House Budget Committee Chairman Paul Ryan this week came up with a budget proposal that would give the very wealthy and big businesses trillions of dollars in tax cuts and subsidies but slash funding for programs that benefit the poor, the disabled, children, and the middle class. Ryan’s Path to Prosperity (for his campaign donors) would reduce revenues by $4.6 trillion through a series of tax cuts, including reducing the corporate rate from 35 percent to 25 percent and exempting corporations’ foreign profits from U.S. tax. That’s on top of the $5.4 trillion in revenue lost from making the Bush tax cuts permanent. As Ryan wants to give away free money to the super rich and increase defense spending by $228 billion over the next 10 years, he chooses to pay for it by cutting services and programs most Americans rely on. Under his plan, non-defense federal spending would be reduced to less than 4 percent of the gross domestic production, down from 12.5 percent in 2011. Most of the federal government except Social Security, health care, and defense would disappear by 2050, according to new analysis by the Center on Budget and Policy Priorities.
“That includes everything from veterans’ programs to medical and scientific research, highways, education, nearly all programs for low-income families and individuals other than Medicaid, national parks, border patrols, protection of food safety and the water supply, law enforcement and the like,” the CBPP said.
Take transportation cuts, for example. Ryan’s spending on transportation would be 26.1 percent lower in 2014 than it is today. If that cut was applied to air-traffic control programs, Third Way estimates that there would be 3,092 more flight cancellations and 68,683 delays a year. That would strand 151,503 more people at the gate and make 3.3 million more people late every year. Ryan’s plan would allocate $78 billion a year for infrastructure repairs and upgrades, a lot less than the $200-262 billion suggested by think thanks that have analyzed the nation’s crumbling infrastructure. According to the Government Accountability Office, one in four bridges in the U.S. is “either structurally deficient and in need of repair, or functionally obsolete and is not adequate for today's traffic.”
Ryan’s budget also targets the country’s most vulnerable – the poor and disabled. His plan would repeal the Affordable Health Care Act, which – when the law goes into full effect in 2014 – helps 32 million Americans afford health care who do not get it today. If the law is repealed, insurers can once again deny coverage to 17 million children with pre-existing conditions who are now insured because of the law. That’s not all the damage Ryan’s plan would do. By 2050, his budget would cut 75 percent of spending from current levels on Medicaid, the Children’s Health Insurance Program and subsidies for private insurance. This would directly affect the disabled and elderly who need help paying for nursing home care, for example. His plan would also turn over Medicaid to states, causing tens of millions of people to lose coverage. A similar proposal Ryan came up with last year would worsen the problem of the uninsured and lead states to drop 14-27 million people, according an estimate by the Urban Institute. Besides ending Medicaid as we know it, Ryan, just like last year, wants to turn Medicare into a voucher program that would eventually result in seniors paying as much as two thirds of their medical costs out of their own pockets.
And for federal employees – while their agencies are still in operation – the Ryan budget proposes an unprecedented $368 billion in federal workforce cuts, including extending the current pay freeze for three more years, cutting federal pensions by $78 billion, and eliminating 10 percent of the federal workforce from agencies like the Social Security Administration and Environmental Protection Agency by 2015.
The House Budget Committee this week voted to advance Ryan’s budget with two right-wing lawmakers voting against it because it doesn’t cause enough damage. Ryan’s plan will now go before the full House for a vote.
AFGE Secures Over 100 Signatures for Panetta Letter: As of March 20, AFGE leaders and activists have garnered support from 114 House lawmakers to sign on to a letter that will be sent to Defense Secretary Leon Panetta asking him to lift the ill-conceived cap on the civilian workforce that forces managers to cut tens of thousands of federal jobs. The letter, sponsored by Rep. Maurice Hinchey from New York, points out how DoD’s so-called “Efficiency Initiative” caps the number of civilian employees at the 2010 levels and incentivizes managers to use contractors instead of civilian employees, even though privatization is more expensive or violates the law. The letter asks Panetta to manage the workforces – military, civilian, and contractors – from the total force perspective so sourcing decisions are based on the law, cost, policy and risk instead of arbitrary constraints. The letter also asks DoD to comply with the law that would reduce spending on service contracts to FY10 levels, thus making it much more difficult to substitute contractors for federal employees. The Senate version of the letter will be circulated.
AFGE Praises Office of Special Counsel for Protecting Whistleblowers: AFGE applauded the recent actions by the U.S. Office of Special Counsel (OSC) in its investigation that uncovered retaliation against whistleblowers at the Department of the Air Force facilities in Dover, Del. Four employees, including AFGE members, alerted management officials to the “improper handling, processing and transport of human remains of deceased personnel and military dependents” and were retaliated against for doing so. OSC recommended disciplinary action be taken against the supervisors responsible for violations of the law that protect federal employees who engage in whistleblowing or other protected activities.
