTECTIONS. The President fought to
ensure that families are not forced to shoulder excessive costs for their
children. The Agreement guarantees that families under 150 percent of
poverty will be protected against overly burdensome cost sharing.
PRESIDENT CLINTON DELIVERS A $500 CHILD TAX CREDIT
FOR APPROXIMATELY 27 MILLION FAMILIES
MAIN FEATURES OF THE CHILD TAX CREDIT:
Age. Covers children under 17.
Amount per child. $400 in 1998. $500 thereafter.
Income limits. Begins to be phased out for couples making over $110,000
and for one parent families making over $75,000.
"Stacking" Child tax credit will be calculated or &stacked8 before
the EITC, and will therefore be available for the up to 7.5 million
children in working families who have incomes below $30,000 and who were
denied the child tax credit under the congressional bills.
For families with more than two children -- Refundability to cover
out-of-pocket income and payroll taxes. Because many large families have
little income tax liability, but pay significant out-of-pocket payroll
taxes, the child tax credit for these families is partially refundable.
These families will receive a child credit for their income taxes plus the
extent to which their out-of-pocket (employee share) payroll taxes exceed
their EITC.
Savings Incentive. Taxpayers will be given the opportunity to contribute
$500 each year to an education Individual Retirement Account (IRA).
Earnings would accumulate tax-free in the account, and no taxes will be
due upon withdrawal for an approved purpose.
A CHILD TAX CREDIT FOR FAMILIES WHO WORK HARD AND PAY TAXES.
13 million children from families with incomes below $30,000 will receive
the child tax credit -- up to 7.5 million* more than would have under the
Congressional plans. Families making under $30,000 like young teachers,
police officers, farmers, nurses and others who work hard and play by the
rules will now receive the Child Tax Credit. *Comparison to House passed
bill; vs. Senate bill: 5.9 million.
President Clinton worked to ensure that under any final agreement, these
young parents would receive a child tax credit to make it easier for them
to raise their children.
PRESIDENT CLINTON DELIVERS EDUCATION TAX CUTS
TO HELP MIDDLE CLASS FAMILIES PAY FOR COLLEGE
THE PRESIDENT,S HOPE SCHOLARSHIP AND TUITION TAX CREDIT
From the beginning, promoting expanded educational opportunity has been
the centerpiece of President Clinton,s budget and his middle class tax
cut proposal. Promoting education is the centerpiece of this final tax
cut bill:
$1,500 HOPE Scholarship to make the first two years of college universally
available. The final agreement includes the President,s program to
advance the goal of making the 13th and 14th grades as universally
available as a high school diploma is today. Students will receive a
scholarship of 100% on the first $1,000 of tuition and fees and 50% on the
second $1,000.
20% Tuition Tax Credit for College Juniors, Seniors, Graduate Students and
working Americans pursuing lifelong learning to upgrade their skills.
The 20% credit will be applied to the first $5,000 of tuition and fees
through 2002, and to the first $10,000 thereafter.. The President has long
understood that the economy is changing and that people must have the
opportunity to enhance their skills throughout their working lives. This
is why the President insisted on the 20% tuition tax credit that is in the
final bill and is a major improvement over the Congressionally-passed
bills.
A SUMMARY OF ADDITIONAL EDUCATION TAX CUTS
Education and Retirement Savings Accounts. Allows penalty-free IRA
withdrawals for undergraduate, post-secondary vocational, and graduate
education expenses. Additionally, taxpayers are given the opportunity to
deposit $500 into an education IRA. Earnings would accumulate tax-free and
no taxes will be due upon withdrawal for an approved purpose.
Employer-Provided Education Benefits. Extends Section 127 of the tax code
for three years, which allows workers to exclude $5,250 of
employer-provided undergraduate education benefits from their taxable
income.
Student Loan Interest Deduction. Allows a deduction for up to $2,500 per
year of interest on education loans for expenses of students enrolled at
an institution of higher education. This deduction will be available even
if the taxpayer does not itemize deductions.
Community Service Loan Forgiveness. In most circumstances, a loan that is
forgiven is considered income and is therefore taxable. To encourage
programs that offer loan forgiveness to borrowers who take lower-paying,
community-service jobs, the agreement excludes from taxable income both loa
n amounts forgiven through programs run by nonprofit tax-exempt charitable
or educational institutions. Currently, the exclusion generally covers
only certain forgiveness arrangements between students and government
entities.
Repeal Cap on Tax Exempt Bond Issuance by Colleges and Universities.
Repeals the $150 million bond cap that affects private higher education
institutions and certain other charitable institutions. The repeal
applies to tax-exempt bonds issued by these institutions to finance new
capital expenditures.
PRESIDENT CLINTON DELIVERS A BUDGET THAT
STRENGTHENS AND PRESERVES MEDICARE
The Budget Agreement preserves and strengthens the Medicare program,
saving $115 billion over five years and extending the life of the Medicare
Trust Fund for at least ten years. It modernizes Medicare by including
new market-oriented reforms that have proved successful in the private
sector plus $4 billion in new preventive benefits. As this agreement
strengthens and preserves the Medicare program, it also creates a Medicare
Commission to examine the long-term needs of the program so that Medicare
will be prepared for the retirement of the baby boomers.
SAVES APPROXIMATELY $115 BILLION OVER FIVE YEARS. Includes about $115
billion in savings over five years and between $400-$450 billion over ten
years.
EXTENDS THE LIFE OF THE MEDICARE TRUST FUND FOR AT LEAST TEN YEARS. This
agreement will keep Medicare solvent until at least 2007.
IMPLEMENTS NEW MARKET-ORIENTED REFORMS INCLUDING:
(1) Empowering the Secretary of Health and Human Services to
implement competitive market mechanisms;
(2) Opening up new options that offer more choice among competing
health plans and have proven effective in the private sector, including
Preferred Provider Organizations (PPOs) and Provider Sponsored
Organizations (PSOs);
(3) Providing Americans with meaningful choices by reforming
annual Medigap enrollment; and
(4) Building on Medicare,s success in controlling hospital costs,
restructuring the payment systems for home health, agencies, skilled
nursing facilities and hospital outpatient departments so that rates are
set in advance through a prospective payment system.
INCLUDES $4 BILLION OVER FIVE YEARS FOR NEW PREVENTIVE BENEFITS.
Expanding coverage for mammograms and colorectal screening and improving
self-management of diseases like diabetes.
ENSURES NEW PREMIUM PROTECTIONS FOR LOW-INCOME MEDICARE BENEFICIARIES.
The budget agreement invests $1.5 billion over five years to pay the
premiums for beneficiaries up to 135 percent of poverty. Beneficiaries
over 135 percent of poverty to as high as 175 percent of poverty will get
assistance as well.
TAKES STEPS TO ENSURE THAT VULNERABLE HOSPITALS ARE PROTECTED. The
Agreement reduces the Medicare Disproportionate Share Hospitals cut from
$2.4 billion in the Senate-passed bill to $600 million over five years.
ESTABLISHES A MEDICARE COMMISSION. The agreement creates a 17-member
Medicare Commission which contains eight Democrats and eight Republicans
and a Chair who will be selected jointly by the President and the
Congressional leadership. The Commission will release a report in 1999
and require an 11 of 17 majority to ensure that its recommendations are
bipartisan.
THE BUDGET AGREEMENT PROTECTED THE PRESIDENT,S PRIORITY PROGRAMS,
INCLUDING EDUCATION
The Budget Agreement achieved 99% of the President,s budget for
non-defense discretionary spending over the next 5 years. While priority
items are protected, there are $61 billion of savings in non-defense
discretionary outlays over the next 5 years -- a 10% real cut by 2002.
These priorities will be ratified in the appropriations process under the
budget agreement.
LARGEST INCREASE IN EDUCATION INVESTMENT IN 30 YEARS
The budget agreement endorsed President Clinton,s overall plan for
investing in education and training -- $63 billion more than the
Republican plan over five years. With the tax cuts for education, this
represents the largest increase in the Federal investment in education in
30 years. The agreement specifically calls for:
Increases funding for Head Start to continue on road to achieve enrollment
of 1 million kids in 2002.
Largest Pell Grant increase in two decades - boosts the maximum 1998 Pell
grant from $2,700 to $3,000, and expands the program to more poor
independent students.
Adopts the President,s budget request to launch a child literacy
initiative consistent with his America Reads program.
Increases funding for bilingual (27% increase) and immigrant education
(50% increase).
Includes all of the $579 million increase in funding requested by the
President in his FY 1998 budget of $5.3 billion for Training and
Employment Services, including Job Corps.
AND TO MOVE PEOPLE FROM WELFARE TO WORK
A WELFARE-TO-WORK TAX CREDIT. This provision will give employers an
added incentive to hire long-term welfare recipients by providing a credit
equal to 35% of the first $10,000 in wages in the first year of
employment, and 50% of the first $10,000 in wages in the second year, paid
to new hires who have received welfare for an extended period. The credit
is for two years per worker to encourage not only hiring, but also
retention.
$3 BILLION TO HELP MOVE 1 MILLION PEOPLE FROM WELFARE TO WORK. Includes
President's proposal to create $3 billion Welfare to Work Jobs Challenge
to move long-term welfare recipients into lasting, unsubsidized jobs.
These funds can be used for job creation, job placement and job retention
efforts, including wage subsidies to private employers, transportation and
other critical post-employment support services. The Labor Department
will provide oversight but the dollars will be placed in the hands of the
localities who are on the front lines of the welfare reform effort.
PRESERVES THE MINIMUM WAGE AND OTHER LABOR PROTECTIONS FOR WELFARE
RECIPIENTS MOVING FROM WELFARE TO WORK. Does not include the
House-passed provision to leave workfare participants unprotected by the
Fair Labor Standards Act and other employment laws.
PROTECTS WORKERS FROM DISPLACEMENT BY THOSE LEAVING THE WELFARE ROLLS, and
establishes a strong process for workers to raise grievances with an
independent agency.
PRESIDENT CLINTON FOUGHT TO PROTECT
OUR MOST VULNERABLE PEOPLE
Several provisions in last year,s welfare reform bill had nothing to do
with the goals of welfare reform. The President said so at the time and
promised to work to correct these provisions. That,s why he fought to
ensure that any agreement protects the most vulnerable in our society. The
President fought to better protect:
CHILDREN
KEEPING THE MEDICAID GUARANTEE. Preserves the Federal guarantee of
Medicaid coverage for the vulnerable populations who depend on it, and
contains additional investments to extend coverage to uninsured children.
Also ensures that 30,000 disabled children losing SSI because of the new
tighter eligibility criteria keep their Medicaid coverage.
LEGAL IMMIGRANTS
CURRENT RECIPIENTS. Restores both SSI and Medicaid benefits for
immigrants now receiving assistance, ensuring that they will not be turned
out of their apartments or nursing homes or otherwise left helpless.
CURRENT RESIDENT NONRECIPIENTS. Does not change the rules retroactively.
Immigrants in the country as of August 22, 1996 but not receiving benefits
at that time who subsequently become disabled will also be fully eligible
for SSI and Medicaid benefits. The budget will restore benefits to over
350,000 legal immigrants in FY 2002.
REFUGEES AND ASYLEES. Extends the SSI and Medicaid eligibility period for
refugees and asylees from 5 years after entry (the limit in the welfare
bill) to 7 years to give these residents more time to naturalize. Adopts
Administration proposal to treat Cuban and Haitian entrants and Amerasian
immigrants as refugees to preserve benefits for these groups that have
endured extraordinary hardships.
POOR ELDERLY AND DISABLED, INCLUDING CITIZENS
RECIPIENTS OF STATE SSI SUPPLEMENTS. Does not include the House-passed
provision that would have repealed the maintenance-of-effort requirement
applying to State supplementation of SSI benefits which would have
permitted States to reduce or eliminate benefits to almost 3 million poor
blind, elderly and disabled individuals.
PEOPLE WHO WANT TO WORK BUT CAN,T FIND A JOB
235,000 MORE WORK SLOTS. Last year,s welfare reform bill restricted food
stamps for able-bodied childless adults to only 3 out of every 36 months,
unless they were working. This move ignored the fact that finding a job
often takes time. The budget bill provides nearly $1 billion for an
estimated 235,000 work slots over 5 years and food stamp benefits to those
who are willing to work but, through no fault of their own, have not yet
found employment.
ALLOWS STATES TO EXEMPT UP TO 15 PERCENT OF THE FOOD STAMP RECIPIENTS
(70,000 Individuals Monthly) WHO WOULD OTHERWISE BE DENIED BENEFITS AS A
RESULT OF THE "3 IN 36" LIMIT.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Karen Tramontano ( CN=Karen Tramontano/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME: 3-NOV-1997 14:01:09.00
SUBJECT: Re: Video request
TO: Karin Kullman ( CN=Karin Kullman/OU=WHO/O=EOP @ EOP [ WHO ] )
READ:UNKNOWN
TEXT:
Laura asked for my recommendation. So, I would like it considered at the
next video taping meeting. The Building & Construction Trades has been
very helpful on a number of issues -- the most recent of which was
ensuring that there was not a picket line set up at the hotel when the
President gave his DLC address. I also thought we could promote the
President's changes in pension reform. THanks for your consideration
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Sondra L. Seba ( CN=Sondra L. Seba/OU=WHO/O=EOP [ WHO 1)
CREATION DATE/TIME:11-MAR-1998 17:57:38.00
SUBJECT: weekly
TO: Robin Leeds ( CN=Robin Leeds/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Tania I. Lopez ( CN=Tania I. Lopez/OU=WHO/O=EOP @ EOP [ WHO )
READ:UNKNOWN
TO: Audrey T. Haynes ( CN=Audrey T. Haynes/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TEXT:
Older Women's League Briefing -- The Women's Office hosted a
briefing/roundtable for the 20+ board members of the Older Women's
League. They requested this meeting to talk about their priorities and
concerns, such as Medicare, Social Security, pending pension reform
legislation, and Health Care. One of their top issues is managed care
consumer protection legislation--they are not yet supporting specific
legislation, as so many bills have been introduced, many of them with some
of the protections they feel are necessary, but none with all.
