Federal Update

Mandatory Collective Bargaining Bill Still on Senate's Agenda

Senate supporters of mandatory collective bargaining legislation remain committed to bringing the bill, S. 2123, the Public Safety Employer-Employee Cooperation Act, up for a vote in the near future. This bill would force states, counties, cities and towns to enter into collective bargaining with their public safety officers regardless of state and local laws. As soon as we learn more about Senate plans to take action on the legislation, we'll let you know, so you can join us in urging your Senators to oppose the legislation. (Note: Lauderhill's public safety officers are already unionized)

Senate Majority Leader Reid Pushes Bill to Address Housing Crisis

On February 28, Senate Majority Leader Harry Reid (D-NV) failed to get the votes needed to advance legislation that would address the housing crisis, a top NLC legislative priority. The Foreclosure Prevention Act of 2008, S. 2636, would (1) help families avoid foreclosure, (2) help communities hardest hit by foreclosure, and (3) help homebuyers avoid risky mortgages that could result in foreclosure in the future.

To help families keep their homes, the bill would increase funds to support pre-foreclosure counseling by $200 million, would allow State Housing Finance Agencies to issue bonds to refinance subprime loans, and would allow bankruptcy judges to modify mortgage terms on principal residences. To help communities, the bill would distribute an addition $4 billion in Community Development Block Grant (CDBG) funds to localities hardest hit by foreclosure for the purpose of purchasing foreclosed properties to rehabilitate, rent, or resell on the market. To help homebuyers, the bill simplifies and strengthens loan disclosure requirements under the Truth In Lending Act.

The lending industry and the Administration oppose the legislation. The Administration issued a veto threat over the bankruptcy provision, stating that "amending the bankruptcy code in this manner would undermine existing contracts, leading to contraction in mortgage credit availability and affordability." The White House also opposes the increase in CDBG funding. According to Senate staff, negotiations are ongoing, and the bill could be reconsidered as early as next week.

Senate Committee Urges Congress to Restore Byrne JAG Funds

In the continuing effort to restore funding to the Byrne Justice Assistance Grant Program (Byrne JAG), an NLC legislative priority, the Senate Judiciary Committee's Subcommittee on Crime and Drugs, chaired by Sen. Joe Biden (D-DE), held a hearing this week and called for the restoration of funding for this program through an amendment to any supplemental appropriations this year. Byrne JAG funds are used to support a wide array of public safety programs, ranging from after school programs for at-risk youth to multi-jurisdictional drug task forces. In FY 2007, the program was funded at $520 million; for FY 2008, Congress appropriated only $170.4 million for the program.

House Approves Renewable Energy Tax Package

On Wednesday, February 27, the House passed the Renewable Energy and Energy Conservation Tax Act of 2008 (H.R. 5351) by a vote of 236-182. The bill would provide tax incentives for the production of renewable energy and energy conservation. The roughly $18 billion plan to extend and create new alternative energy tax breaks and to offset the costs by repealing tax incentives for major oil companies is similar to measures the House approved last year as part of the comprehensive energy reform bill. Last year the Senate failed to obtain the necessary 60 votes to end debate on the provisions, and they were subsequently removed from the energy bill that was signed by President Bush in December 2007. The Senate may reconsider the renewable energy tax measures this session as part of its budget process. The White House has threatened to veto the House passed bill.