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COMMITTEE NEWS
NCSL Labor & Economic Development Committee Members Meet with Congressman Charles B. Rangel (D-NY)
On Thursday, October 4th, North Carolina Representative Phillip Frye,
chairman of the NCSL Labor & Economic Development Committee, and several
other Committee Officers met with Congressman Rangel and his chief of staff
to discuss NCSL's trade interests, including the Trade Adjustment Assistance
program (TAA).
State Divestment Legislation Updated Online
Growing concern over genocide in Sudan and countries that sponsor terrorism has prompted state legislatures to consider actions to limit or eliminate state investments in firms doing business with such countries. Legislation includes total divestment of the states interests in firms doing business in targeted divestment focused on specific firms and shareholder engagement strategies. NCSL continues to track the issue of divestment as legislatures across the nation consider taking legislative action. For more information, visist the the State Divestment Legislation page on the NCSL Labor and Economic Development Committee website at: http://www.ncsl.org/standcomm/sclaborecon/statedivestbills.htm
IN THE NEWS
Department of Labor Salutes Veterans
WASHINGTON, November 7 - Secretary of Labor Elaine L. Chao hosted the Department of Labor’s annual “Salute to Veterans” program, which highlights the many DOL programs that assist veterans and military personnel. Secretary Chao also took this opportunity to applaud the military veterans who are now employees of the Department of Labor for their dedicated service to our nation.
Employment Report Shows Gain of 166,000 Jobs
November 2, 2007
By Michael M. Grynbaum
New York Times
A robust employment report offered investors a pleasant surprise, but an uncertain climate kept stock markets down most of the day.
The economy added 166,000 jobs in October, the fastest pace in five months, the Labor Department said this morning. Payrolls grew more than twice what analysts had predicted, led by a sharp increase in the service sector.
Statement of U.S. Labor Secretary Elaine L. Chao on October Employment Numbers
WASHINGTON — U.S. Secretary of Labor Elaine L. Chao issued the following statement on the October employment situation report released today:
"The creation of 166,000 net new jobs in October — twice the market expectations — combined with strong third quarter growth of 3.9 percent shows just how resilient and diverse our economy is. We've now seen 50 straight months of job creation and challenges in housing-related sectors are being offset by growth in other areas of the economy."
Doha Negotiations and Three Remaining Free Trade Agreements Likely to Push into ‘08, Peru FTA Still On Track
Latest predictions in Geneva say that the ongoing stalemate in the negotiations on non-agricultural market access (NAMA) makes it less and less likely that members of the World Trade Organization will achieve a breakthrough in the Doha Round trade talks by the end of the year. The pessimism derives primarily from the entrenched differences between developed and developing countries over tariff cuts on industrial goods, but differences in the agriculture negotiations on tariff and subsidy cuts are also contributing to the gloom. Although WTO Director-General Pascal Lamy has warned against pushing the Doha negotiations into 2008, the growing consensus is that continuing the talks on agriculture and NAMA into the first quarter of the year is now inevitable.
On Capitol Hill, the U.S. House approved the U.S.-Peru FTA Nov. 8 by a 285-132 vote, with 109 Democrats voting in favor of the deal; the Senate is expected to consider the agreement before the end of the year. However, House Majority Leader Steny Hoyer (D-Md.) said Nov. 9 that of the three FTAs currently pending, only the Panama FTA could still possibly reach the floor this year. If political concerns about the head of the Panamanian National Assembly—wanted in the U.S. for the killing of an American soldier—were resolved, then Panama “might be possible,” Hoyer said. USTR Susan Schwab reiterated Nov. 8 the administration's position that the Colombia FTA should be the next one considered by Congress, but House leaders say that there are not enough votes to take up the agreement, given Colombia’s poor record on protecting labor union members.
Ex-Chief of S.E.C. Says Pension Funds in Danger
October 31, 2007
By Mary Williams Walsh
New York Times
As New York State comptroller, his father “saved the retirements” of countless workers, Arthur Levitt Jr. said in a speech yesterday — but he added that now those pensions, along with those of millions of other Americans, are again at risk.
In remarks to pension officials from New York and several other states, Mr. Levitt, the longest-serving chairman of the Securities and Exchange Commission, said their world was fraught with problems, including conflicts of interest, opaque accounting and a tendency among elected officials to promise valuable benefits, then fail to set aside enough money to pay for them.