They were also focused on women, money and retirement, spotlighting the
current status of women's retirement income, and providing a wake-up call
to younger women about the necessity of starting to save early. This
group was extremely responsive, knowledgeable and excited about the
Administration's efforts on behalf of all women, young and old.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Kelley L. O'Dell ( CN=Kelley L. O'Dell/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME: 9-OCT-1998 11:20:15.00
SUBJECT: principals' events
TO: Maureen T. Shea ( CN=Maureen T. Shea/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TEXT:
You've already covered the women's Social Security event, which I think is
a must. It sounds like it will be a "retirement security" event,
covering the proposed pension reform plus emphasizing the importance of
Social Security to women. Would we want either the First Lady or Mrs.
Gore there, too? (in light of the fact that we invited Mrs. Gore to do the
OWL conference- I haven't checked back on that yet)
My other choice for emphasis would be education- but I think they covered
that with the event last week- "one day for education."
We could always ask for an "At the Table"-type discussion with one of the
principals- but that is hard since all of the trips before the election
are political. So, our push on that will probably be for the month of
November. Also, I think that "Americans Discuss Social Security" will be
doing a conference on women in November- a possibility for the First Lady.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Elisa Millsap ( CN=Elisa Millsap/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:22-OCT-1998 10:39:52.00
SUBJECT: Re: FW: FYI on the POTUS EVENT
TO: Jon P. Jennings ( CN=Jon P. Jennings/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TEXT:
She was invited to come to the White House and also invited to participate
in the regional event in Chicago. She is not able to do either. I never
saw a list, though. Does one exist?
Jon P. Jennings
10/22/98 10:34:44 AM
Record Type: Record
To:
Elisa Millsap/WHO/EOP
cc:
Subject:
FW: FYI on the POTUS EVENT
I assume you have this.
Forwarded by Jon P. Jennings/WHO/EOP on 10/22/98
10:36 AM
Atkin Timothy
10/21/98 11:31:08 AM
Record Type: Record
To: Jon P. Jennings/WHO/EOP
cc:
Subject: FW: FYI on the POTUS EVENT
fyi, let me know if you need more info
From: Rodriguez Geronimo
Sent: Wednesday, October 21, 1998 11:12 AM
To: Atkin Timothy
Subject: FYI on the POTUS EVENT
From: Maroney Kevin
Sent: Wednesday, October 21, 1998 11:02 AM
To: Rodriguez Geronimo
Cc: Eisenbrey Ross; Luna David
Subject: RE: POTUS Event
Earlier this week, in response to a WH request, I faxed the attached
list of Members with an interest in this issue to the WH. What you
need to know that is that the one member of Congress who should
participate in this event is Senator Carol Moseley-Braun. She
personally went to the WH about 4 years ago and demanded that the
President include women and pension changes as part of his omnibus
pension reform bill. No other member that I am aware of have
demonstrated similar leadership on this issue. We really need to try
and get her to this event!
- list.wh
ATTACHMENT 1
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The following is a HEX DUMP:
October 19, 1998
Fax to: Elisa Millsap, 456-2604
From: Kevin Maroney, ph 219-6141
This is in response to your request for a list of Members with an interest in the issue of women and
pensions, specifically the pension protection for workers who use FMLA and the additional
annuity option (jont and 3/4).
HOUSE MEMBERS
Rep. Barbara Kennelly: For the past three Congresses, Rep. Kennelly has sponsored women's
pension legislation which includes an annuity option different from current law. Rep. Kennelly's
bill also would make other changes to ERISA that would benefit women.
Rep. David Price: Sponsored legislation to amend the ERISA to make certain that workers who
avail themselves of FMLA benefits do not lose pension credits.
Rep. Sam Gejdenson: Sponsored omnibus pension reform legislation, which included significant
provisions intended to help women in retirement.
Rep. Debbie Stabenow: Sponsored legislation providing a tax credit to small businesses that start
up pensions. This bill would have helped women save for retirement because so many women
work for small business.
Rep. Nita Lowey: Included language as part of the Labor-HHS bill that caused DOL and Treasury
to issue guidance that helped women in divorce protect their retirement assets.
Rep.Marge Roukema: She was the House Member who sponsored the FMLA bill. She has been
credited with breaking opposition to this law. She also sits on the House Education and
Workforce Committee, the committee with ERISA jurisdiction.
Others: You may wish to invite Ways and Means Committee ranking member Rep. Rangel or Rep.
Neal, as well as Education and the Workforce Committee, Subc. on Employer-Employee
Relations, ranking member Rep. Payne because this legislation will pass through their
Committees.
SENATE
Senator Carol Moseley-Braun: As far back as 1996, Senator Moseley-Braun has been a leader on
the issue of women's retirement security. She caused the Administration to include a series of
provisions as part of the President's bill (including the annuity option provision and others)
intended to protect women's interests in pensions. Her staff also helped advance the notion of the
amendment to ERISA to protect workers who use FMLA benefits. She sits on the Finance
Committee, the Senate committee of jurisdiction.
[Automated Records Management System Hex-Dump Conversion]
Senator Barbara Boxer: Had significant success in advancing legislation included as part of the
TRA of 1997 which protected 401K plan assets from being invested in the assets of the employer.
She has been a consistent champion of pension and women' issues.
Senator Patty Murray: This legislation will pass through the Labor Committee and Senator Murray
would be a natural advocate on behalf of these provisions. She is a constant advocate for the
rights of women.
Senator Dodd: He was a leader on the FMLA and it would be sensible to include him as part of this
event. Sits on the Labor Committee.
Senator Collins: Strong on women's issues. She sits on the Labor and Aging Committees.
[Automated Records Management System Hex-Dump Conversion]
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Loporchio Vincent G ( Loporchio Vincent G [ UNKNOWN ])
CREATION DATE/TIME:23-NOV-1998 17:42:29.00
SUBJECT: Social Security
TO: Jackson T. Dunn ( CN=Jackson T. Dunn/OU=WHO/O=EOP [ WHO ])
READ:UNKNOWN
TEXT:
November 23, 1998
Dear Jay:
Just following up on our conversation the other day about the White House
Conference on Social Security. We are having our second event in the
three-part Dreyfus Global Pension Series on December 1 in New York.
Given the timing, we feel it would be good to follow up with the White
House
event, since we've been committed to the issue of global pension reform.
Please let me know at your earliest convenience if we can participate in
the
Conference. I'm holding time on our president's schedule (Ronald P.
O'Hanley).
I read somewhere that you would be doing one of the two days closed door
with Congressional leaders. If that's the case, do you know which day?
Thanks very much for your attention to this request.
Vincent G. Loporchio
Vice President
Mellon/Dreyfus
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Janelle E. Erickson ( CN=Janelle E. Erickson/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:15-JAN-1999 15:03:47.00
SUBJECT: Daschle's Leadership 10
TO: Joel K. Wiginton ( CN=Joel K. Wiginton/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Caroline R. Fredrickson ( CN=Caroline R. Fredrickson/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Marty J. Hoffmann ( CN=Marty J. Hoffmann/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Broderick Johnson ( CN=Broderick Johnson/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Elisa Millsap ( CN=Elisa Millsap/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Roger S. Ballentine ( CN=Roger S. Ballentine/OU=WHO/O=EOP @ EOP [ WHO D
READ:UNKNOWN
TO: Virginia N. Rustique ( CN=Virginia N. Rustique/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Mindy E. Myers ( CN=Mindy E. Myers/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Donald Goldberg ( CN=Donald Goldberg/OU=WHO/O=EOP @ EOP [ WHO D
READ:UNKNOWN
TO: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Janet Murguia ( CN=Janet Murguia/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Courtney C. Crouch ( CN=Courtney C. Crouch/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Matthew J. Bianco ( CN=Matthew J. Bianco/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Lisa M. Kountoupes ( CN=Lisa M. Kountoupes/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Dario J. Gomez ( CN=Dario J. Gomez/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Alphonse J. Maldon ( CN=Alphonse J. Maldon/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Janelle E. Erickson ( CN=Janelle E. Erickson/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Eli P. Joseph ( CN=Eli P. Joseph/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TO: Jessica L. Gibson ( CN=Jessica L. Gibson/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Martha Foley ( CN=Martha Foley/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Tracey E. Thornton ( CN=Tracey E. Thornton/OU=WHO/O=EOP @ EOP [ WHO 1)
READ:UNKNOWN
TO: Lawrence J. Stein ( CN=Lawrence J. Stein/OU=WHO/O=EOP @ EOP [ WHO ])
READ:UNKNOWN
TEXT:
This list is very tentative. It is meant for our internal discussions
only. If you have any questions, please call Tracey.
1.
Patient's Bill of Rights
2.
Education Package
may include School Construction
100,000 Teachers
Teacher Quality
After School Programs
3.
Protecting the Social Security Trust Fund
4.
Income Security
Minimum Wage
Marriage Tax Penalty
Pay Equity
Pension Reform
5.
Crime Package
Juvenile Justice
Extension of COPS
Hate Crimes
VOWA II
.08
6.
Campaign Finance
7.
Child Care Package
Increase child care and development block grant
Block grant to improve quality
Expand eligibility for dependent care tax credit and refundable
Tax break for stay at home moms
Tax credit for employment based child care
Grants for community based programs
After school programs
8.
Environmental Package ??
Brownfields bill
9.
Seniors Package
Medicare buy-in
Administration's long-term care proposal
Reauthorize Older Americans Act
10.
Agriculture Package
? Food Safety
Meat labeling
Price reporting
Trade sanctions
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP [ OPD 1)
CREATION DATE/TIME: 8-JUL-1999 09:36:58.00
SUBJECT: Revised MEMBER Press Release
TO: Caroline R. Fredrickson CN=Caroline R. Fredrickson/OU=WHO/O=EOP@EOP [ WHO ])
READ:UNKNOWN
TEXT:
Forwarded by Sarah Rosen Wartell/OPD/EOP on
07/08/99 09:36 AM
Sarah Rosen Wartell
07/07/99 12:55:31 PM
Record Type: Record
To: Sarah Rosen Wartell/OPD/EOP@EOP
cc: See the distribution list at the bottom of this message
Subject:
Revised MEMBER Press Release
Note: Would the only quotes in this be from Matsui? Someone please check
the reference to mark-up and make sure it is right.
PRESS RELEASE
FROM THE OFFICE OF REPRESENTATIVE ROBERT MATSUI
July , 1999
DRAFT
Representative Robert Matsui (D-CA), joined by Representatives
Robert Andrews (D-NJ), Earl Pomeroy (D-ND), and , today announced their
intent to introduce legislation to secure the "right-to-know" for American
workers, when changes are being made to their private pension retirement
benefits. The new proposal was developed in conjunction with the Clinton
Administration, which also announced its support for the plan today.
Hundreds of employers have converted their traditional defined benefit
pension plans into a different kind of pension known as a &cash balance8
plan. Unfortunately, many workers do not understand how these conversions
affect them. The new plans are especially popular with younger workers,
because ) if they change jobs they can easily transfer a lump sum
distribution to a new pension plan. However, some older workers are
beginning to realize that they their pension will be smaller ) upon
retirement ) than it would have been if their old plan had continued.
Unfortunately, too few employers provide their workers with complete and
meaningful disclosures about how these conversions affect their workers,
ability to earn future pension benefits. Workers should have a right to
know how pension plan changes affect their ability to accrue benefits and
plan for retirement. &Hard working Americans deserve secure retirements,8
said Representative Matsui. &Workers should not be kept in the dark about
how pension plan changes affect them.8
The proposal strikes the right balance between worker rights and plan
efficiency. It would require that employers provide workers with 45 days
advance notice before a plan change takes effect so that workers can ask
questions about the proposed change, obtain advice, and make any necessary
savings or retirement planning changes. However, it has been crafted to
minimize burdens on plan sponsors, avoiding unnecessary or marginally
beneficial paperwork.
&We are committed to working with the President and all our colleagues in
the Congress to advance this legislation during the 106th Congress, as
part of any pension reform bill that moves,8 Representative Matsui added.
The House Ways and Means Committee is scheduled to mark-up pension
legislation shortly after members return from the July 4th Recess. [WOULD
YOU NORMALLY HAVE QUOTES FROM OTHER CO-SPONSORS IN MATSUI,S RELEASE?]
###
[SEE ATTACHED SUMMARY OF PROBLEM AND PROPOSAL]
Message Copied
To:
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sonyia matthews/opd/eop@eop
david W. beier/ovp@ovp
pieter j. boelhouwer/ovp@ovp
mark d. menchik/omb/eop@eop
cordelia W. reimers/cea/eop@eop
laurence Γ. jacobson/omb/eop@eop
bruce d. long/omb/eop@eop
janet r. forsgren/omb/eop@eop
oscar gonzalez/omb/eop@eop
lisa b. fairhall/omb/eop@eop
douglas d. mccormick/omb/eop@eop
[email protected] @ inet
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patrick m. dorton/opd/eop@eop
barry j. toiv/who/eop@eop
charles m. brain/who/eop@eop
ATTACHMENT
1
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The following is a HEX DUMP:
PRESS RELEASE
FROM THE OFFICE OF REPRESENTATIVE ROBERT MATSUI
July , 1999
DRAFT
Representative Robert Matsui (D-CA), joined by Representatives Robert Andrews
(D-NJ), Earl Pomeroy (D-ND), and , today announced their intent to introduce
legislation to secure the "right-to-know" for American workers, when changes are being
made to their private pension retirement benefits. The new proposal was developed in
conjunction with the Clinton Administration, which also announced its support for the
plan today.
