
After weeks of tumultuous negotiations, the White House's fiscal commission adjourned today without agreement on a controversial plan to reduce deficits by slashing spending and lowering income tax rates.
Recognizing that they'd fail to meet the 14-vote threshold for passage, the 18-member commission ultimately did not take a final vote. However, members announced their positions ahead of today's final meeting, and in the end a majority -- according to Sen. Kent Conrad (D-ND), 11 in total -- claimed to support the proposal.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Former SEIU President Andy Stern, who sits on President Obama's fiscal commission, says he will not endorse the panel's final recommendations if they are dominated by Republican ideas.
"There has to be a mix," Stern told me in an interview last night.
The bipartisan, 18 member panel has been tasked with providing policy guidance that will bring the country closer to fiscal balance. As TPM has reported, many of the Republican members are largely interested in securing spending cuts, and want to avoid tax increases of all kinds. Some are even pressing for lower tax rates for corporations, the cost of which could be offset by eliminating tax loopholes and giveaways (known officially as tax expenditures).
But Stern says he's looking for real tax increases. "I'm not an all-cut guy and I just don't know if tax expenditures can produce enough revenues on their own."
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Last week former Republican Senator Alan Simpson, who co-chairs the White House's fiscal commission, drew a storm of criticism for comparing Social Security to a "cow with 310 million tits." But Titgate isn't really about language. It's about both Simpson himself -- who has long viewed Social Security as a bloated program for spoiled old people -- and about the commission as a whole. Comprised of nine tax-averse Republicans and nine Democrats, many of whom have expressed support for Social Security changes in the past, the commission will almost certainly be biased toward benefit cuts, and away from raising taxes, when it presents its report on December 1. Below, the cast of characters who will be making the calls.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)In a move that has Washington scratching its head a bit, former SEIU President Andy Stern has joined the board of SIGA Technologies--a company that specializes in developing drugs to combat biological warfare pathogens.
"Andy is a strong leader and a great addition to our Board of Directors. His insight, experience, and leadership, particularly his understanding of how our federal government works, will complement the skill sets of our existing board members," reads a statement from Dr. Eric Rose, SIGA's Chief Executive Officer.
I've reached out to Stern for comment on this. An unexpected step to say the least.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Outgoing SEIU President Andy Stern, who sits on President Obama's fiscal reform commission, says entitlement programs, as well as taxes should be on the table as members weigh various ways to reduce long-term deficits and debt.
In a letter to President Obama and fellow commission members, obtained by TPMDC, Stern takes the somewhat surprising position that entitlement programs including Social Security should be on the table--but only if changes enhance retirement security for again Americans.
"I agree with many Commissioners who have said that all entitlement programs should be on the table, Stern writes. "We should include tax entitlements as part of that conversation."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Andy Stern will be remembered as a successful and controversial union leader at a time when labor had little power. Though he and other leaders still lack the clout to win labor's biggest battles--and though he gave rise to schisms within the labor community that have angered many, the outgoing SEIU President raised the profile of a declining movement, and successfully pushed for worker friendly reforms in Washington. With his impending retirement now official, the process of replacing him will soon touch off, and all eyes are on his number two, SEIU Secretary-Treasurer, and Stern acolyte Anna Burger.
SEIU's Constitution holds that Burger will begin serving temporarily in the role of President. That post will end when the Executive Board selects a new, permanent president in an election that must occur within 30 days. Labor insiders believe Burger is likely to prevail, though she will likely have rivals.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)AFL-CIO President Richard Trumka said in an interview this morning that union groups view the health care bill as "a good first step."
He did not directly address a question about reports of changes to the excise tax that unions were uncomfortable with early in the negotiations, but lauded the final product and said it can be improved upon.
