Monday, January 25, 2010

Massachusetts Election Could Cloud 2010 Legislative Agenda

Scott Brown's election to the Senate could alter legislative plans for the remainder of 2010. In addition to putting the president’s plans for health care reform into doubt, Brown’s election could also cast doubts on additional stimulus funding and funding for housing and community development programs.

Rising deficits, the high costs associated with the president’s health care bill, uncertainty about the benefits of the president’s stimulus package and concern for their economic future drove voters to elect an outsider, and a Republican) in a reliably Democratic state.

Without a filibuster-proof majority, Democrats must be more careful with how they proceed on legislative initiatives particularly on items with large price tags. Media reports are suggesting the president will use his State of the Nation address to modify some of his initiatives and may even call for cuts to programs.

The president’s speech is going to focus heavily on jobs with, according to press reports, these five initiatives as the centerpiece of his presentation with an eye towards middle class voters:

1. Expansion of the child tax credit -- doubling it among families with incomes up to $85,000;

2. Increasing funding for child care;

3. Broader support for families supporting elderly relatives, including counseling, training and temporary respite care;

4. Limiting student loan payments to no more than 10% of their income; and,

5. Establishing an automatic employer-based individual retirement account plan, so that workers can establish an IRA through their workplace.

There are also late news reports Obama will ask for a partial three-year spending freeze. For providers of housing and community development programs and their constituents, there is cause for concern. In spite of successful utilization of the stimulus dollars, housing programs could be victims of future cost-cutting measures. In a recent editorial in The Advocate, the bi-weekly publication of the Public Housing Authorities Directors Association (PHADA), P. Curtis Hiebert, Director of the Keene (NH) Housing Authority, raised concern about the impact voter concerns about rising deficits could have on housing programs.

“All this raises concerns,” he said, “given that our capital needs and voucher programs are no adequately funded even under the current year’s good budget.”

This occurs shortly after the House narrowly passed another “jobs stimulus” bill in December. The bill does not offer much in terms of “new” money to create jobs but does provide an increase in funding for unemployment benefits, COBRA health insurance, and Medicaid spending. The prospect of passing another stimulus bill in the Senate is unlikely given the current political dynamics.

The Brown election has emboldened Republicans to play hard ball as they envision an opportunity to increase their standing in Congress. Most analysts don’t expect Republicans to regain control of either chamber but do expect them to increase their numbers. The landscape does not look good for Democrats. Vice President Joe Biden’s son, Beau Biden, has decided not the run for the Senate seat in Delaware. This creates a tremendous opportunity for Rep. Mike Castle (R-DE) to win that seat. (Republicans are also targeting the president’s former Senate seat in Illinois believing they can capture it as well.) For housing advocates, Castle has long been considered a supporter of affordable housing in Delaware; however, Tea Party activists in the Republican Party are aggressively supporting conservative Republican candidates seeking to reign in Federal spending. If they are successful, it can further erode funding support for housing programs.

Stuart Rothenberg, a highly respected political analyst in Washington, DC, is predicting there are 28 House races which are shifting the Republicans way giving them some traction at this early stage of the election cycle. In total, Rothenberg believes there are 72 seats in the House in play. The results of those elections could have a dramatic impact on support for housing programs.

The following list was posted on Rothenberg’s blog January 25. The asterisk indicates the trends shifting towards Republicans. Viewfromdc added the percentages in the brackets. That number reflects the percentage of votes taken by the congressman on housing and community development legislation which were consistent with the positions taken by the National Association of Housing and Redevelopment Officials (NAHRO) in 2009. While NAHRO’s positions are not shared by all housing advocates, their congressional voting record on Members of Congress provides a window into the current support for affordable housing.

Of the 28 listed with asterisks as currently leaning Republican, 17 had scores of 100 percent; three at 83 percent; one each at 80, 67 and 60 percent; three at 50 percent; and, two at zero. Of the 72 listed below, 50 have scores of 100 percent.

Pure Toss-Up (1 R, 9 D)

• AR 1 (Open; Berry, D) * (83%)
• AR 2 (Open; Snyder, D) * (100%)
• CO 4 (Markey, D) (100%)
• IL 10 (Open; Kirk, R) (17%)
• MI 7 (Schauer, D) * (100%)
• NH 1 (Shea-Porter, D) (100%)
• NH 2 (Open; Hodes, D) (100%)
• PA 7 (Open; Sestak, D) (100%)
• TN 8 (Open; Tanner, D) (83%)
• WA 3 (Open; Baird, D) (100%)

Toss-Up/Tilt Republican (0 R, 10 D)

• AL 2 (Bright, D) * (50%)
• FL 8 (Grayson, D) * (100%)
• ID 1 (Minnick, D) * (0%)
• KS 3 (Open; Moore, D) (100%)
• MD 1 (Kratovil, D) * (0%)
• MS 1 (Childers, D) * (80%)
• NM 2 (Teague, D) (100%)
• OH 1 (Driehaus, D) * (50%)
• OH 15 (Kilroy, D) * (100%)
• VA 5 (Perriello, D) (100%)

Lean Republican (3 R, 2 D)

• CA 3 (Lungren, R) (33%)
• LA 3 (Open; Melancon, D) * (100%)
• PA 6 (Gerlach, R) * (67%)
• TN 6 (Open; Gordon, D) (100%)
• WA 8 (Reichert, R) * (60%)

Republican Favored (8 R, 0 D)