Hundreds of employers have converted their traditional defined benefit pension
plans into a different kind of pension known as a "cash balance" plan. Unfortunately,
many workers do not understand how these conversions affect them. The new plans are
especially popular with younger workers, because - if they change jobs - they can easily
transfer a lump sum distribution to a new pension plan. However, some older workers
are beginning to realize that they their pension will be smaller upon retirement - than it
would have been if their old plan had continued.
Unfortunately, too few employers provide their workers with complete and
meaningful disclosures about how these conversions affect their workers' ability to earn
future pension benefits. Workers should have a right to know how pension plan changes
affect their ability to accrue benefits and plan for retirement. "Hard working Americans
deserve secure retirements," said Representative Matsui. "Workers should not be kept in
the dark about how pension plan changes affect them."
The proposal strikes the right balance between worker rights and plan efficiency.
It would require that employers provide workers with 45 days advance notice before a
plan change takes effect so that workers can ask questions about the proposed change,
obtain advice, and make any necessary savings or retirement planning changes. However,
it has been crafted to minimize burdens on plan sponsors, avoiding unnecessary or
marginally beneficial paperwork.
"We are committed to working with the President and all our colleagues in the
Congress to advance this legislation during the 106th Congress, as part of any pension
reform bill that moves," Representative Matsui added. The House Ways and Means
Committee is scheduled to mark-up pension legislation shortly after members return from
the July 4th Recess. [WOULD YOU NORMALLY HAVE QUOTES FROM OTHER
CO-SPONSORS IN MATSUI'S RELEASE?]
###
[SEE ATTACHED SUMMARY OF PROBLEM AND PROPOSAL]
[Automated Records Management System Hex-Dump Conversion]
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Joseph J. Minarik ( CN=Joseph J. Minarik/OU=OMB/O=EOP [ OMB ])
CREATION DATE/TIME:12-JUL-1999 16:24:16.00
SUBJECT: Re: Brain Question re Pension Benefit Guaranty Corporation Report on Pension Reform
TO: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TEXT:
I'm not a technician in this area, but my gut says that we would be better
off expressing opposition to the provision in our overall statement
regarding the bill, instead of having another agency send a letter around
the regular process. Gene and Larry had a conversation about a proposed
ED letter on school construction on Friday, and they came to a similar
conclusion.
From a much more narrow perspective, this letter seems a little more
friendly to the proposal than I would think it should be -- though, again,
I am not a technician in this area. It seems like a way to get money out
of the DB plan reserves and into the pockets of the plan participants --
in the form of the company's own stock, if I read it right -- to the
potential detriment of the Treasury, if anything goes wrong with the DB
plan down the line (and if it is the company's own stock, the risk is
obviously greater than if the holdings were diversified). You may know
all of this stuff better than I do, so if I am off base, tag me out.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP [ OPD 1)
CREATION DATE/TIME:12-JUL-1999 17:35:52.00
SUBJECT: Re: LRM OGG41 - - Pension Benefit Guaranty Corporation Report on Pension Reform
TO: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP@EOP [ WHO ])
READ:UNKNOWN
TO: Janet R. Forsgren ( CN=Janet R. Forsgren/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
CC: laurence r. jacobson ( CN=laurence r. jacobson/OU=omb/O=eop@eop [ OMB D
READ:UNKNOWN
CC: larry Γ. matlack ( CN=larry r. matlack/OU=omb/O=eop@eop [ OMB 1)
READ:UNKNOWN
CC: joseph j. minarik ( CN=joseph j. minarik/OU=omb/O=eop@eop [ OMB ])
READ:UNKNOWN
CC: justine f. rodriguez ( CN=justine f. rodriguez/OU=omb/O=eop@eop [ OMB ] )
READ:UNKNOWN
CC: mark d. menchik ( CN=mark d. menchik/OU=omb/O=eop@eop [ OMB 1)
READ:UNKNOWN
CC: robert 1. nabors ( CN=robert 1. nabors/OU=omb/O=eop@eop [ OMB 1)
READ:UNKNOWN
CC: barbara chow ( CN=barbara chow/OU=omb/O=eop@eop [ OMB D
READ:UNKNOWN
TEXT:
Chuck -- In this case, we're telling him why we oppose a provision he
wants to insert in the bill we are going to veto -- instead of asking him
to add something we like. So, I am not sure if the cases are similar.
The agency doesn't feel strongly however so if it is better not to make
his requested deadline, that's fine.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP [ WHO 1)
CREATION DATE/TIME:12-JUL-1999 16:30:30.00
SUBJECT: Re: LRM OGG41 - - Pension Benefit Guaranty Corporation Report on Pension Reform
TO: Oscar Gonzalez ( CN=Oscar Gonzalez/OU=OMB/O=EOP@EOP. [ OMB 1)
READ:UNKNOWN
CC: Lawrence J. Stein ( CN=Lawrence J. Stein/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
CC: Jacob J. Lew ( CN=Jacob J. Lew/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
Mindy E. Myers ( CN=Mindy E. Myers/OU=WHO/O=EOP [ WHO ])
READ:UNKNOWN
TEXT:
I want to raise a red flag regarding this letter. Presumably English
wants to include his proposal in the Ways and Means tax bill--a bill we
would veto. A letter from the Dept of Ed was killed last week which
advocated inclusion of certain Admin proposals in that bill. Before we go
forward with this letter, I think Jack Lew and Larry Stein should sign
off.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Joseph J. Minarik ( CN=Joseph J. Minarik/OU=OMB/O=EOP [ OMB ])
CREATION DATE/TIME:12-JUL-1999 18:45:20.00
SUBJECT: RE: LRM OGG41 - - Pension Benefit Guaranty Corporation Report on
Pension Reform
TO: Janet R. Forsgren ( CN=Janet R. Forsgren/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
CC: sandra yamin ( CN=sandra yamin/OU=omb/O=eop@eop [ OMB ] )
READ:UNKNOWN
CC: james j. jukes ( CN=james j. jukes/OU=omb/O=eop@eop [ OMB ] )
READ:UNKNOWN
CC: larry r. matlack ( CN=larry r. matlack/OU=omb/O=eop@eop [ OMB ])
READ:UNKNOWN
CC: charles m. brain ( CN=charles m. brain/OU=who/O=eop@eop [ WHO )
READ:UNKNOWN
CC: oscar gonzalez ( CN=oscar gonzalez/OU=omb/O=eop@eop [ OMB 1)
READ:UNKNOWN
CC: laurence r. jacobson ( CN=laurence r. jacobson/OU=omb/O=eop@eop [ OMB D
READ:UNKNOWN
CC: robert 1. nabors ( CN=robert 1. nabors/OU=omb/O=eop@eop [ OMB 1)
READ:UNKNOWN
CC: sarah rosen wartell ( CN=sarah rosen wartell/OU=opd/O=eop@eop [ OPD D
READ:UNKNOWN
TEXT:
Another possibility on this issue would be for Treasury -- if they are
going to send a blanket letter before markup -- to include this provision
in its list of smaller proposals that we would argue against. Have we
seen a Treasury letter or statement?
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Oscar Gonzalez ( CN=Oscar Gonzalez/OU=OMB/O=EOP [ OMB ])
CREATION DATE/TIME: 2-AUG-1999 17:16:27.00
SUBJECT: REMINDER ON LRM OGG67 Pension Benefit Guaranty Corporation Revised Report on Pension
Reform
TO: Janet R. Forsgren ( CN=Janet R. Forsgren/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Ronald E. Jones ( CN=Ronald E. Jones/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Karen Tramontano ( CN=Karen Tramontano/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TO: Broderick Johnson ( CN=Broderick Johnson/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TO: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP@EOP [ WHO ])
READ:UNKNOWN
TO: Laurence R. Jacobson ( CN=Laurence R. Jacobson/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Mark D. Menchik ( CN=Mark D. Menchik/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Pieter J. Boelhouwer ( CN=Pieter J. Boelhouwer/O=OVP@OVP [ UNKNOWN ])
READ:UNKNOWN
TO: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TO: Joseph J. Minarik ( CN=Joseph J. Minarik/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Brian S. Mason ( CN=Brian S. Mason/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Caroline R. Fredrickson ( CN=Caroline R. Fredrickson/OU=WHO/O=EOP@EOP. [ WHO 1)
READ:UNKNOWN
TO: Sandra Yamin ( CN=Sandra Yamin/OU=OMB/O=EOP@EOP [ OMB ])
READ:UNKNOWN
TO: Justine F. Rodriguez ( CN=Justine F. Rodriguez/OU=OMB/O=EOP@EOP [ OMB 1)
READ:UNKNOWN
TO: Michael J. Brien ( CN=Michael J. Brien/OU=CEA/O=EOP@EOP [ CEA ] )
READ:UNKNOWN
TO: Larry R. Matlack ( CN=Larry R. Matlack/OU=OMB/O=EOP@EOP [ OMB ])
READ:UNKNOWN
TO: David W. Beier ( CN=David W. Beier/O=OVP@OVP [ UNKNOWN ] )
READ:UNKNOWN
TO: Natasha F. Bilimoria ( CN=Natasha F. Bilimoria/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TEXT:
This is a reminder that your comments on the PBGC letter o pension reform
were due at 5pm. If you've already responded, please disregard this
message. If you have not, please provide any comments to me ASAP. If I
don't hear from you, I will assume you have no objection to the testimony.
Thanks
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Leanne A. Shimabukuro ( CN=Leanne A. Shimabukuro/OU=OPD/O=EOP [ OPD ])
CREATION DATE/TIME: 3-DEC-1999 09:27:36.00
SUBJECT: Re: FYI--Results of Conversation with Law Enforcement Groups re: 2000 Priorities
TO: Charles J. Payson ( CN=Charles J. Payson/OU=WHO/O=EOP@EOP [ WHO ])
READ:UNKNOWN
CC: Deanne E. Benos ( CN=Deanne E. Benos/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TEXT:
Chip -- Thanks for sending this. I couple of comments I would make would
be on guns and asset forfeiture. You should be very careful how you
characterize the gun piece because the big unions (FOP, NAPO) are
generally not supporting pending gun legislation. They have decidedly
taken no position on most of the pending gun legislation with the
exception of a couple of provisions (not gun shows). The chiefs'
organizations and smaller police groups have been much more supportive,
but the large unions are critical since they carry more weight, generally
speaking. On civil asset forfeiture you should say that this is a top
priorirty for all of the groups, that they strongly oppose reform
legislation proposed by Hyde and Hatch, and that they support an
alternative proposed by Senators Schumer and Sessions (which the
Administration supports).
Also, for collective bargaining and pensions, you might want to make clear
that these are union issues. Collective bargaining is not usually in the
interest of management. And it is Byrne grants.
What were the immigration priorities?
Leanne
Charles J. Payson
12/03/99 08:50:42 AM
Record Type: Record
To:
Leanne A. Shimabukuro/OPD/EOP@EOP, Deanne E. Benos/OPD/EOP@EOP
cc:
Subject:
FYI--Results of Conversation with Law Enforcement Groups
re: 2000 Priorities
Key Law Enforcement Issues for 2000
ú
Pension Reform*as it pertains to the freedom of public employees
or new hires to participate in a retirement system of their choice, i.e.
most are against mandatory participation in Social Security since state,
local and various private retirement systems often provide better benefits
than Social Security.
ú
Domestic Preparedness ensuring adequate funding for training
police officers and sheriffs.
ú
Collective Bargaining.
ú
Continued Funding of the COPS Programi this program received
funding in the FY,00 Budget and the law enforcement organizations want to
ensure that that funding is continued in FY,01, FY,02 etc.
ú
Safety of Senior Citizens*a concern of all organizations, but
specifically the National Sheriff,s Association, with regards to home
security (educating seniors to lock their doors, etc.), financial security
(i.e. telephone, mail and insurance scams), etc.
ú
Immigration Reform.
ú
Legislation to provide retroactive post secondary education
assistance to children (under the age of 21) of police officers killed in
the line of duty after 1978. A law establishing assistance for children
of police officers killed in the line of duty is on the books, but is not
retroactive.
ú
Will continue to push for reasonable gun regulations (i.e.
trigger locks, waiting periods for guns purchased at gun shows); handgun
safety proposals (i.e. providing incentives for hand gun purchasers to
take a gun safety training course); and juvenile justice prevention and
after school care.
ú
Asset Forfeiture Reform.
ú
Increasing money for Byrn Grants to state and local police
officers.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Brian S. Mason ( CN=Brian S. Mason/OU=WHO/O=EOP [ WHO )
CREATION DATE/TIME:14-JUL-2000 20:05:54.00
SUBJECT: insert this paragraph in place of the old pensions one - or just the one sentence in bold
TO: Lauren K. Gillespie ( CN=Lauren K. Gillespie/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TEXT:
Pensions: The House will consider, HR 1102, the Retirement Security and
Pension Reform Act. The Portman-Cardin legislation would increase IRA
limits to $5,000, increase pension contribution, benefits, and deduction
limits, and make other pension changes designed to sweeten pension plans
for higher wage workers. The bill also repeals important worker
protections in pension tax law. Democrats are split on the bill.
