|
A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)
January 16, 2009
Dear Friends,
The Senate reconvened last week after the holiday break and we began the 111th Congress. Last week, I had the honor and pleasure of escorting Senator Chambliss to the Senate swearing in ceremony. With a new president and makeup of the Congress, we have many critical issues to address, not the least of which is our current economic situation. I returned to Washington ready to tackle these issues on behalf of Georgians and all of America. Our nation’s future and the future of our children depend upon serious people putting aside petty partisan politics to find real solutions.
This week and last, I met with President-Elect Obama’s cabinet nominees and had the opportunity to question several of them during committee hearings. I have used this opportunity to ask fair but direct questions on behalf of Georgians to these folks who will be carrying out President-elect Obama’s agenda.
I also introduced legislation to aid our economy, the Fix Housing First Homebuyer Tax Credit, and legislation to reform our nation’s federal budget process, the Biennial Budgeting and Appropriations Act. I encourage you to read the details of these plans below and share your thoughts with me. And lastly, I voted against giving the administration access to the remaining $350 billion of the Troubled Asset Relief Program.
Access to Remaining Troubled Asset Relief Program Funds
On Thursday, I voted to oppose the administration’s request to access another round of funding – some $350 billion in tax dollars – to shore up the nation’s economy. I supported the first round of the Troubled Asset Relief Program, also known as the TARP, because it is critical to our economy to unfreeze the credit markets. However, the administration has used the money in different ways than what was planned originally, and the credit markets are still frozen. As a result, I could not justify supporting the release of the remaining funds.
The Emergency Economic Stabilization Act authorized the Treasury Secretary to immediately implement the TARP and use up to $250 billion to purchase distressed assets from institutional investors. The Treasury Secretary was allowed to access an additional $100 billion to purchase these distressed assets with presidential approval, which President Bush granted.
However, the administration then used the money to make direct investments in banks rather than purchase troubled assets from banks and other financial institutions, as was originally planned. The administration also used some of the funds to assist U.S. automakers. On Dec. 17, 2008, I sent a letter to President Bush expressing his strong opposition to giving the auto industry access to funds.
The remaining $350 billion may be accessed if the President transmits a written report to Congress requesting the funds. On Monday, President Bush, acting on behalf of President-elect Obama, requested access to the remaining $350 billion. The Treasury Secretary may use this additional funding unless within 15 days Congress passes a joint resolution of disapproval.
Unfortunately, the Senate rejected the resolution of disapproval today by a vote of 42 to 52. I cast one of the 42 votes in favor of this resolution of disapproval.
Fix Housing First Homebuyer Tax Credit
Home prices and property values continue to decline across the country as foreclosures flood the market. Americans are hesitant to buy homes and existing home inventory is nearing an all-time high. Our economic crisis started with housing, and our economy will continue to suffer unless we do something now to immediately fix this problem. That’s why on Thursday, I introduced the Fix Housing First Homebuyer Tax Credit Act to jump-start housing demand and to boost the economy by expanding the homebuyer tax credit passed by Congress last year.
I first began pushing for a homebuyer tax credit early last year with a bill that offered a tax credit for the purchase of those homes that were causing the unprecedented increase in housing inventory: new and foreclosed homes. In April 2008, the Senate passed legislation to stimulate the nation’s declining housing market that included my proposal.
However, the final version of the legislation that was signed into law included a tax credit only for first-time homebuyers that must be repaid over a 15-year period. The new bill I introduced Thursday would expand that tax credit to include all purchasers and would eliminate the current requirement that it be repaid. Repayment of the tax credit would only be required if the home is sold within three years.
My legislation would also enhance the existing homebuyer tax credit by extending the eligibility period to December 31, 2009; increasing the credit amount to 10 percent of the home price capped at 3.5 percent of FHA loan limits (geographically dependent) – ranging between approximately $10,000 and $22,000; “monetizing” the credit so it is available at time of closing; and allowing the credit to be used in conjunction with mortgages financed by state or local bonds.
In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction. Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. I believe the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered. That’s why I have pushed hard for a non-repayable tax credit for homebuyers; because it will work.
Biennial Budgeting and Appropriations Act
In an effort to end reckless spending and reform the federal budget process, last week I introduced legislation that would convert the budget process from an annual spending process to a two-year cycle, with one year for appropriating federal dollars and the other year devoted to oversight of federal programs.
The Biennial Budgeting and Appropriations Act, S.169, would require the president to submit a two-year budget at the beginning of the first session of a Congress. Members of Congress would then need to adopt a two-year budget resolution, a reconciliation bill if necessary and two-year appropriations bills during that first session. The legislation ensures the enactment of two-year appropriations bills by providing a new majority point of order against consideration of an appropriations bill that fails to cover two years. The second session of a Congress would then be devoted to the consideration of authorization bills and oversight of federal programs. I believe the enhanced oversight will result in more accountability of government programs.