• CA 44 (Calvert, R) (33%)
• CA 45 (Bono Mack, R) (67%)
• MN 3 (Paulsen, R) (0%)
• MN 6 (Bachmann, R) (17%)
• NE 2 (Terry, R) (33%)
• OH 2 (Schmidt, R) (17%)
• OH 12 (Tiberi, R) (33%)
• PA 15 (Dent, R) (67%)

Toss-Up/Tilt Democratic (0 R, 3 D)

• FL 24 (Kosmas, D) (100%)
• IL 14 (Foster, D) (100%)
• VA 2 (Nye, D) * (50%)

Lean Democratic (0 R, 11 D)

• HI 1 (Open; Abercrombie, D) Special Election (100%)
• IN 9 (Hill, D) * (83%)
• MO 4 (Skelton, D) (100%)
• NV 3 (Titus, D) (100%)
• NY 1 (Bishop, D) * (100%)
• NY 19 (Hall, D) (100%)
• NY 23 (Owens, D) (83%)
• NY 24 (Arcuri, D) (100%)
• NY 29 (Massa, D) (100%)
• SC 5 (Spratt, D) * (100%)
• WV 1 (Mollohan, D) * (100%)

Democrat Favored (2 R, 23 D)

• AZ 5 (Mitchell, D) (83%)
• AZ 8 (Giffords, D) * (83%)
• CO 3 (Salazar, D) * (100%)
• CA 11 (McNerney, D) * (100%)
• CA 47 (Sanchez, D) (100%)
• DE A-L (Open; Castle, R) (83%)
• GA 8 (Marshall, D) (83%)
• IA 3 (Boswell, D) (100%)
• LA 2 (Cao, R) (50%)
• NY 13 (McMahon, D) * (100%)
• NY 20 (Murphy, D) (N/A)
• NC 8 (Kissell, D) (100%)
• ND A-L (Pomeroy, D) * (100%)
• NJ 3 (Adler, D) * (100%)
• OH 16 (Boccieri, D) (100%)
• OH 18 (Space, D) (100%)
• PA 4 (Altmire, D) * (100%)
• PA 8 (Murphy, D) * (100%)
• PA 10 (Carney, D) (100%)
• PA 11 (Kanjorski, D) (83%)
• PA 17 (Holden, D) * (100%)
• SD A-L (Herseth Sandlin, D) (83%)
• TX 17 (Edwards, D) (100%)
• VA 9 (Boucher, D) * (100%)
• WI 8 (Kagen, D) (100%)

The time between now and the November election is an eternity but it is important for housing supporters to monitor these developments closely.

Mayors Present President with Plan to Address Unemployment

The United States Conference of Mayors (USCM) met with President Obama and continued to express their concern about the loss jobs in their communities. The meeting with the president kicked off the organization’s annual winter meeting which was held January 20-22 in Washington, DC.

More than 230 mayors gathered to advocate for their 2010 Metro Agenda for America. The agenda focuses on five areas the mayors feel are keys to revitalizing their communities:

Jobs

In meeting with the president and his cabinet, the mayors contend additional resources are needed to stem the rise in unemployment in their communities. Their report points out unemployment remains in double-digits in many communities with the highest concentration of unemployment in large metropolitan statistical areas. The report contends that the stimulus funds have not gone directly to cities. In order to boost unemployment, the mayors outline nine steps to increase employment opportunities:

1. Target new funds directly to cities with the highest unemployment rates or revenue shortfalls. The mayors contend states (which received the majority of stimulus funding for distribution) are slow to spend funds and fail to fund areas with the greatest needs.

2. Increase funding for the Energy Efficiency and Conservation Block Grant (EECBG) to provide “green” jobs.

3. Increase funding for the Community Development Block Grant (CDBG) program.

4. Increase funding for the Community Oriented Policing Services by $1 billion.

5. Provide an additional $1.2 billion for summer youth jobs.

6. Provide additional funding for the Transportation Investment Generating Economic Recovery (TIGER) Grants with the Department of Treasury.

7. Increase funding to modernize school.

8. Increase resources to the Small Business Administration (SBA) to make credit available to small businesses.

9. Use Troubled Asset Relief Program (TARP) funds to provide job-creating municipal bonds for infrastructure projects.

Surface Transportation

The mayors are calling for a reauthorization of legislation to fund infrastructure in cities with a call for more funds to go directly to cities and by-pass states.

Energy Efficiency and Conservation Block Grant (EECBG)

The mayors are calling for long-term funding for the Energy Efficiency and Conservation Block Grant program. The mayors do not call for a dollar amount but state that funding should come from regular appropriations and new energy and climate legislation.

Airport Security

The mayors are calling for state-of-the-art technology for detecting weapons and explosives at commercial airports.

Federal Investments

The mayors are calling for support of a number of programs which benefit local communities including CDBG, the Home Affordable Housing Program, public housing programs, Section 8 funding and the Low-Income Home Energy Assistance Program.

Interesting Read

The Stimulus Project: CNN Looks at the CNN Project


Phoenix mayor: The stimulus is working
By Phil Gordon
Special to CNN

Economy flounders, despite the stimulus

By Ron Paul
Special to CNN

Anti-Incumbent Election? Don’t Hold Your Breath
By Stuart Rothenberg
Congressional Quarterly

Nonprofit helps small businesses form
Economy offers opportunity

By Ted Griggs
Advocate business writer

Stakes are high as government plans exit from mortgage markets

By David Cho, Neil Irwin and Dina ElBoghdady
The Washington Post


 
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