Opponents, led by Representative Charlie Rangel (D-NY), will attempt to
amend the bill by adding your RSAs proposal, your refundable tax credits
for contributions to IRAs, and other pieces of your FY 2001 budget
proposal related to retirement savings. The bill will likely pass even
without the Rangel amendment. Democrats have settled on this amendment
strategy in hopes of minimizing their split on this measure.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Ruby Shamir ( CN=Ruby Shamir/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:17-JUL-2000 12:37:03.00
SUBJECT: cab weekly
TO: Eric J. Morse ( CN=Eric J. Morse/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TEXT:
Cabinet Weekly Report, July 8 - 14, page 12
July 14, 2000
MEMORANDUM FOR THE PRESIDENT
FROM:
THURGOOD MARSHALL, JR.
KRIS M. BALDERSTON
SUBJECT:
Summary of Cabinet Weekly Reports
July 8 - 14, 2000
Department of the Treasury
ú
Taxes: On July 12, the House approved Republican legislation
eliminating the marriage penalty, which now moves to the Senate. The
Democratic alternative, which would cost $95B over ten years as opposed to
$182B under the Republican legislation, was defeated on a mostly
party-line vote. The Administration opposes the legislation because it is
too costly, exacerbates marriage bonuses, and is not well targeted to
lower- and middle-income families. On July 13, the House Ways and Means
Committee approved the Comprehensive Retirement Security and Pension
Reform Act, which is based on a bill introduced by Representatives Portman
and Cardin. The legislation increases the Individual Retirement Account
annual contribution limit, allows for catch-up contributions, and
increases the dollar limit on annual elective deferrals under section
401(k) plans and section 403(b) annuities, and weakens anti-discrimination
rules. The Administration has expressed serious concerns regarding these
provisions because they undermine pension coverage for rank and file
workers and do not benefit low- and middle-income workers who lack pension
coverage and other savings. Finally, on July 14, the Senate passed, by a
vote of 59 to 39, legislation repealing the estate tax, which is identical
to legislation passed by the House in June. You have stated that you will
veto the legislation.
ú
Money Laundering: On July 8, at the G-7 Finance Ministers
meeting in Fukuoka, Japan, the U.S. and its G-7 partners announced the
issuance of advisories to domestic financial institutions, calling upon
them to scrutinize transactions involving the 15 jurisdictions identified
by the Financial Action Task Force as having deficient anti-money
laundering regimes. The U.S. advisories notify financial institutions of
the money-laundering risks they face in each of the 15 jurisdictions, and
are meant to encourage the targeted jurisdictions to improve their
anti-money laundering regimes. Those that do not tighten their anti-money
laundering controls could face sanctions or other restrictions from
institutions such as the World Bank. As a result of the advisories, a
number of identified jurisdictions are revising their anti-money
laundering regimes to meet international standards. The jurisdictions
subject to the advisories include Israel, Russia, Liechtenstein, Lebanon,
the Bahamas, Panama, the Philippines, and various other Caribbean and
Pacific island countries.
ú
Holocaust Negotiations: On July 17, Deputy Secretary Eizenstat
is scheduled to travel to Berlin for a final plenary meeting of the
parties in the negotiations on the establishment of the German Foundation
which will make payments to former slaves, forced laborers, and other
victims of the Nazi era. After the plenary, negotiators will sign the
Concluding Joint Statement, which provides an assurance that they will
request the U.S. courts to dismiss their cases, and the Executive
Agreement between the U.S. and Germany, which provides that it would be in
the America,s foreign policy interest for the Foundation to be the
exclusive remedy for the resolution of Nazi era claims against German
companies. The target date for initial payments to victims is the end of
this year.
ú
Mexico: On July 12, Mexico announced that it will treat its IMF
standby arrangement as precautionary, meaning that it will not draw on the
$1.5B available under its IMF program except in the case of an emergency.
It also announced that it is exploring with the IMF the possible early
repayment of all of its outstanding loans, totaling $3.6B. Mexico,s
decision reflects its favorable prospects for continued growth and
stability during its transition to a new government. The change in Mexico,
S relationship with the IMF is consistent with the U.S. view that IMF
lending to countries that normally have access to international capital
markets should only be on a short-term basis, and only when those
countries are experiencing financial difficulties.
ú
National Conventions: On July 12, DOT, the Secret Service, FBI,
and the Metropolitan Police Department (MPD) joined with Attorney General
Reno and the leadership of the DNC to discuss security for the upcoming
Democratic National Convention. The Secret Service, FBI, and MPD briefed
DNC representatives concerning the possible disruption of the events by
large-scale demonstrations and the need to develop plans to deal with any
disruptions. RNC representatives also joined the meeting, just as a DNC
representative attended a similar meeting held previously with RNC
convention planners.
ú
Okinawa Summit: In preparation for the July 21-23 Summit in
Okinawa, Japan, the G-7 Finance Ministers met in Fukuoka, Japan, on July
8. The Finance Ministers released reports to Heads of State entitled
Strengthening the International Financial Architecture and the Impact of
the IT Revolution on the Economy and Finance. The G-7 Finance Ministers
also prepared reports for Heads of State entitled Actions against Abuse of
the Global Financial System and Poverty Reduction and Economic Development
which will be released at the Okinawa Summit.
Department of Justice
ú
Convicted Georgian Diplomat Transferred: On June 29, former
Georgian diplomat Gueorgui Makharadze was transferred from Federal custody
to officials from the Republic of Georgia. here he will face continued
incarceration for a 1997 drunken-driving conviction in DC that resulted in
the death of a 16-year-old girl and injury to four other persons.
Although Makharadze was protected by diplomatic immunity at the time of
the offense, Georgian President Eduard Shevardnadze waived that immunity,
thereby making possible Makharadze,s prosecution.
ú
NYPD Officers Sentenced in Louima Case: On June 27, one NYPD
officer was sentenced to fifteen years and eight months in prison and
ordered to pay $277,495 restitution for participating in the brutal police
assault on Haitian immigrant Abner Louima. In addition, two other NYPD
officers were sentenced to five years in prison for making false and
misleading statements during the investigation of the assault.
Previously, one officer was sentenced to 30 years in prison for his guilty
plea related to the August 1997, assault.
Department of the Interior
ú
CALFED: DOI and the state of CA will be releasing a final
programming Environmental Impact Statement for the CALFED project within
the next two weeks. Work is proceeding on finalization of a Record of
Decision, based on the CALFED framework that was announced in June by
Governor Davis, Secretary Babbitt, and Senator Feinstein. DOI is working
to ensure that the 2001 budget includes funds for CALFED. Your budget
requested $60M.
ú
Kuskokwim River Conservation: The Federal Subsistence Board in
AK has taken emergency action in response to chinook salmon returns in the
Kuskokwim River drainage. In a move that parallels AK,s emergency action
on July 8, the Board adopted 60-day emergency regulations for Federal
waters to restrict drift and set gillnet mesh size, and create a daily
harvest and possession limit. These regulations apply to all subsistence
fishing in Federal waters of the Yukon Delta National Wildlife Refuge in
the Kuskokwim River drainage and are effective immediately. This is the
second consecutive year with poor king salmon returns for the Kuskokwim
River. Subsistence users are reporting very low catches of king salmon
and all king salmon escapement monitoring projects are showing extremely
poor king salmon returns throughout the Kuskokwim River drainage.
Biologists, subsistence users, and the Board fear this may jeopardize the
viability of future king salmon returns. Cabinet Affairs is coordinating
an interagency meeting to respond to this situation.
ú
NJ Offshore Sand and Gravel Sale: Secretary Babbitt recently
decided not to initiate preparation of an EIS or take any other steps
toward conducting a commercial sand and gravel lease sale offshore
northern NJ. The Minerals Management Service published a notice in the
Federal Register on January 10, requesting comments and indications of
interest about the proposal. Secretary Babbitt based his decision on the
volume, breadth, and diversity of the objections raised by those in
opposition to the proposal, as well as his responsibilities with regard to
natural resources.
ú
Bald Eagle: The bald eagle was proposed for delisting on July 6,
1999. The Fish and Wildlife Service (FWS) is reviewing the information
and comments received on the proposed delisting, as well as the scope of
protections available after delisting under the Bald and Golden Eagle
Protection Act and the Migratory Bird Treaty Act. With the arrival of the
one-year deadline for publishing its final decision on the delisting, FWS
is receiving numerous inquiries on the status of its decision. DOI has
developed talking points to help FWS employees respond to questions about
the bald eagle delisting, and expects to make a final decision on the bald
eagle,s status within the next two months.
ú
CO River Delta Lawsuit: Newspapers in southern CA, southern NV,
and AZ reported widely on the June 28 filing of a lawsuit by several
environmental groups against DOI and DOC. Environmental organizations
want a dedicated supply of CO River water to flow to the river,s delta
area in Mexico. The lawsuit alleges that Federal agencies overseeing the
river,s operation and management of the nation,s environmental species are
violating the Endangered Species Act by failing to dedicate river water to
save wildlife from extinction. The groups also want the Multi-Species
Conservation Program, a plan under development by a consortium of state
and federal agencies and Indian Tribes to protect and help recover
endangered species and habitat along the river corridor in the U.S., to be
extended into the delta area in Mexico.
Department of Agriculture
ú
Prion Disease in VT Sheep: On July 3, tests indicated the
presence of a prion disease in three quarantined sheep in VT. The sheep
are from one of two flocks that were imported from Belgium in 1996 and
were quarantined by VT at USDA,s request due to risks associated with
transmissible spongiform encephalopathies in animals from Europe. USDA is
working with other Federal agencies, VT, and the owners to take possession
of the sheep, which will be destroyed to prevent any risk to the public.
ú
Supreme Beef Case Judgment: On July 12, a TX federal court
issued a final judgment confirming its May 25 ruling that USDA is
precluded from using Salmonella performance standards in deciding whether
to close plants within its jurisdiction. The judgment stems from Supreme
Beef,s contention, after failing four successive Salmonella contamination
tests, that the contamination cannot be used as a standard to justify
withholding marks of inspection under current statutes if the
contamination cannot be traced directly to the plant,s processing
procedures. While the judgment precludes the closing of the plant for
Salmonella failures, it takes no position on whether USDA can take those
failures into account when buying products for its various nutrition and
supplementary food assistance programs. Plants in other districts
nationwide continue to meet the requirements of the testing program, and
USDA will continue exploring additional means of enhancing food safety.
ú
Pork Checkoff Referendum: On July 13, the final rule for the
Pork Checkoff Referendum was published. Producers and importers who have
dealt in pigs, hogs, or pork products at any time from August 18, 1999,
through August 17, 2000, are eligible to vote. The rule provides for
in-person voting September 19-21, and for absentee voting from August 18
to September 21. Producer voting will take place at Farm Service Agency
county offices. Importers will vote by mail to FSA headquarters.
ú
Livable Communities Initiative: On July 13, USDA held the first
of four listening forums on farm, ranch, and forest land protection at the
Dekalb County Farm Bureau Center for Agriculture in Dekalb, IL. USDA is
seeking policy feedback and information on protecting land from urban
sprawl. The next forum will be on July 21 in Davis, CA, with additional
forums to be held this summer in Seattle, WA, the NJ highlands, and
possibly Atlanta, GA.
ú
Roadless Environmental Impact Statement (EIS): On July 17, the
public comment period will end on the Proposed Roadless Area Rule and
Draft EIS. The Roadless Team is coordinating with the White House, USDA,
and various Forest Service offices to help assure that any correspondence
held in those offices is forwarded to the team. USDA has received more
than 100,000 responses and has been notified of scheduled deliveries of
more than 500,000 additional responses. A total of 424 public meetings
have been held in connection with the comment period and 50,000 copies of
the Draft EIS and Proposed Rule have been distributed.
ú
Commodity Markets: Wheat prices dropped sharply following USDA
reports that indicated higher-than-expected spring wheat acreage and
stocks. Continued beneficial rain in the Corn Belt drove corn and soybean
prices down. Rice cash prices were unchanged, but futures rose on USDA,s
June 30 forecast of smaller rice acreage. Cotton prices fell slightly on
signs that the cotton crop could be larger than the 19 million bales
forecast by USDA in June. Lower boxed beef prices sent cattle prices
lower in light trade. Cash hog prices slipped last week as rising
temperatures in the Midwest hindered movement, but futures followed belly
prices higher. Retail featuring helped boost broiler prices. Cheese
prices changed little in light trade. Butter averaged up slightly in
volatile trade.
ú
Egg Safety: On July 31, USDA and FDA will hold a public meeting
to make available the agencies, analyses on necessary elements for
proposed regulations ensuring egg safety. The analyses will be posted on
the Internet. The agencies are participating in an Egg Safety Action Plan
as part of your Food Safety Council, with the goal of ultimately reducing
foodborne illness associated with Salmonella by 50 percent, by 2005, and
eliminating egg-associated Salmonella illnesses by 2010. Under the action
plan, FDA develops standards for the egg producer, while states provide
oversight and enforcement on the farm; USDA develops standards for both
shell egg packers and egg product producers, and provides inspection and
enforcement for both; and FDA and CDC conduct surveillance and monitoring
activities.
Department of Commerce
ú
Gulf of Mexico Aquaculture Study: Scientists from the DOC-funded
MS-AL and TX Sea Grant Programs have joined forces to study the potential
of offshore aquaculture in the Gulf of Mexico. Researchers are working
with Chevron to place a 48-foot high fish cage near an oil platform. The
cage is similar to one used in projects launched by Sea Grant programs in
ME, NH, and HI. Ultimately, the researchers hope to stock the cage with
native, high-value species such as snapper, cobia, or amberjack. The goal
of this study is to develop a socially and environmentally acceptable
offshore aquaculture model that is appropriate to all stakeholders in the
Gulf of Mexico region.