“The courage, dedication and resolve of federal employees are remarkable. Even in the face of reprisal and retaliation by management officials, our civil servants did what was necessary to shed light on acts of misconduct occurring at their facility,” said AFGE President John Gage.
“OSC has come a long way since the days of Scott Bloch,” said AFGE Assistant General Counsel of Legislation J. Ward Morrow. “Under the leadership of Special Counsel Carolyn Lerner, the agency has made it a priority to protect the rights of whistleblowers. It’s important that we expand whistleblower protections in the federal sector to ensure that employees at any agency know they will be protected when revealing unjust and unlawful acts.”
Bill Introduced to Cap Contractor Compensation at $400,000: A bipartisan group of senators have introduced legislation that would sharply lower the compensation that all federal contractors can charge taxpayers. The Commonsense Contractor Compensation Act, S. 2198, would cap the reimbursement rate at the president’s salary, currently $400,000, and apply it to all contractor employees. Lowering the cap would not limit how much these contractor employees can earn, only how much of their compensation can be charged to the taxpayers. AFGE for years has been calling attention to runaway contractor payments. Government contractors in non-DoD agencies currently can charge taxpayers $693,951 a year for each of their five most highly paid executives, a benchmark that has more than doubled during the past 12 years. Other contractor employees are not subject to the cap and can earn far larger salaries that are subsidized by taxpayers. In DoD, all contractor employees are held to the current ceiling of almost $700,000. OMB is reportedly poised to raise the benchmark to $750,000.
“Current federal employees have had their own salaries frozen for two years and new employees will have to pay four times as much in retirement contributions, saving the government $75 billion. Yet nothing is being done to trim out-of-control contractor spending,” AFGE President John Gage said. “Taxpayers should not be on the hook for these outrageous salaries that no one in government earns – not federal employees, not members of Congress and not even the President of the United States.”
The bill was introduced by Sens. Barbara Boxer of California and Charles Grassley of Iowa. A similar bill introduced in the House by Rep. Paul Tonko of New York would lower the cap to $200,000 and apply it to all contractors.
McCaskill Declares She Will Not Support BRAC: Sen. Claire McCaskill, chairman of the Senate Armed Services Readiness and Management Support subcommiteee, announced Wednesday that she will not allow another round of base realignment and closure commission (BRAC) proposed by the administration. “I will not support the request for a BRAC process to be carried out in 2013,” McCaskill said during a hearing before her subcommittee on the plan. “The impact BRAC has on our communities around the country, such as those surrounding my home state bases Fort Leonard Wood and Whiteman Air Force Base, is extraordinary. I will not support a process that is callous or casual, or one that is rushed before we fully comprehend whether the traumatic task is clearly in the best interests of the American taxpayer and our national security.”
AFGE Participates in Selma March Anniversary: Forty-seven years after the 1965 Selma March that fought for voting rights and equality, civil rights leaders, labor activists and minorities re-convened to participate in the anniversary of the historic march. Led by Reverend Al Sharpton, thousands of activists including AFGE leaders
marched to rally against new voting laws passed in several states and anti-immigration laws passed in Alabama. AFGE National Secretary Treasurer J. David Cox, National Vice President for District 5 Everette Kelley and National Vice President for District 12 Eugene Hudson were just a few AFGE representatives who participated in the historic march. Voter protection continues to be at risk and AFGE is dedicated to preserving the rights of American voters. Different states have different laws on what proper identification is needed at the polls. It varies from something simple as a signature verification to bringing in an utility bill. For information on what your state requires, up-to-date local news that may affect you, and polling locations visit www.electionprotection.com or call 1-800-OUR-VOTE (687-8683).
This Week in Labor History: On March 25, 1911, 146 workers were killed in a fire at New York’s Triangle Shirtwaist Factory, a disaster that would launch a national movement for safer working conditions.
So You Think You Can Dance? This two-year-old boy thinks he can.
Inside Government: Tune in now to AFGE’s "Inside Government" to learn about the union’s fight against privatization. The show, which originally aired on Friday, March 16, is now available on demand. AFGE Council of Prison Locals President Dale Deshotel and AFGE Transportation Security Administration Local 1120 Montana Vice President Eric Wood detailed the challenges privatization efforts present to federal workers. Deshotel also discussed funding and staffing issues at the Bureau of Prisons while Wood addressed the union’s work to negotiate a contract for Transportation Security Officers. But first, Food & Water Watch Senior Lobbyist Tony Corbo continued last week’s discussion about ongoing concerns with the USDA’s Food Safety and Inspection Service proposal to partially privatize poultry inspections. Lastly, AFGE Department of Defense Local 2142 President Joe Gonzales discussed his local’s efforts to improve workplace conditions and employee morale.
Listen LIVE on Fridays at 10 a.m. on 1500 AM WFED in the D.C. area or online at www.federalnewsradio.com.
| American Federation of Government Employees, AFL-CIO 80 F Street, N.W., Washington, D.C. 20001 | Tel. (202) 737-8700 | Fax (202) 639-6492 | www.afge.org |
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