He said the union talks with people writing the final bill have yielded positive changes, even if it's not everything they initially wanted. "I'm happy about what we've been able to do to change the funding," Trumka told TPMDC in a brief interview in the White House Rose Garden after President Obama signed the jobs bill.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)SEIU President Andy Stern says that the so-called Roadmap for America's Future--an entitlement-slashing bill written by House Republican guru Paul Ryan (R-WI)--should be a warning sign to voters that the GOP hasn't moved on from the Bush-era.
"It's hard to imagine that this is a 21st century plan," Stern told me in an interview this afternoon. "It seems like we're going back to the future."
"Particularly when George Bush inherited a surplus and drove it into a massive deficit, I'm not sure we should trust the Republican party's rehashed ideas to not just bankrupt the country in the end," Stern said.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)A leader of the American Action Network says the Republican "think-and-do-tank" launching this month hopes to have a physical space in Washington very soon, and is working on fundraising and staffing up.
That's according to Doug Holtz-Eakin, the former CBO director and McCain campaign adviser who will lead the policy shop of American Action Network.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Influential Democrats--including SEIU President Andy Stern, and Center for American Progress CEO John Podesta--are beginning to react to last night's big news that the White House will propose a temporary freeze on non-defense discretionary spending in its 2011 budget. By and large, so far, the reaction is: let's withhold final judgment until the entire proposal is on the table.
But just last week CAP tax and budget expert Michael Linden put things rather more starkly.
"We face a very large budget gap over the coming decade, and the scale of the problem is such that no one solution is going to solve it all," Linden wrote in a piece called How to Spot a Deficit Peacock.
"It is going to take a mix of increased revenues, spending reductions, and improved government efficiency to get our fiscal house in order. Those who claim that we could get the budget back to sustainability if we only cut out earmarks, or say that the solution is to simply freeze discretionary spending, are just peddling fiscal snake oil."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The most influential labor organizations in the country have arrived at a common solution to the Democrats' health care conundrum: Move forward, pass the Senate bill through the House, but only if a separate, filibuster proof bill codifying a crucial changes is passed post haste.
"Step one: The House should pass the Senate's health insurance reform bill - with an agreement that it will be fixed, fixed right, and fixed right away through a parallel process," writes SEIU President Andy Stern at the Huffington Post.
Reform can work -- the Senate bill can serve as the foundation for reform and include at minimum the improvements the Administration, House, and Senate have negotiated. We cannot squander the opportunity to make real progress. The House and Senate must move forward together. And, there is no reason they cannot move forward together to make those changes through any means possible -- whether through reconciliation or other pieces of moving legislation.... There is no turning back. There is no running away. There is no reset button.
The AFL-CIO has a functionally similar, but tonally tougher take. "We don't want the House to pass the Senate bill as is," AFL-CIO spokesman Eddie Vale tells me. "It needs to be paired with a Senate [bill]--through reconciliation--that makes fixes."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Service Employees International Union president Andy Stern, who criticized the Senate health care bill last week, issued a statement last night calling the vote a step closer to "reforming" the system.
"While the process to get to sixty and the willingness of individual Senators to use the Senate's rules to distort democracy for their own interest was disappointing - make no mistake about it: for working Americans this vote signals progress," Stern said.
He also blasted Republicans for sitting on the sidelines "jeering, rooting for America to fail."
Stern said there will be a chance to improve the bill after it passes the Senate and lawmakers look to a conference committee to merge that legislation with the House bill. He outlined on CNN's "State of the Union" Sunday what he'd like to see changed during the conference process.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)SEIU President Andy Stern, whose union, along with other major labor organizations, is agonizing over the current state of the health care fight, told reporters today that the Senate should pass a controversial reform bill that has riven the left. In so doing, he defended President Obama from his critics, and offered a scathing critique of the United States Senate, which he says is not up to the task of governance anymore.
"We appreciate that President Obama for a year has been unflinching in his desire to get the job done when it would've been easy to take a detour," Stern said. "We believe the Senate has done all its going to do...and now it's time for a couple of obstructionists to get out of the way."