ú
Lab Accreditation: On July 13, DOC,s National Institute of
Standards and Technology and the non-profit National Cooperation for
Laboratory Accreditation, signed a memorandum of understanding that marks
a milestone in efforts to develop a national system for laboratory
accreditation and should make it easier for U.S. companies to trade. The
organizations aim to coordinate the more than 100 private-sector and
government programs that assess and accredit U.S. testing and calibration
laboratories. Lack of coordination has led to duplicate and sometimes
contradictory accreditation requirements that disadvantage U.S. businesses
relying on the services of accredited laboratories to make and sell
products at home and abroad.
Department of Labor
ú
Harvest Campaign: On July 13, DOL announced the kick-off of the
Fair Harvest/Safe Harvest campaign involving the distribution of more than
17,000 packets of information to farm worker advocacy groups, agricultural
employer associations, and Mexican Consulates. The information includes a
children,s book illustrating hazards in the agricultural workplace, a
wallet-sized card containing labor rights information, and a poster
highlighting these issues.
ú
Labor Relations: Some 2,000 janitors represented by the Service
Employees International Union (SEIU) ratified a new three-year agreement
with a multi-employer group in the Seattle area on June 30. The agreement
provided an immediate 50-cent-per-hour wage increase with an annual raise
of 40 to 45 cents an hour in each of the next two years.
ú
Veterans Workforce Investment Grants: On July 14, Secretary
Herman will announce that ten states will receive a total of $6.2M in
employment and training grants for veterans under Section 168 of the
Workforce Investment Act.
ú
H-1B Grants: On July 19, Secretary Herman will award grants that
are funded through the H-1B program to nine states (12 programs) totaling
about $29M to train individuals for high skilled jobs.
Department of Health and Human Services
ú
Emerging Infectious Diseases: On July 16-19, CDC will host the
second International Conference on Emerging Infectious Diseases in
Atlanta, GA. The closing session on July 19 will be devoted to West Nile
Virus.
ú
West Nile Virus: Two teams from CDC and the USGS will travel to
NJ and NY to work with State and local officials to study the implications
of recent findings of crows infected with West Nile Virus in the NYC
metropolitan area. Crows appear to be highly sensitive to infection and
the human health implications of these findings are not clear. The teams
will address prevention and control activities including testing of live
birds for West Nile infection, more intensive mosquito collection, and
ecological mapping.
ú
Influenza Vaccine: In 1999, four manufacturers produced a
combined total of 80 to 85 million doses of trivalent inactivated
influenza vaccine. For the 2000-2001 influenza season, lower than
anticipated production yields for this year,s influenza A (H3N2) vaccine
component and other manufacturing problems are expected to lead to a
substantial delay in the distribution of the vaccine and possibly
substantially fewer total doses of vaccine. A more precise estimate of
the vaccine supply will be available as production progresses during the
summer. Because many vaccine providers currently are planning their fall
vaccination activities, CDC and the Advisory Committee on Immunization
Practices (ACIP) are issuing the following adjunct influenza vaccination
recommendations that are specific to the 2000-2001 influenza season. FDA,
CDC, ACIP, NIH, and vaccine manufacturers will continue to work together
to facilitate the availability of the influenza vaccine for the upcoming
season and to minimize the adverse impact of an influenza vaccine shortage
should one develop. If a vaccine shortage appears imminent, CDC and ACIP
will issue further recommendations.
Department of Housing and Urban Development
ú
HUD Headquarters Named to Honor Robert C. Weaver: On July 11,
Secretary Cuomo presided over the renaming of the HUD Headquarters
Building in Washington to honor Robert C. Weaver, the first HUD Secretary
and the first African American member of a President,s Cabinet. Secretary
Cuomo was joined for the renaming by Senator Moynihan and Representative
Rangel, who sponsored the legislation to rename the building the Robert C.
Weaver Federal Building. The building was originally dedicated by Weaver
on September 9, 1968.
ú
Secretary Cuomo Hosts Delegation From Israel: This week,
Secretary Cuomo met in Washington with Israeli officials to continue
efforts to increase the supply of affordable housing, create jobs, spark
economic growth, and revitalize communities in both nations through a new
commission. Officials from the Israeli Construction and Housing Ministry,
the Israeli Finance Ministry, and two public housing companies met with
Secretary Cuomo during a visit to the U.S. that includes stops in New York
and Baltimore. The Israelis spent part of last week in Washington
visiting affordable housing developments run by the DC Housing Authority
to learn how HUD programs are used to provide housing to low- and
moderate-income families.
ú
Neighborhood Networks: Donning caps and gowns, 89 students
received diplomas from the Gateway at Edgewood Terrace Neighborhood
Networks Center,s Career Enhancement Program on June 7. The Class of 2000
is the largest graduating class in the history of the program, which has
seen 80 percent of its former graduates enter the workforce. Graduates
have been hired by major public and private employers such as Fannie Mae,
Ernst & Young, and the DC government.
Department of Transportation
ú
African-American Seat Belt Use: On July 17, during the second
meeting of the Blue Ribbon Panel on Increasing Seat Belt Use among
African-Americans, panelists will set milestones and determine activities
required to meet their objectives, and will develop a list of technical
experts with whom to consult on traffic safety and injury prevention. The
panel will direct its recommendations to government agencies and community
organizations that can champion seat belts use. This effort supports the
Administration,s commitment to achieving 85 percent nationwide seat belt
use by the end of 2000.
ú
Intelligent Vehicle Initiative (IVI): On July 19-20, Secretary
Slater will participate in the first national IVI meeting, and will
challenge the American automotive industry to establish three deployment
goals.
Department of Energy
ú
Heating Oil Reserve: Secretary Richardson directed DOE to offer
an exchange of crude oil from the nation,s Strategic Petroleum Reserve to
companies willing to provide up to two million barrels of emergency
heating oil stocks and the necessary storage facilities in time for this
winter. DOE will offer the crude oil exchange through the Defense Energy
Supply Center, an arm of DOD that routinely procures petroleum products
for the nation,s military.
ú
DOE Appointee: On July 12, General John Gordon was publicly
sworn in as the Under Secretary for Nuclear Security.
ú
Brush Fire at DOE Facility: Lightning caused a brush fire in the
southeast section of the Rocky Flats Environmental Technology Site buffer
zone on July 10, causing the site to activate the Emergency Operations
Center. The fire consumed between 10 and 12 acres and was completely
contained within an hour. Five air monitors are located downwind of the
fire and will be analyzed for isotopic results. The results will be
available in two to three weeks. No contamination was detected on any of
the firefighters.
ú
U.S. Postal Service Electric Vehicles: Ford and Baker
Electromotive passed the U.S. Postal Service acceptance test and delivered
the first six electric long life delivery vehicles to the Postal Service.
These are the first of 500 electric delivery vehicles that the Postal
Service purchased from Ford earlier this year. They will be delivered to
CA for testing and evaluation by the Postal Service, Southern California
Edison, with DOE. Starting in November, ten additional vehicles will be
delivered each week until October 2001.
ú
Energy Emergency Preparedness: DOE sponsored meetings between
state and Federal energy officials and industry to discuss regional plans
for handling electricity blackouts. The meetings were held on July 10-11
in Reno, NV, and on July 13-14 in Newport, RI.
ú
Gasoline Prices: Gasoline spot and futures prices posted sharp
declines in all U.S. markets last week, keeping pace with a similar drop
in crude oil prices. Midwest gasoline markets again showed the largest
drops, with Chicago spot prices down more than 20 cents per gallon.
Prices declined for most regions and formulations east of the Rockies, led
by continuing strong decreases in the Midwest. Prices on the West Coast
continued to rise, reflecting earlier wholesale price increases there.
Total motor gasoline stocks were up 0.6 million barrels from last week to
205.1 million barrels on July 7, but were 9.4 million barrels below the
same week last year.
Department of Education
ú
Class-Action Settlement: On July 6, DOEd settled a class action
filed in 1991 by some of its employees. The complaint alleged that some
of the employment practices at DOEd had the effect of denying promotional
opportunities to African-American employees in the competitive service,
grades 11-15. Approximately 1,100 current and former employees at DOEd,s
Washington office are included in the settlement agreement.
ú
America Goes Back to School (AGBTS): AGBTS, a nationwide
initiative to encourage and support family and community involvement in
improving children,s learning, will run this year from July to October,
emphasizing the importance of summer programs in strengthening students,
skills for their return to school this fall. AGBTS offers numerous
opportunities for education leaders and community members to highlight key
education priorities.
Department of Veterans Affairs
ú
New VA Clinic Addition: On July 24, VA will dedicate a new $47M
clinical addition at the VA Medical Center in Wilkes-Barre, PA,. The
addition will provide over 250,000 outpatient visits per year to veterans
in a 19-county area.
Environmental Protection Agency
ú
Gas Prices: The wholesale price for clean-burning reformulated
gasoline (RFG) remains over one cent per gallon cheaper than conventional
gas (CG) in Chicago and less than five cents per gallon more expensive
than CG in Milwaukee. Meanwhile, press reports indicate that the two
organizations in those states that had initially requested waivers from
the new RFG requirements* the IL and Wisconsin Petroleum Marketers
Associations have now withdrawn support for waivers, since retailers have
already stocked up on RFG. EPA continues to believe that gasoline
supplies in the region are adequate and that the RFG program is not
responsible for the unreasonably high prices that consumers in Chicago and
Milwaukee have been paying for clean-burning gasoline. EPA estimates that
RFG should only cost four to eight cents more than CG and actual prices
are proving to be lower than that range in most of the country.
ú
TX Air Quality: Last week, EPA received a request from TX
Governor Bush and the TX Natural Resource Conservation Commission (TNRCC)
regarding the process of designating areas under EPA,s eight-hour ozone
standard. TNRCC asked EPA to delay the designation process until
litigation surrounding the standard is resolved in the court system. EPA
expects to respond to TX and other states that have raised concerns over
the designation process for the eight-hour standard by early next week.
Press reports indicate that citizen and environmental groups in TX are
highly critical of the request.
U.S. Mission to United Nations
ú
HIV/AIDS: On July 17, the Security Council is scheduled to hold
an Open Debate on the impact of HIV/AIDS on international peace and
security. The session stems from an initiative of Ambassador Holbrooke,
who will be speaking during the session. The U.S. Mission hopes to adopt
an HIV/AIDS resolution at that time, or soon thereafter, asking
troop-contribution states to ensure they are taking precautions with the
soldiers they send on peace-keeping missions.
United States Trade Representative
ú
Japan Talks: On July 17, following up on your July 20 meeting
with Prime Minister Mori, Ambassador Barshefsky will travel to Tokyo for
talks on telecommunications and other deregulation issues related to the
Enhanced Deregulation Initiative. On the issue of telecom
interconnection, the U.S. rejected a proposal tabled by Japan that
entailed small cuts over a long period of time. The Deputy USTR will
travel to Japan mid-week with the goal of finalizing the text of the Third
Joint Status report.
Small Business Administration
ú
SBA,s WebSite: SBA,s award-winning website reached a record of
9.5 million hits this week. By offering a wide range of products and
services, the site has been an important resource for small businesses
needing help to start or grow their business. Since its launch in 1994,
the site has won 14 prestigious awards.
Office of Personnel Management
ú
Federal Career Intern Program: On July 10, OPM unveiled the
Federal Career Intern Program, a program designed to make the Federal
government a more attractive employer. The intern program, established by
your Executive Order, offers participants unrivaled professional
experiences and training opportunities that are tailored to meet their
professional goals. Individuals hired into the program will fill
professional, administrative, or technical jobs in Departments and
Agencies through excepted service appointments for up to two years at
grades GS-5 through GS-9. Employees who successfully complete the
internship are eligible for conversion to the competitive civil service.
Social Security Administration
ú
Internet Replacement Medicare Card Service: On July 11, SSA and
HCFA launched a new service through the Internet' replacement Medicare
cards. Customers can now request replacement Medicare cards via SSA,s
website. In developing the site, SSA consulted privacy experts and added
enhanced security features to allay privacy concerns.
cc:
The Vice President
John Podesta
Martin Baily
Sandy Berger
Sidney Blumenthal
Chuck Brain
Charles Burson
Mary Beth Cahill
Maria Echaveste
George Frampton
Mickey Ibarra
Ben Johnson
Joel Johnson
Janis Kearney
Neal Lane
Jack Lew
Joe Lockhart
Lisel Loy
Buddy MacKay
Minyon Moore
Bruce Reed
Steve Ricchetti
Gene Sperling
Lauren Supina
Loretta Ucelli
Melanne Verveer
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: "Thompson, Moya" <[email protected]> ( "Thompson, Moya" <[email protected]>
[ UNKNOWN D
CREATION DATE/TIME:20-JUL-2000 12:17:35.00
SUBJECT: RE: SAP Statement on H.R. 1102 - Comprehensive Retirement Securit y and Pension Reform Act
TO: Barbara D. Woolley ( CN=Barbara D. Woolley/OU=WHO/O=EOP [ WHO ])
READ:UNKNOWN
TEXT:
no idea on senator
i am hearing tomorrrow maybe
>
Original Message
> From: [email protected]
[SMTP:[email protected]]
> Sent: Thursday, July 20, 2000 12:12 PM
> To: Thompson, Moya
> Subject: RE: SAP Statement on H.R. 1102 - Comprehensive Retirement
>
Securit y and Pension Reform Act
>
> so are you hearing who the senator was? any news are rescheduling
markup?