U.S. House Committee on Ways & Means Passes the Trade and Globalization Assistance Act of 2007
On October 24th, the U.S. House Committee on Ways & Means took up a bill introduced by Chairman Charlie Rangel to extend and change the Trade Adjustment Assistance (TAA) program and Unemployment Insurance (H.R. 3920, the Trade and
Globalization Act of 2007). The Chairman's bill as introduced on Monday night as well as his substitute as introduced on Tuesday and Ways & Means staff-prepared summaries are available on the Committee web page at: http://waysandmeans.house.gov/legis.asp?formmode=item&number=595.
North Carolina Representative Phillip Frye, Chair of NCSL's Labor & Economic Development Committee, wrote yesterday to Chairman Rangel expressing appreciation for certain pieces of the bill and concerns about other elements. That letter and links to relevant NCSL policies are available at
http://www.ncsl.org/standcomm/sclaborecon/TAAUIltr102307.htm.
All amendments except the Chairman's substitute failed on party-line votes.
Several purported to increase state flexibility; examples include one introduced by Congressman Johnson of Texas striking provisions requiring TAA be administered by state merit staff and another offered by Congressman Weller of Illinois providing states a waiver option for wage insurance program innovations. The Chairman was receptive to several ideas offered by Congressman Reynolds or found in the Republican substitute and expressed adesire to work with Members on those items. H.R. 3920, as amended, now the "Trade and Globalization Assistance Act of 2007," was favorably reported out of Committee for floor consideration by a vote of 25 to 14.
Senate Banking Committee Approves Sudan Accountability and Divestment Act of 2007
On October 17th, the Senate Banking Committee unanimously approved
legislation that if enacted would authorize and set standards for state and local
governments to divest from companies doing business in Sudan. The Sudan Accountability and Divestment Act of 2007, approved by 21-0, would also require federal contractors to certify that they are not involved in key sectors of Sudan's economy, although under the bill the President would be authorized to waive the requirement if it was in the national interest to do so.
To view the Committee bill and summary draft, please go to:
http://banking.senate.gov/docs/2007/101707/sudan_bill.pdf
RECENT REPORTS
Pensions and Retirement Plan Enactments in 2007 State Legislatures
October 2007 by Ronald K. Snell
Introduction
This report summarizes selected pensions and retirement legislation that state legislatures enacted in 2007, some 2006 legislation not reported last year, and a few items of particular interest that failed to pass or were vetoed. Bills summarized below have been enacted into law unless there is a specific indication to the contrary. Not all legislation had been chaptered at the time this report was compiled. Some legislatures remain in session at the time of publication, October 2007.
The sources of this report are StateNet searches of current and enacted legislation, retirement systems' websites, state legislatures' reports of enacted legislation, and information provided by legislative and retirement system staff. I am indebted to the many legislative staff who write and share summaries of their Legislatures' acts, the many retirement system staff throughout the United States who have posted legislative summaries on their web sites, and the staff of Legislatures and retirement systems who have taken time to identify and explain legislation and its context to me.
The goal of this report is to help researchers and policy makers know how other states have addressed issues that could arise in any state. In keeping with that goal, I have excluded most clean-up legislation, cost-of-living adjustments, administrative procedures and technical amendments. This report is organized according to the topics that legislatures addressed in 2007, listed at the end of this introduction. The remainder of the introduction takes note of the main issues of 2007, which are described in more detail under the topical headings in the main part of this paper.
Trade Adjustment Assistance: States Have Fewer Training Funds Available than
Labor Estimates When Both Expenditures and Obligations Are Considered.
GAO-08-165, November 2
Manufacturing workers face an uncertain future as manufacturing employment declines—more than 3 million manufacturing jobs have been lost in this country since 2000 because of international trade as well as other factors. The Trade Adjustment Assistance (TAA) program, administered by the Department of Labor (Labor), is the nation’s primary program providing income support, job training, and other benefits for manufacturing workers who lose their jobs as a result of international trade. During the 3-year period from fiscal years 2004 through 2006, Labor certified nearly 4,700 petitions for TAA covering an estimated 400,000 workers. For fiscal year 2006, Congress appropriated about $966 million for TAA, of which about $220 million was for training trade-affected workers.