Stern went on, "it is time for the Senate to send this bill on to conference where the real work needs to be done."
Still, Stern said he opposes the Senate bill in its current form--a bold stance for a consummate insider like Stern, who has often shied away from critiquing the Democrats' agenda.
"We don't like the bill," Stern said. "It has to be improved."
SEIU President Andy Stern doesn't like the Senate health care bill. But he can't quite bring himself to oppose it. In a letter to members, after an emergency meeting of the SEIU executive committee yesterday, Stern has penned a letter to members highlighting both the good and the bad in the legislation, and urging a fight to improve it.
The good:
We talked about everything that makes this reform meaningful:PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)
· The 30 million more people who will have healthcare they can count on;
· The people who will no longer lose their coverage if they get sick;
· All of us who no longer have to worry about being denied coverage because of pre-existing conditions;
· Women who will no longer be discriminated against just because of their gender.
Who are the most frequent guests at the White House? It's impossible to tell from tonight's massive dump of White House visitors logs. The lists are based on media requests, meaning names that weren't specifically asked for by reporters don't appear.
Still, there are some interesting findings in the partial list.
SEIU president Andy Stern appears most often on the list. He visited the White House around 20 times in the past nine months, according to the logs. Former Obama transition director John Podesta appeared about 17 times. NOW president Kim Gandy was the third most popular with about 15 visits.
It makes sense that Stern would be a popular guest -- beyond leading a group key to the Democratic base, Stern's SEIU has been a leading voice on behalf of health care reform.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)On Friday, the New York Times dropped a bombshell on the labor movement with a report that Senate negotiators had scotched a provision commonly known as 'card check'--which would permit workers to form a union when a majority of a business' employees sign an authorization form--from the Employee Free Choice Act.
Some labor officials played it cool when the news broke, but SEIU president Andy Stern insisted that he expected Congress to vote on the provision one way or another. Now, Stern's turning to his online supporters to make sure that happens.
"The New York Times reported on Friday that the Senate is considering dropping majority signup from the Employee Free Choice Act," Stern writes to a 100,000 person mailing list.
By giving employees the free choice to join unions - and not their bosses - majority signup allows workers to have a voice on the job.Congress needs to hear about your support for majority signup. Sign my petition to Congress in support of majority signup and the Employee Free Choice Act.
You can read the entire letter below the fold. Stern wants Congress to consider majority sign up, but that could simply mean a vote on an amendment--card check as a stand-alone provision--as opposed to a vote on a bill with the provision already written into it. Union-sympathetic senators have apparently concluded that EFCA will fail if it includes card check, but a vote on the provision alone would at the very least put senators--particularly conservative Democrats and moderate Republicans--on the record.
Meanwhile, at the insistence of Blue Dogs, who'd rather not be forced to take a public stand, the House earlier this year reportedly decided not to consider EFCA until the Senate finishes work on the bill. There's certainly a significant number of House progressives who support the provision. But those progressives will have to speak up very loudly. If the Senate officially rejects the provision before the House takes up the legislation, it will be an extremely tough sell not to go the path of least resistance.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Andy Stern, president of the Service Employees International Union, weighs in more fully on a report that Democrats have agreed to jettison a key provision of the Employee Free Choice Act: "As we have said from day one, majority signup is the best way for workers to have the right to choose a voice at their workplace," Stern says. "The Employee Free Choice Act is going through the usual legislative process, and we expect a vote on a majority signup provision in the final bill or by amendment in both houses of Congress."
AFL-CIO spokesman Eddie Vale sought to downplay the news a bit, characterizing the compromise as a routine part of the legislative process. But the original Times report says that Democrats have "abandoned" the provision--commonly known as Card Check--altogether. Stern's statement suggests that a compromise on the provision itself might assuage him, calling for "a majority signup provision," but that dropping it completely won't fly.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The New York Times reports that several labor friendly Democrats, including Sens. Tom Harkin (D-IA) and Sherrod Brown (D-OH) have embraced an Employee Free Choice Act compromise to win the support of conservative Democrats. That compromise? Eliminating Card Check--the majority sign-up provision that would end the secret ballot process, and, labor leaders say, curb employer intimidation.