>
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Grace E. Yu ( CN=Grace E. Yu/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:20-JUL-2000 10:43:45.00
SUBJECT: Summary of defeated Santorum amdt
TO: Joel K. Wiginton ( CN=Joel K. Wiginton/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TEXT:
Hi Joel,
Can I distribute the Santorum New Markets Bill summary below?
GEY
Forwarded by Grace E. Yu/WHO/EOP on 07/20/2000
10:42 AM
Mark D. Magana
07/18/2000 06:31:53 PM
Record Type: Record
To:
Grace E. Yu/WHO/EOP@EOP
cc: Joel K. Wiginton/WHO/EOP@EOP
Subject:
Summary of defeated Santorum amdt
This contains a non WH summary of the Santorum New market bill. Joel can
advise you as to whether or not you should distribute.
mark
Forwarded by Mark D. Magana/WHO/EOP on 07/18/2000
06:30 PM
Clifton G. Kellogg
07/16/2000 09:22:02 AM
Record Type: Record
To:
See the distribution list at the bottom of this message
cc:
Subject:
Summary of defeated Santorum amdt
FYI
Forwarded by Clifton G. Kellogg/OPD/EOP on
07/16/2000 09:21 AM
From: Ingrid M. Schroeder on 07/14/2000 10:51:10 PM
Record Type: Record
To: See the distribution list at the bottom of this message
cc: Karen N. Blank/OMB/EOP@EOP, Marshall J. Rodgers/OMB/EOP@EOP
Subject:
Summary of defeated Santorum amdt
Forwarded by Ingrid M. Schroeder/OMB/EOP on
07/14/2000 10:52 PM
From: James J. Jukes on 07/14/2000 09:21:57 AM
Record Type: Record
To:
Ingrid M. Schroeder/OMB/EOP@EOP
cc:
Subject:
Summary of defeated Santorum amdt
Forwarded by James J. Jukes/OMB/EOP on 07/14/2000
09:19 AM
Friday July 14, 2000
Primary Source Material
Legislation
Legislation
Summary of Rejected Amendment (American Community Renewal and New Markets
Empowerment Act) by Sens. Rick Santorum (R-Pa.) and Joseph Lieberman
(D-Conn.) to Estate Tax Relief Act of 2000 (H.R. 8)
Document Date: July 13, 2000
BACKGROUND INFORMATION ON
SANTORUM-LIEBERMAN AMENDMENT TO
H.R. 8, THE DEATH TAX ELIMINATION ACT
Attached:
Summary of Legislation
Press Release
List of Supporting Organizations
Opinion Piece
CONTACT: MELISSA SABATINE (SANTORUM) 224-6324
Melissa [email protected]
DAN GERSTEIN (LIEBERMAN) 224-4041
[email protected]
FOR IMMEDIATE RELEASE JUNE 22, 2000
CONTACT: Melissa Sabatine (SANTORUM) 202-224-7749
Dan Gerstein (LIEBERMAN) 202-224-4041
BIPARTISAN COALITION OF SENATORS UNVEILS PLAN TO EMPOWER COMMUNITIES
WASHINGTON, DC) At a Capitol Hill press conference today, a bipartisan
coalition of United States Senators unveiled an expanded version of the
Clinton-Hastert economic empowerment plan, The American Community Renewal
and New Markets Empowerment Act. The comprehensive legislation would
create economic incentives to invest in low-income communities, enhance
educational and housing opportunities, and help low-income families save
and invest for the future.
Senators Rick Santorum (R-PA) and Joseph Lieberman (D-CT), Co-Chairs of
the Congressional Empowerment Caucus, were joined at the press conference
by original cosponsors Senators Spence Abraham (R-MI) and Tim Hutchinson
(R-AR). Senators John Kerry (D-MA), Herb Kohl (D-WI) and Robert Torricelli
(D-NJ) are also original cosponsors.
&More than ever before, Americans recognize a desperate need to strengthen
families and to empower those who struggle economically despite the
current economic boom,8 said Santorum. &Our national priorities must focus
on social and cultural renewal in order to address these issues and make a
lasting difference in the lives of those we seek to help. This legislation
represents a bipartisan effort to reach out to our distressed communities
and give them the tools to create hope and prosperity.8
Senator Lieberman said, &The legislation we introduce today really is a
model of cooperation and innovation. It combines much of the President,s
New Markets initiative and the Republican-favored American Community
Renewal Act into a progressive new synthesis for stimulating investment,
entrepreneurship, and economic opportunity in disadvantaged communities.8
The American Community Renewal and New Markets Empowerment Act is a
bipartisan package that reflects the agreement reached between President
Clinton and Speaker Hastert. The Senate has added and expanded additional
bipartisan initiatives which will provide more opportunities for wealth
creation, improved access to technology, more affordable housing,
additional resources for local governments, and prevent discrimination
against faith-based charitable service providers.
These provisions are:
INDIVIDUAL DEVELOPMENT ACCOUNTS: In order to encourage wealth creation
nationwide, Individual Development Accounts (IDAs) are special matched
savings accounts which provide tax credits that will enable more working
low-income families to save, build wealth and enter the financial
mainstream through the use of an innovative new financial instrument.
THE NEW MILLENNIUM CLASSROOMS ACT: To increase the amount of computers
donated to schools, libraries, seniors centers, and nonprofit vocational
training centers in economically disadvantaged areas, the New Millennium
Classrooms Act would expand the parameters of the current tax deduction
and add a tax credit.
RENEWAL COMMUNITIES: Creates 50 Renewal Communities with targeted,
pro-growth tax benefits, regulatory relief, brownfields clean-up, and
homeownership opportunities (the Hastert/Clinton package includes 40
Renewal Communities). At least 20 percent of the communities identified
must be located in rural areas. Requirements for communities applying for
Renewal Community status include high poverty rates and a local commitment
to reducing local regulations, zoning restrictions and tax rates. Each
state will have one Renewal Community.
EMPOWERMENT ENTERPRISE COMMUNITIES: Fully funds Round II of the
Urban/Rural Empowerment Zones and Enterprise Communities program. Urban
Empowerment Zones includes Boston, Massachusetts, Cincinnati, Ohio,
Cobumbia/Sumter, South Carolina, Columbus, Ohio, Cumberland County, New
Jersey, El Paso, Texas, Gary/East Chicago, Indiana, Huntington, West
Virginia, Ironton, Ohio, Knoxville/Knox County, Tennessee,
Miami/Miami-Dade County, Florida, Minneapolis, Minnesota, New Haven,
Connecticut, Norfolk/Portsmouth, Virginia, Santa Ana, California, St.
Louis, Missouri/East St Louis, Illinois.
Rural Empowerment Zones include Desert Communities Empowerment Zone,
California (parts of Riverside County), Steele-Griggs County Empowerment
Zone, North Dakota (part of Griggs County and all of Steele County),
Oglala Sioux Tribe Empowerment Zone, South Dakota (parts of the Pine Ridge
Indian Reservation), Southernmost Illinois Delta Empowerment Zone,
Illinois (parts of Alexander, Johnson, and Pulaski Counties), and
Southwest Georgia United Empowerment Zone, Georgia (parts of Crisp County
and all of Dooly County).
LOW-INCOME HOUSING TAX CREDIT: As an incentive to create more and better
affordable rental housing for low-income individuals, a tax credit is
available to owners of rental properties that are rented to low-income
individuals and meet certain other requirements. The amount of low-income
housing tax credits available in each state is currently limited by an
annual volume limit of $1.25 per state resident. The bill would
immediately increase the amount to $1.75 per state resident in 2001 and
adjust subsequent increases to inflation.
PRIVATE ACTIVITY BONDS: State and local governments may issue &tax-exempt8
bonds, the interest on which is not subject to Federal income tax. These
bonds may be issued for variety of purposes, including to fund
infrastructure, housing for low and middle income individuals, student
loans, small manufacturing facilities, and redevelopment. These bonds,
however, are subject to State-by-State limits based upon population. The
bill will immediately increase to $75 per resident (or $225 million, if
greater) in 2001 and index subsequent increases to inflation.
CHARITABLE CHOICE ANSION: Expansion of the current charitable choice
provisions in welfare reform and Community Services Block grants. Allows
charitable and faith-based organizations to compete for contracts or
participate in voucher programs on an equal basis with other private
providers whenever the federal, a state, or a local government chooses to
use non-governmental providers to deliver services. The provision
preserves the religious character of faith-based institutions, without
diminishing the religious freedom of beneficiaries.
SENATE COMMUNITY RENEWAL AND NEW MARKETS EMPOWERMENT PACKAGE
RENEWAL COMMUNITIES: Creates 50 Renewal Communities with targeted,
pro-growth tax benefits, regulatory relief, brownfields dean-up, and
homeownership opportunities. At least 20 percent of the communities
identified must be located in rural areas. Requirements for communities
applying for Renewal Community Status include high poverty rates and a
local commitment to reducing local regulations, zoning restrictions and
tax rates. Each state will have one Renewal Community.
Benefits to Renewal Communities:
ú Zero Capital Gains Rate: Individuals will pay no capital gains taxes on
the sale of Renewal Communit7 businesses or business assets held more than
5 years.
ú Increased Expensing for Small Business: Small businesses located in a
Renewal Community would be eligible to expense (i.e. deduct immediately
rather than depreciate overtime) up to $35,000 (from the current $19,000
in equipment which they are able to expense under current law).
ú Employment Wage Credit: Like businesses located in an empowerment zone,
a business located in a Renewal Community would be eligible for a 15
percent wage credit for the first $15,000 of wages through 2004 and 20
percent from 2005 through 2009 for each Community resident employed.
ú Brownfields: A business located in a Renewal Community would be eligible
to expense certain environmental remediation costs, like businesses
located in empowerment zones.
ú Commercial Revitalization Deductions: A special deduction would be
available to taxpayers who rehabilitate or revitalize buildings located in
a Renewal Community.
EXISTING ZONES: First, Empowerment Zones tax incentives would be upgraded
and standardized, with all Empowerment Zones being eligible for the wage
credit and all Empowerment Zone tax incentives extended through 2009.
Second, nine new Empowerment Zones (seven urban and two rural) would be
authorized. Third, a new tax incentive will be added for all zones that
allows tax free rollovers to occur for investments that are reinvested in
the zone
FULL FUNDING OF' ROUND II: The package provides for full funding of the 20
Empowerment Zones included in Round II of the EZ/EC program.
NEW MARKETS TAX CREDIT: Taxpayers who invest in certain community
development entities that make investments and loans in low-income areas
would receive a tax credit deigned to offset costs associated with their
investment.
NEW MARKETS VENTURE CAPITAL: Designed to spur venture capital investment
in small companies in distressed areas, the Small Business Administration
would license up to 20 New Markets Venture Capital Companies (NMVCs) that
leverage government guaranteed debentures of up to $10 million to raise
private investment capital. NMVCs would also receive grants, which
together with matching funds, will enable them to provide intensive
technical assistance to the small businesses.
AMERICA'S PRIVATE INVESTMENT COMPANIES: APIC's would be privately managed,
for profit investment companies licensed by HUD for the purpose of making
equity and debt investments for large-scale projects, such as shopping
centers and manufacturing facilities, that locate in distressed urban and
rural areas. An APIC must have at least,S25 million in private equity
capital in order to be licensed and would be. eligible to issue
debentures, guaranteed by the government; for twice (200 percent) the
mount of its total equity capital.
FAITH-BASED SUBSTANCE ABUSE TREATMENT: Allows faith-based substance abuse
treatment program to apply and receive federal assistance without
discrimination based on the' religious character of the program:
Beneficiaries maintain the .fight to an alternative option
HOMEOWNERSHIP: Provides for the sale of the Department Of Housing and
Urban Development (HUD) owned unoccupied or substandard homes and housing
projects located in low-income neighborhoods to community development
corporations in order to provide better housing opportunities to
low-income families.
LOW- INCOME HOUSING TAX CREDIT: As an incentive to create more and better
affordable rental housing for low-income individuals, a tax credit is
available to owners of rental properties that are rented to low-income
individuals and meet certain other requirements. One of the requirements
is that owners must have received a credit allocation from the relevant
State agency. The mount of low-income housing tax credits available in
each state is currently limited by an annual volume limit of $1.25 per
state resident. The bill would immediately increase the mount to $1.75 per
state resident in 2001 and adjust subsequent increases to inflation.
PRIVATE ACTIVITY BONDS: State and local governments may issue "tax-exempt"
bonds, the interest, on which is not subject to Federal income tax. These
bonds may be issued for a variety of purposes, including to fund
infrastructure, housing for low and middle income individuals, student
loans, small manufacturing facilities, and redevelopment These bonds,
however, are subject to State-by-State limits based upon population, The
bill will immediately increase to $75 per resident (or $225 million, if
greater) in 2001 and index subsequent increases to inflation.
INDIVIDUAL DEVELOPMENT ACCOUNTS:' In order to encourage wealth creation
nationwide, Individual Development Accounts 0DAs) are special matched
savings, accounts which provide tax credits that will enable more working
low-income families to save, build wealth and enter the financial
mainstream through the use of an innovative new financial instrument. IDAs
would be available to citizens or legal residents of the U.S. at least 18
years or older, and whose household income does not exceed 80 percent of
the area median income (AMI), with at least 33 percent of the IDAs
available to households at 50 percent or below of the AMI. Eligible
individuals may use their IDA. for the benefit or their spouse or
dependent. All IDAs must be held at a qualified financial institution,
which is any financial institution eligible to hold an Individual
Retirement Account (IRA).