October 16, 2007 GAO Correspondence on Housing to House Committee on Financial Services
Information on Recent Default and Foreclosure Trends for Home Mortgages and
Associated Economic and Market Developments. GAO-08-78R, October 16
Substantial growth in the mortgage market in recent years has helped many Americans become homeowners. However, as of the latest quarterly data available, June 2007, more than 1 million mortgages were in default or foreclosure, an increase of 50 percent compared with June 2005.1 Defaults and foreclosures on home mortgages can impose significant costs on borrowers, lenders, mortgage investors, and neighborhoods. Additionally, recent increases in defaults and foreclosures have contributed to concern and increased volatility in certain U.S. and global financial markets. These developments have raised questions about the extent and causes of problems in the mortgage market.
State and Local Government Retiree Benefits: Current Status of Benefit Structures, Protections, and Fiscal Outlook for Funding Future Costs. GAO-07-1156, September 24, 2007
State and local retiree benefits are not subject, for the most part, to federal laws governing private sector retiree benefits. Nevertheless, there is a federal interest in ensuring that all Americans have a secure retirement, as reflected in the special tax treatment provided for both private and public pension funds. In 2004, new government accounting standards were issued, calling for the reporting of liabilities for future retiree health costs. As these standards are implemented and the extent of the related liabilities become known, questions have been raised about whether the public sector can continue to provide the current level of benefits to its retirees. GAO was asked to provide an overview of state and local government retiree benefits, including the following: (1) the types of benefits provided and how they are structured, (2) how retiree benefits are protected and managed, and (3) the fiscal outlook for retiree benefits and what governments are doing to ensure they can meet their future commitments. For this overview, GAO obtained data from various organizations, used our model that simulates the fiscal outlook for the state and local sector, and conducted site visits to three states that illustrate a range of benefit structures, protections, and fiscal outlooks. Cognizant agency officials provided technical comments which were incorporated as appropriate.
UPCOMING EVENTS
FALL FORUM
The NCSL Fall Forum will be held November 28-30 at the Arizona Biltmore Hotel in Phoenix, Arizona. Session topics include housing, rural and urban economic developement, GASB, incentive strategies and the discriminatory taxation of communications and the impact on economic development. An online version of the Labor and Economic Development Committee Agenda is available at www.ncsl.org/standcomm/sclaborecon/07LEDFallForumAgenda.htm. Other meeting highlights include the Honorable Mary Peters, Secretary, U.S. Department of Transportation who is scheduled to speak at the general session on Thrusday. Fall Forum registration and housing information is available online at www.ncsl.org/forum.
TRADE POLICY LEADERSHIP SEMINAR
The 2007 Trade Policy Leadership Seminar (TPLS), is scheduled as a pre-conference to NCSL's Fall Forum. This year's TPLS, November 27-28 in Phoenix, will be co-convened by NCSL, the National Governors Association (NGA), and the State International Development Organizations (SIDO). Potential topics include Chinese imports, NAFTA trucking and more! For more information visit www.ncsl.org/standcomm/sclaborecon/TPLS2007.htm.
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2007-2008 Officers
Chair
Representative Phillip Frye
North Carolina
Vice Chairs
Senator Rosa Franklin
Washington
Senator Bill Heath
Georgia
Senator Gary LeBeau
Connecticut
Representative Julie Fisher
Utah
Representative James Johnson
Delaware
Representative Brent Yonts
Kentucky
Immediate Past Chair
Representative Steve Conway
Washington
Staff Chair
Gilbert Loredo
Texas
Staff Vice Chairs
Jill Fike
Georgia
Jeanne Schmedlen
Pennsylvania
Andrea Wilko
Utah
Immediate Past Staff Chair
Nelson Fox
Ohio
Committee Staff
Diana Hinton Noel
Senior Policy Specialist
Labor and Economic Development Committee
NCSL - DC
202-624-7779
diana.hitnon@ncsl.org
Jeremy Meadows
Senior Policy Director
Trade and Transportation
NCSL - DC
202-624-8664
jeremy.meadows@ncsl.org
Jeanne Mejeur
Research Manager
Legislative Information Services Program
NCSL - Denver
303-364-7700
jeanne.mejeur@ncsl.org
Robert Strange
Legislative Analyst
State-Federal Relations
NCSL - DC
202-624-8698
robert.strange@ncsl.org
Offices
Headquarters
7700 East First Place
Denver, Colorado 80230
State-Federal Relations
444 North Capitol Street, NW Suite 515
Washington, DC 20001 |