AFL-CIO spokesman Eddie Vale tells Ben Smith: "[T]his is the normal process of how a bill becomes a law."
We are very optimistic about passing the strongest labor law reform since the Wagner Act -- one that lets workers choose to join a union without intimidation or harassment, ensures that workers who join a union get a first contract, and has meaningful penalties for violations.
But Andy Stern seems less than pleased, tweeting, "we expect a vote in the bill or by amendment on majority sign-up in both houses of Congress."
I'm told a fuller statement is on its way, but clearly this compromise won't go down without several spoons full of sugar.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)A source has leaked details to Politico of what reporters there describe as a "draft of HELP's likely public option proposal." Here are the key details:
The option would be one of the Gateway choices. It would follow the same rules as private plans for defining benefits, protecting consumers, and setting premiums that are fair and based on local costs....The payment rates paid by the option would be no more than the local average private rates - but could be less. The Secretary would negotiate these rates.
Initial reports of the Health, Education, Labor, and Pensions process suggested that the committee's draft would call for a public option that paid providers Medicare rates plus about 10 percent--a robust plan which would have left a wide middle ground on the issue between that committee and the Senate Finance Committee. This leak doesn't rule that configuration out explicitly--but if it's accurate, then the committee's kicking the issue back over to the executive branch, and insisting only that the public plan operate on at least a level playing field with private insurers.
It's unclear whether this language will please freshman Sen. Kay Hagan (D-NC)--the HELP Democrat whose reservations about the public option have forced the committee to modify their plan and delay it's roll out.
Still, the developments on that committee seem to have pleased SEIU president Andy Stern who last night wrote, "HELP Committee working hard on solid public option," on his Twitter feed.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (6)Andy Stern, president of the Service Employees International Union answers Andrew Ross Sorkin's question with a question of his own. "Unionized companies are a driving force in our economy, from Kaiser Permanente to Securitas," Stern said in a statement to TPMDC.
The bigger question this country is really asking right now is how do we define a successful company? Is it a company that turns a profit by driving down employee wages successful? Is cutting off benefits or putting people out of work to improve the bottom line for shareholders a business model we as Americans want to embrace? Are we going to embrace the Wal-Mart model as the standard of success, or are we going to raise the bar and rebuild the middle class in this country?PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)We think it's time to have a serious national discussion about what we want the future of our economy to look like--and the voices of women and men who work are critical to that conversation. That's why we're supporting the Employee Free Choice Act, a bill to help create an economy in which companies succeed based on the quality of their services, not on their willingness to exploit or silence workers.
The SEIU's bid to get Barack Obama back on board their campaign to prevent the state of California from slashing home health workers wages continues today in the Los Angeles Times.
The group has purchased ad space in the paper, and used it to run a letter from Pauline Beck to President Barack Obama. "Mr. President, I had hoped your stimulus bill, which is bringing billions of dollars to California, would help protect home care," the letter reads. "Unfortunately, it seems that the money is being used for other things."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Ads to run in Los Angeles and other California media markets starting Wednesday tie President Barack Obama to the recent decision by the state government to slash the wages of home health workers.
According to a source at the Service Employees International Union, the ad features Pauline Beck, an SEIU nurse who participated in a campaign event with Obama two years ago, and spoke at the Democratic National Convention, but who will now be affected by the cuts. Though the source had not seen a script of the ad (and therefore could not confirm whether, or to what extent, it implicates the administration for abandoning attempts to prevent the cuts) it's certainly meant to get Obama's attention as much as that of Governor Arnold Schwarzenegger and politicians in Sacramento.