IDAs are restricted to three uses: (1) buying a first home; (2) pursuing
post-secondary education or training; or 0) starting or expanding a .small
business. Individual and matching deposits are not co-mingled with
matching dollars kept in a separate parallel account. When the account
holder has accumulated enough savings and matching funds to purchase the
asset (typically over two to four years), and has completed an approved
financial education course provided by the qualified financial institution
or non-profit organization, payments from the IDA will be made directly to
the asset provider. Both private sector .and public funds could also be
contributed to the accounts. Individual deposits up to $10,000 would be
disregarded in determining eligibility for other federal programs.
Tax Credits for Financial Institutions: Financial Institutions would be
eligible for two credits: (1) a 90%' federal tax credit (limited to $90
million per year per institution) for all matching funds provided; and (2)
a 50% federal tax credit to help cover financial education, monitoring,
and administrative costs (limited to $1.5 million per year per
institution). CKA credits would not be available for any costs reimbursed
through these federal tax credits (that is, financial institutions can
claim tax credits or CRA credits, but not both).
Tax Credits for Investments in Non-Profits: To leverage private sector
investments and .community involvement in IDAs, a 50% tax credit shall be
available to any taxpayer (corporate or individual) for direct investments
in qualified non-profits (501)(c)(3)s, credit unions, or CDFIs)
administering IDA programs. Funds received may be used for matches,
financial education, monitoring and program administration, with at least
70% used for matches. The credit is capped at $5 million per year per
taxpayer (thus, there's a $3.5 million cap for matches and a $1.5 million
cap for all other costs).
THE NEW MILLENNHTM CLASSROOMS ACT: To increase the mount of technology
donated to schools, libraries, seniors centers, and nonprofit vocational
training centers in economically disadvantaged areas, the New Millennium
Classroom Act would expand the parameters of the current tax deduction and
add a tax credit. Specifically, the bill would do the following.
ú Enhance tax credits equal to 50 percent of the fair market value of the
equipment donated to schools located within qualified low-income
communities.
ú Expand the ago limit to include equipment three years old or less.
ú Expand the current limitation on &original use,, to include the
original., equipment manufacturers or any corporation that reacquires the
equipment.
ú Expand the definition of eligible donees to include non-profit senior
centers, as defined by the Older Americans Act of 1965.
ú Mandates that the donated computers must be equipped with an operating
system, for the donor company to qualify for the enhanced tax credits.
CHARITABLE CHOICE EXPANSION: Expansion of the current charitable choice
provisions in welfare reform and Community Services Block grants. Allows
charitable and faith=based organizations to compete for contracts or
participate in voucher programs on an equal basis with other private
providers whenever the federal government, a state, or a local government
chooses to use non-governmental providers to deliver services. The
provision preserves the religious character of faith-based institutions,
without diminishing the religious freedom of beneficiaries.
Senate Community Renewal and New Markets
Empowerment Package
Supporting Groups
INDIVIDUAL DEVELOPMENT ACCOUNTS (ADAs)
Financial
Credit Union National Association
The Financial Services Roundtable
National Federation of Community Development Credit Unions Shorebank
Associations
National Associations of Home Builders
Consumer Federation of America
Association for Enterprise Opportunity
National Congress for Community Economic Development
Nonprofit/Policy
The Empowerment Network
Institute for Responsible Fatherhood
Education, Training and Enterprise Center
National Center for Neighborhood Enterprise
National Council for La Raza
Progressive Policy Institute
Economic Security 2000
Bill Bynum, Enterprise Corporation of the Delta
Jane Milley, Jobs for the Future
Academic
Center for Social Development, Washington University
Edward Wolff, Professor of Economics, New York University
Laurence Seidman, Professor of Economics, University of Delaware
PRIVATE ACTIVITY BONDS
National Governors, Association
National Conference of State Legislatures
National Association of State Treasurers
Government Finance Officers Association
National Association of Counties
National Association Towns and Townships
International City/County Management Association
United States Conference of Mayors
National Council of State Housing Agencies
Council of State Community Development Agencies
Association of Local Housing Finance Agencies
Mortgage Bankers Association of America
National Association of Home Builders
National Associations of Realtors
Fannie Mae
Freddie Mac
The Enterprise Foundation
Local Initiatives Support Corporation
National Low Income Housing Coalition
Affordable Housing Tax Credit Coalition
AFL-CIO Housing Investment Trust
American Association of Homes and Services for the Aging
American Institute of Architects
American Seniors Housing Association
Council for Affordable and Rural Housing
Home Improvement Lenders Association
Institute for Responsible Housing Preservation
National Affordable Housing Management Association
National Apartment Association
National Association of Affordable Housing Lenders
National Association of Redevelopment Officials
National Association of State and Local Equity Funds
National Community Development Association
National Cooperative Bank
National Housing and Rehabilitation Association
National Housing Conference
National Housing Trust
National Multi-Housing Council
National Renovation Lenders Association
National Trust for Historic Preservation
American Public Gas Association
Association of Metropolitan Sewerage Agency
The Bond Market Association
Council of Development Finance Agencies
Council of Infrastructure Financing Authorities
Education Finance Council
LOW-INCOME HOUSING TAX CREDIT
National Governors, Association
National Conference of State Legislatures
National Association of Counties
United States Conference of Mayors
National Council of State Housing Agencies
Association of Local Housing Finance Agencies
Mortgage Bankers Association of America
National Association of Home Builders
National Association of Realtors
Fannie Mae
Freddie Mac
The Enterprise Foundation
Local Initiatives Support Corporation
National Low Income Housing Coalition
AFL-CIO Housing Investment Trust
Affordable Housing Tax Credit Coalition
American Association of Homes and Services for the Aging
American Bankers Association
American Institute of Architects
American Seniors Housing Association
Catholic Health Association of the United States
Council for Affordable and Rural Housing
Home Improvement Lenders Association
Institute for Responsible Housing Preservation
McAuly Institute
National Affordable Housing Management Association
National Alliance to End Homelessness
National Apartment Association
National Association of Affordable Housing Lenders
National Association of Housing Redevelopment Officials
National Association of Housing Partnerships
National Association of Local and State Equity Funds
National Community Development Association
National Congress For Community and Economic Development
National Cooperative Bank
National Housing and Rehabilitation Association
National Housing Conference
National Leased Housing Association
National Multi-Housing Council
National Neighborhood Housing Network
National Renovation Lenders Association
National Rural Housing Coalition
National Trust for Historic Preservation
NEW MILLENNIUM CLASSROOMS ACT
Computers for Schools Association
National Education Association
National Christina Foundation
CompTIA
U.S. Chamber of Commerce
Technology Workforce Coalition
Computer Reclamation Inc.
National Association of School Principals
Goodwill Industries International, Inc.
Consumer Electronics Association
National Association of Manufacturers
Information Technology Assoc. of America
Geoffrey M. Champion, Managing Director, Global Advance
Korn/Ferry International
Paul Folino, President and CEO, Emulex Corp
David W. Hanna Chairman, Hanna Capital Management
Gene Hoffman, Founder, President and CEO Emusic
Dwight Decker, President, Chairman, and CEO
Conexant Systems, Inc.
Dean DeBiase, President, CEO, and Director, Autoweb.com
Randy Williams, President and CEO, Williams Company
Aart deGeus, CEO, Synopsys
Ron Lawless, Member, Illinois State Board of Education
Guy Hoffman, Venture Partners, TL Ventures
Stuart H. Wolff, Ph.D. Chairman and CEO
Homestore.com
John Kernan, Chairman CEO
Lightspan, Partnership, Inc.
David A. Lane General Partner, Alpine Technology Partners
Thomas S. Fornoff, Vice President, Human Code Inc
Toni Casey, President, T.Casey and Associates
Elise Mooney, Teacher, Murray Language Academy, Chicago, IL.
Parties toss old formulas in fresh
effort to help cities
For reasons that are both promising and puzzling, Congress may be prepared
to address once again the question of how to help inner cities, an issue
it has evaded for years.
The American Community Renewal and New Markets Empowerment Act is the
result of nine months of negotiations between the White House and House
Speaker Dennis Hastert (R., III.). The parties forged a new kind of
political compromise: Instead of splitting their differences, both sides
got everything they wanted.
The result is a fascinatingly multifaceted bill that is expected to pass
the House before the Fourth of July (possibly by a unanimous vote). A
bipartisan group led by Sens. Rick Santorum (R., Pa.) and Joseph Lieberman
(D., Conn.) introduced the bill last week in the Senate. Among the
Democratic cosponsors is Sen. Robert Torricelli (D., N.J.).
If it is enacted, there would follow, in effect, a contest to see which
works better: 40 (or perhaps 50) "renewal communities" testing the
efficacy of Republican-advocated tax breaks, or 40 empowerment zones that
make greater use of the social programs Democrats like. (The
empowerment-zone idea is not new, but the number of the zones would be
increased, and they would get more funding.)
Republicans won expanded federal assistance for faith-based organizations,
particularly substance- abuse programs, although it has become harder to
identify this as a Republican strategy ever since both presidential
candidates endorsed the concept.
The Senate bill adds perhaps the most novel idea in the package:
Individual Development Accounts. These are bank savings accounts for
low-income Americans. Every dollar that a household saves is matched by
the banking institution, which gets a federal tax credit covering most of
its contribution.
These accounts can be used to buy a home, start a business or finance
education. Small-scale tests show that these accounts .really can help
low-income families accumulate the assets needed to escape the poverty
cycle. Lieberman and Santorum have been pushing the concept hard.
The legislation also includes several vehicles of mixed Republican and
Democratic provenance whose ultimate effect is to offer hefty tax credits
for venture capitalists who invest in distressed urban and rural areas.
Other provisions create a low-income housing tax credit to spur
construction of affordable rental housing, allow HUD to sell unoccupied
houses to community development corporations, and expand the tax credits
available to companies that donate computers to schools, libraries and
training centers.
But the actual provisions of the bill, most of which have been knocking
around for years, may be less intriguing than this question: What changed
to make aid for cities a viable issue again?
Except for a few programs that included beneficial effects for cities,
such as the 10,000 police officers initiative, urban aid has been off the
table since at least 1992, the year of the Los Angeles riots.
Back then, it was widely expected that Congress would respond to the riots
as it had in the past, with an urban aid bill. The David Dinkins
administration in New York City even compiled a "wish list" of items and
wired it to the city's congressional representatives for inclusion in the
presumed legislation.
Congress, however, after some dithering, did nothing, an inaction that
signaled bipartisan frustration over the ineffectiveness of federal urban
programs. Democrats admitted that they were out of ideas; Republicans
professed to believe that a rising economy would eventually benefit the
inner cities.
Explaining why he thought there would now be broad support for the new
legislation, Lieberman linked the changing ideological perspectives of the
two parties. "Democrats have seen that 30 years of government social
programs didn't work, and Republicans have now seen that after nine years
of the greatest economic boom in history there are still communities that
have been left behind. Clearly, it is time to try some new ideas."
Santorum sees the legislation as combining the Republican belief in the
energizing effect of tax cuts with the Democratic instinct of targeting
depressed areas for assistance. "This bill represents the tax cuts that
Republicans probably like least," he said, "and Democrats like best."
Gene Sperling, the White House aide who did much of the negotiating with
Hastert's staff, described the bill as "the coming together of Bill
Clinton and Jack Kemp." Kemp, a longtime advocate of tax incentives, was
head of HUD under Ronald Reagan.
The approach is different from most past efforts to aid cities. The
proposed legislation sets up no programs, provides no new services, and
largely bypasses the state and city bureaucracies. The benefits accrue
directly to individuals, businesses and community groups in the distressed
areas.
This approach has increasingly been advocated by an assortment of
center-left and center-right caucuses and coalitions. Lieberman gleefully
noted that Santorum used the phrase "a third way" to describe the
legislation, a term coined by the Democratic Leadership Council, which
Lieberman heads (and which President Clinton once led). Still, many of the
ideas in the bill come directly from the agenda of the Republican "Renewal
Alliance," which Santorum chairs.
Rep. Rob Andrews (D., N.J.) thinks that the rise of these centrist
organizations has "broken down the positions at the ideological extremes"
and paved the way for this kind of legislation. Andrews was one of the
original leaders of The Empowerment Network (TEN) that has become a
national umbrella group that brings together centrist members of Congress
and state legislatures with grassroots community organizations.
Andrews has been saying for years that President Clinton could be most
effective if he tried to work with a centrist coalition in the Congress,
rather than trying to work from the left inward, as he did earlier in his
presidency. "Now he is," Andrews says, "and it works. We have a
functioning national government in Washington."
To be sure, the legislation has its critics - on both the left and the
right. Bruce Katz, head of the Brookings Institution's Center on Urban and
Metropolitan Policy, thinks the incentives will not take hold unless
something is done to improve the effectiveness of city governments. He
favors more federal and state intervention to accomplish that.
Ronald Utt, Katz's counterpart at the right-of-center Heritage Foundation,
is glad that "having tried everything else, they're now going to give
capitalism a chance" in the inner city, but he doubts that tax incentives
by themselves can change the culture in those communities enough to make
real economic revitalization possible.
These concerns were reflected at the press conference held to announce the
introduction of the legislation. "Make no mistake," Santorum said, "there
are members of my party who will see this as too much government
meddling."
"And members of mine," Lieberman cut in, "who will see it as not enough
government meddling."
David Boldt's column appears on Wednesdays and Fridays. His e-mail address
is [email protected]
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Copyright (c) 2000 by The Bureau of National Affairs, Inc., Washington
D.C.