One of the problems we have in Congress with deficit spending is spending money on projects that shouldn’t be funded with tax dollars and programs that have outlasted their usefulness. So this is first and foremost about changing our budget process and setting priorities for spending. Also, under this legislation, if you appropriated during odd-numbered years and did oversight during even-numbered years, wouldn’t it be refreshing to have candidates seeking federal office in even-numbered years talking about the oversight of federal programs instead of how they want to spend more of the taxpayers’ dollars. Congress must become better stewards of the taxpayers’ money, and this legislation is a good step in that direction.
Labor Secretary Nominee Solis and Card Check
I strongly oppose the so-called Employee Free Choice Act, also known as Card Check, which would eliminate the rights of workers to participate in a secret-ballot election in order to certify the creation of a union. The legislation would force employees to make a public declaration of their preference by allowing union organizers to bypass elections if a majority of employees sign cards authorizing a union. Unfortunately, this legislation passed the U.S. House in 2007 and is expected to be brought forth by Democratic leaders for a vote in the Senate this year.
Therefore, during the nomination hearing of Secretary of Labor nominee Hilda Solis before the Senate Committee on Health, Education, Labor and Pensions, I questioned Ms. Solis as to why she voted in the U.S. House for legislation to strip workers of the secret ballot when deciding whether to unionize in 2007, but pushed legislation in the California legislature in the late 1990s insisting that workers have the secret ballot when negotiating with management on flex time or overtime pay. Representative Solis responded that she was not prepared to make a statement about her position on the secret ballot at this time.
I believe the current system for workers to decide whether to unionize through a secret ballot has worked well because it neither advocates nor discourages unionization. It seems to me that declining union membership as the motive behind the Card Check legislation, which did not receive committee consideration. Union membership among private sector employees is at its lowest level in decades.
VA Nominee Shinseki and VA, DOD Collaboration
On Thursday, I used the Veterans Affairs Secretary nomination hearing for retired four-star General Eric K. Shinseki to push for further cooperation between the Department of Defense and the Department of Veterans Affairs to meet the health care needs of returning service members. It is very important that we have a seamless transition from the Department of Defense to Veterans Affairs. If we can replicate the success between Augusta VA Medical Center and Eisenhower Army Medical Center, our veterans will be well-served.
The Augusta VA Medical Center operates the nation’s only medical rehabilitation unit within the VA system for active duty military personnel. Dr. Dennis Hollins, who works for the VA, heads the unit, and active duty medical personnel are stationed in the unit working alongside VA doctors and nurses. I urged General Shinseki to visit the Augusta unit within the year.
Before the hearing, I submitted several questions to Shinseki. Specifically, I asked the nominee how he will continue the progress that has been made in the area of seamless transition between the Department of Defense and the Department of Veterans Affairs.
Shinseki replied in writing that: “I have been advised that substantial progress has been made in the transition of patients from DoD to VA. I am aware of the programs that established the Federal Recovery Coordinators, the Recovery Care Coordinators, Transition Patient Advocates, and case management improvements. I’ve also heard all is not done, and if confirmed, I will personally emphasize the importance of these programs. While I am not familiar with the specifics of the Augusta program, I do know that there is a very good relationship between the Augusta VAMC and Fort Gordon, and I assure you that, if confirmed, I will seek more details about it and the feasibility of its expansion and perhaps emulation in other areas.”
Next Commissioned Aircraft Carrier to be Stationed near Kings Bay
Thursday, the U.S. Navy signed the official Record of Decision to base the next aircraft carrier to be commissioned at Naval Station Mayport located near Jacksonville, Florida. Last November, Senator Chambliss and I sent a letter urging the U.S. Department of Defense to base the next aircraft carrier at Naval Station Mayport and I am so pleased with their decision. The resources at Kings Bay which would likely provide repair and maintenance capability as well as training opportunities will save the Navy time and money in the long term. This move will also provide a stimulus for Georgia’s economy at a time when we need it.
Israeli Strikes on Hamas Military Targets
On December 27, 2008, Israel launched airstrikes against Hamas in Gaza. Israeli ground troops entered Gaza on January 3, 2009.
I believe that Israel has to defend itself against unprovoked attacks by Hamas. Israel and the United States share the same goal of eradicating the terrorism that plagues the Middle East, which I saw firsthand when I traveled to Israel in November 2007. The United States should continue to support the peace process between Israel and the Palestinian Authority in order to ensure that their people can enjoy free and democratic governments.
I also disapprove of the role of Iran in supporting terrorism in the Middle East and believe that Iran must not be allowed to continue to fund, support, encourage or promote terror, whether through Hezbollah in Lebanon and Syria, through Hamas in the Gaza Strip or by continuing to defy the world in developing nuclear weapons.
What’s on Tap?
Millions of people from around the nation are expected to come to Washington Tuesday for the inauguration of Barack Obama as the 44th President. I look forward to greeting many Georgians who are making the trip to Washington for this historic event. After that, the Senate will finish consideration of the Lilly Ledbetter Fair Pay Act, and expects to take up legislation expanding the State Children’s Health Improvement Program. It also may take up an economic stimulus package.
Sincerely,
Johnny Isakson
|
Governmental Affairs 