Obama arrives in California for a fundraiser in L.A. on Wednesday--the same day the six-figure ad buy goes live. Earlier today, SEIU President Andy Stern announced the ads over Twitter. The organization is upset with Obama for withdrawing its threat to withhold health care-related stimulus funds from California if the state it goes through with its plans to cut home care workers' wages to $8 an hour.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)When the California government decided to address his state's budget crisis by slashing pay for home health care workers, and cutting three-quarters of a billion dollars in Medi-Cal healthcare programs for the poor, the White House was furious. So was the SEIU. This is a recession, they reasoned, and those are poor and working class people. Citing the terms of the American Recovery and Reinvestment act, the Obama administration threatened to withhold $6.8 billion in federal stimulus funds unless the California legislature revoked the wage cut.
Obama "went straight for the most direct way to leverage California from the federal government," writes a source with knowledge of deliberations, "it was a big play, no question."
The right was furious about SEIU's involvement in negotiations, as were California government officials. But their concerns were laid to rest today when Washington decided to back down.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Earlier today, President Obama welcomed a motley crew of health reform stakeholders to the White House for a summit of sorts. On hand were representatives of a number of health care industry lobbies--including America's Health Insurance Plans, the American Medical Association, PhRMA, and the American Hospital Association--and, on the other side of things, representatives of the Service Employees International Union.
The groups are pledging to support cost-reducing measures that, at least in theory, dovetail with an Obama-backed health care plan and which would incur saving that could potentially be construed as part of the up-front investment comprehensive reform will require.
Paul Krugman is pleased by this development. So is health wonk Jonathan Cohn, and The Atlantic's Marc Ambinder. Ezra Klein is somewhat less enthused. For their part, the administration is playing portraying today's development as something just shy of a watershed moment. But is there reason to be skeptical of the Kumbaya chorus?
Richard Kirsch of the group Health Care for America Now cautions that "the groups did not agree to anything specific whatsoever."
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Rep. Joe Sestak (D-PA) hasn't been shy about criticizing Sen. Arlen Specter (D-PA) for switching parties last week, but his harshest words came last night in an interview with TPMDC: "He left the fight," said the former admiral and highest ranking military man ever to serve in Congress. "In the military, we just don't leave fights."
Sestak's shot at Specter comes amid grassroots grumbling that the deal Democratic leaders struck to get Specter to defect from the GOP cost the party a shot at putting a real liberal in the seat in 2010.
"I can't figure out...why the deal was done," Sestak told me, saying he's concerned that the party was so quick to embrace Specter for reasons of "expediency," and without regard to the needs of Pennsylvania voters. "It isn't Washington's prerogative to tell us what to do," Sestak insisted.
I asked him whether he'd been on the receiving end of establishment pressure -- from people like Vice President Joe Biden and Pennsylvania Governor Ed Rendell -- to stay out of the race, and he insisted, "I haven't heard from anyone."
While Democrats from the While House on down might be trying to keep the Democratic primary field clear for Specter, they might not necessarily mind the fact that, for the time being, Sestak is applying pressure on Specter to move left. By keeping the door open to challenging Specter in the Democratic primary, Sestak may serve to nudge Specter further than he might otherwise have gone. Yesterday, Sestak told Greg Sargent that if Specter "doesn't demonstrate that he has shifted his position on a number of issues, I would not hesitate at all to get in" to a primary fight against him.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)SEIU president Andy Stern did the unusual yesterday and broke some news on Twitter: In Twitter-esque shorthand--unnecessary, as the message came in well under the allotted 140 characters--Stern wrote, "Congressman Sestak impressive on CNN. Visiting him tomorrow."
We'll try to learn more about the meeting once it's all said and done. Keep in mind, though, that it comes a day after Sen. Arlen Specter (D-PA) insisted on Meet the Press that he's not a loyal Democrat, and opposes significant aspects of the President's agenda. That outburst (unsurprisingly) hasn't done much to quiet calls from the left for Sestak to challenge Specter in the Democratic primary next year.
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