Message Sent
To:
Clifton G. Kellogg/OPD/EOP@EOP
Yvette M. Dennis/OMB/EOP@EOP
Francis S. Redburn/OMB/EOP@EOP
Alexandra Gianinno/OMB/EOP@EOP
Alan B. Rhinesmith/OMB/EOP@EOP
Message Sent
To:
Andrea Kane/OPD/EOP@EOP
Margy Waller/OPD/EOP@EOP
Sarah Rosen Wartell/OPD/EOP@EOP
Joel K. Wiginton/WHO/EOP@EOP
Mark D. Magana/WHO/EOP@EOP
Phyllis A. Love/OVP/EOP@EOP
Alvin Brown/OVP/EOP@EOP
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: David W. Beier ( CN=David W. Beier/OU=OVP/O=EOP [ OVP ])
CREATION DATE/TIME:31-AUG-2000 15:03:17.00
SUBJECT: Draft memo to the VP
Comments welcome. Thanks. Please return to me and Andrew Schneider.
TO: Charles M. Brain ( CN=Charles M. Brain/OU=WHO/O=EOP@EOP [ WHO ])
READ:UNKNOWN
TEXT:
Forwarded by David W. Beier/OVP/EOP on 08/31/2000
03:02 PM
David W. Beier
08/31/2000 09:49:44 AM
Record Type: Record
To:
Andrew F. Schneider/OVP/EOP@EOP
cc:
Subject:
Draft memo to the VP
To/From
The President met with Speaker Hastert on Air Force One on the way
back from Columbia. This memo summarizes those conversations.
New items:
Trade:
The President agreed to explore giving Columbia parity
with the Caribbean Basin. This commitment will be very difficult to
accomplish and could complicate other trade agreements with earlier places
in line, including Jordan, Chile, South East Europe and Viet Nam.
Tax:
Hastert pressed for inclusion of an increased tax
deduction for donated computers (for Gateway Computers), and improved tax
treatment for charitable contributions for a narrow category of affluent
401(k) and IRA participants. We may press the Administration's charitable
tax provisions ($ 14 billion) in response.
Reconciliation:
No explicit conversation, but they discussed pension
reform which is the likely substance of such a bill. The President
told Hastert about our concerns, and pressed the idea of adding the
Administration's Retirement Savings Accounts. Hastert worried that this
was your savings plan. Hastert expects that Roth will insist on adding new
IRA provisions to an pension bill.
Prescription Drugs:
The Speaker appears resigned to nothing happening. Separately, it
looks as though Senate Democrats could
if they are permitted
obtain some Republican votes for something like the Administration Rx drug
bill. It is not clear the Senate Democrats will be able to pursue that
option.
Minimum Wage:
The President expressed great skepticism about the Fair Labor
Standards Act amendments proposed by the Speaker, especially those
effecting waitresses on tips. Hastert pressed for FLSA relief for funeral
directors and inside sales personnel. The President probably left Hastert
with the impression that we could live with a tax component of minimum
wage at a dollar amount of about $ 76 billion, although we would want
different items on the tax side. In addition, the President pressed to
include New Markets/Empowerment Zones in the minimum wage, but Hastert
seemed reluctant to commit to that strategy. Finally, they began a
conversation about Unemployment insurance reform as a part of this
package.
CARA/Lands Legacy:
The Speaker seemed only dimly aware of this issue.
Immigration:
Hastert pressed H 1 B, and H2 A (farm "guest workers"), and the
President pressed Latino Immigration fairness. The President also raised
Liberian immigration for Sen. Reid.
Appropriations:
The two parties vaguely agreed to have their respective staffs
talk about these issues.
Patients Bill of Rights:
Hastert pressed to put a cap on non-economic damages, but the
President resisted. They discussed one other pending dispute about this
bill (relating to the amount of federal court jurisdiction). Finally, it
is clear that Hastert would like to pass a bill, but can not figure out
how to deal with the Senate. Senator Nickles is very opposed to any
reasonable compromise.
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: David Gardiner ( CN=David Gardiner/OU=WHCCTF/O=EOP [ WHCCTF 1)
CREATION DATE/TIME:11-OCT-2000 16:18:20.00
SUBJECT: tax
TO: Roger S. Ballentine ( CN=Roger S. Ballentine/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
TO: Debra Reed ( CN=Debra Reed/OU=CEQ/O=EOP@EOP [ CEQ])
READ:UNKNOWN
TO: Janet Anderson ( CN=Janet Anderson/OU=WHCCTF/O=EOP@EOP [ WHCCTF 1)
READ:UNKNOWN
TEXT:
Rumors that House GOP is putting together a large tax package ($300
billion) that includes pension reform, minimum wage, new markets, some
things the the Administration would like (unclear what that is), and tryin
got get this done. Summers is further rumored to have discussed this with
Armey. Anyone know anything more on this?
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Fern Mechlowitz ( CN=Fern Mechlowitz/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:10-NOV-2000 16:21:01.00
SUBJECT: Podesta Letter on Pension Reform and IDAs
TO: David Tseng ( CN=David Tseng/OU=OPD/O=EOP@EOP [ OPD 1)
READ:UNKNOWN
TO: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP@EOP [ OPD ] )
READ:UNKNOWN
TO: Clifton G. Kellogg ( CN=Clifton G. Kellogg/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TEXT:
Podesta received a letter from the Credit Union National Association Inc
asking John to urge the President to:
pass pension reform legislation/ IRA-401K expansion.
pass a community renewal package that includes language to expand
Individual Development Accounts.
What is our position on each of these pieces of legislation? (Is there
any specific language that I should use in our response?) I would
appreciate any guidance you could provide.
Thanks! Fern
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP [ OPD 1)
CREATION DATE/TIME:13-NOV-2000 07:36:47.00
SUBJECT: Re: Podesta Letter on Pension Reform and IDAs
TO: Fern Mechlowitz ( CN=Fern Mechlowitz/OU=WHO/O=EOP@EOP [ WHO 1)
READ:UNKNOWN
CC: david tseng ( CN=david tseng/OU=opd/O=eop@eop [ OPD ] )
READ:UNKNOWN
CC: clifton g. kellogg ( CN=clifton g. kellogg/OU=opd/O=eop@eop [ OPD 1)
READ:UNKNOWN
TEXT:
we support pension reform generally but have a number of problems with the
version of the legislation that was passed by the house. Best to use
language from POTUS' two letters on the tax bill re pensions. Do you
need a copy? On including IDAs in community development legislation, we
are being very supportive but I am not sure if we are on the record.
Cliff -- Have we any language we've cleared on that?
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Clifton G. Kellogg ( CN=Clifton G. Kellogg/OU=OPD/O=EOP [ OPD ])
CREATION DATE/TIME:13-NOV-2000 10:43:12.00
SUBJECT: Re: Podesta Letter on Pension Reform and IDAs
TO: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
CC: fern mechlowitz ( CN=fern mechlowitz/OU=who/O=eop@eop [ WHO )
READ:UNKNOWN
CC: david tseng ( CN=david tseng/OU=opd/O=eop@eop [ OPD )
READ:UNKNOWN
CC: clifton g. kellogg ( CN=clifton g. kellogg/OU=opd/O=eop@eop [ OPD ])
READ:UNKNOWN
TEXT:
We have not cleared any language in support of IDAs, though the Admin has,
of course, supported similar proposals in our budgets (RSAs, USAs, HHS's
IDA demonstration program).
Gene expressed strong support for IDAs in a meeting with Sen. Landrieu and
with numerous Democratic staffers in early October, subject to Treasury's
technical corrections. In the following weeks, Treasury worked with staff
from Santorum and Lieberman's offices to reach acceptable IDA language.
The groups know that Treasury and Santorum/Lieberman reached agreement on
the technical language.
However, as far as I know, we have resisted Hill calls to go on record for
this particular IDA bill b/c in the context of the Clinton-Hastert New
Markets bill, we preferred to honor that agreement (which did not include
IDAs), rather than open it up to more add-ons.
I believe any langage in support of the IDA bill would need to be cleared
with Treasury, NEC, OMB and others up the chain.
Sarah Rosen Wartell
11/13/2000 07:36:38 AM
Record Type: Record
To: Fern Mechlowitz/WHO/EOP@EOP
cc: david tseng/opd/eop@eop, clifton g. kellogg/opd/eop@eop
Subject:
Re: Podesta Letter on Pension Reform and IDAs
we support pension reform generally but have a number of problems with the
version of the legislation that was passed by the house. Best to use
language from POTUS' two letters on the tax bill re pensions. Do you
need a copy? On including IDAs in community development legislation, we
are being very supportive but I am not sure if we are on the record.
Cliff -- Have we any language we've cleared on that?
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Fern Mechlowitz ( CN=Fern Mechlowitz/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:17-NOV-2000 11:54:06.00
SUBJECT: Re: Podesta Letter on Pension Reform and IDAs
TO: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TEXT:
Hi Sarah,
I thought that I had a copy of these tax letters (with the pension reform
language) on file, but I was mistaken. Would you mind sending me a copy
(fax- 61907)? Thanks!
Sarah Rosen Wartell
11/13/2000 07:36:38 AM
Record Type: Record
To:
Fern Mechlowitz/WHO/EOP@EOP
cc:
david tseng/opd/eop@eop, clifton g. kellogg/opd/eop@eop
Subject:
Re: Podesta Letter on Pension Reform and IDAs
we support pension reform generally but have a number of problems with the
version of the legislation that was passed by the house. Best to use
language from POTUS' two letters on the tax bill re pensions. Do you
need a copy? On including IDAs in community development legislation, we
are being very supportive but I am not sure if we are on the record.
Cliff -- Have we any language we've cleared on that?
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Fern Mechlowitz ( CN=Fern Mechlowitz/OU=WHO/O=EOP [ WHO ])
CREATION DATE/TIME:20-NOV-2000 11:24:49.00
SUBJECT: Podesta Credit Union Ltr
TO: Clifton G. Kellogg ( CN=Clifton G. Kellogg/OU=OPD/O=EOP@EOP [ OPD ])
READ:UNKNOWN
TO: Sarah Rosen Wartell ( CN=Sarah Rosen Wartell/OU=OPD/O=EOP@EOP [ OPD 1)
READ:UNKNOWN
TEXT:
Would you mind looking over this letter to make sure the language looks
OK? Sarah-- I used the language from those 2 POTUS letters that you gave
me. Cliff-- I used the general language that you suggested. Thanks!
Mr. Daniel A. Mica
President & CEO
Credit Union National Association, Inc.
805 15th Street, NW
Washington, DC 20005-2207
Dear Mr. Mica:
Thank you for your letter. The Administration supports both pension
reform and legislation that would expand individual development accounts
(IDAs).
The President is prepared to support the pension legislation that was
adopted by the House and Senate, provided that certain modifications that
the Treasury Department has discussed with the tax-writing committees are
made. These modifications will ensure that employer-provided pensions for
workers are not harmed, will provide meaningful protections for workers
affected by cash balance conversions, and will provide progressive savings
incentives for low- and moderate-income workers.
In regard to the Administration,s support of IDA expansion, the President
included $25 million in his fiscal year 2001 Budget for an IDA
demonstration program, which represents the fully authorized level. In
addition to supporting full funding for this program, we continue to
support IDAs funded through tax incentives, such as the Administration,s
proposals for Universal Savings Accounts and Retirement Savings Accounts.
Thank you again for writing. I appreciate knowing your views as we enter
final budget negotiations with Congress.
Sincerely,
John Podesta
Chief of Staff to the
President
RECORD TYPE: PRESIDENTIAL (NOTES MAIL)
CREATOR: Gregory L. Dixon ( CN=Gregory L. Dixon/OU=ONDCP/O=EOP [ ONDCP ])
CREATION DATE/TIME: 9-JAN-2001 14:17:04.00
SUBJECT: Friends in High Places
TO: [email protected] ( [email protected] [ UNKNOWN ] )
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ] )
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ])
READ:UNKNOWN
TO: [email protected] ([email protected] [ UNKNOWN ])
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN 1)
READ:UNKNOWN
TO: [email protected] ( [email protected] [ WHO ])
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN 1)
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN 1)
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ])
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ] )
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ])
READ:UNKNOWN
TO: [email protected] ( [email protected] [ UNKNOWN ])
READ:UNKNOWN
TEXT:
Thought you might be interested in this news item. Ohio rules! - Greg
Dixon
Jan. 5, 2001 - Speaker Denny Hastert announced today that Rep. Rob
Portman has been appointed to be Chairman of the
House GOP Leadership. Hastert said, "As we prepare for the 107th
Congress, I have decided to appoint Rob Portman to be
the Chairman of the Republican Leadership. In this role, Rob will chair
the leadership meetings; act as a liaison with the Bush
administration, and serve as an additional set of eyes and ears for the
Republican leadership."
Hastert added, "When it comes to legislating, Rob Portman is one of our
most capable members. He is a conservative who
has the proven ability to work with Democrats to get things done for the
country. He worked on a bipartisan basis to pass
pension reform so that the American people can save more money for their
retirements tax-free, to pass tax reform so that the
IRS has less power and the people have more power, and to pass drug
prevention measures to keep our kids from taking illegal
drugs."
Hastert also noted Portman's connections to the Bush family, saying, "He
also has Executive branch experience. He worked
as Director of the White House Office of Legislative Affairs for the last
President Bush. This experience will prove invaluable for
the 107th Congress."
Portman's appointment puts a third Ohioan in a key position in the 107th
Congress, with Reps. John Boehner and Mike Oxley
jumping over senior colleagues to win committee chairmanships. Portman
also fills a chair that had been used to elevate former
Rep. Bill Paxon during the Gingrich speakership. Paxon, who became a
victim of the attempted coup against Gingrich, was
considered a young leader in the GOP ranks, and today Hastert used similar
words to describe Portman, calling him "a rising star
in the Congress and in the Republican Party."