Dahlonega-Lumpkin County Chamber of Commerce

Dear Friends,

This week, the Senate passed my amendment to protect the hard-earned pensions of millions of employees and to encourage companies to continue their defined benefit pension programs by providing temporary relief from statutory pension funding obligations.

The amendment, which I introduced with Sen. Ben Cardin, D-Md., was attached to legislation that would extend a number of individual and business tax breaks. My amendment was accepted by unanimous consent, and the overall bill cleared the Senate.

Without this pension funding relief, I firmly believe it will be difficult to create jobs in the struggling economy and that many companies will be forced to cut expenses and eliminate jobs in order to make their required pension contributions.

I also fear companies may decide to terminate their defined benefit pension programs altogether and turn them over to the Pension Benefit Guaranty Corporation, the federal agency responsible for funding pensions when companies terminate their pension plans. I believe my amendment will help protect American taxpayers by ensuring the Pension Benefit Guaranty Corporation remains solvent.

Under the main provision of the amendment, employers would be allowed to choose from two options to spread out their pension obligations. Under the first option, employers would be able to repay their pension shortfall over seven years, but the seven-year amortization would start two years late. During the two-year delay period, the employer would only owe interest on the shortfall. Under the second option, employers would be able to pay back their pension shortfall over 15 years.

Congressional Pay
I also have co-sponsored legislation that would block the automatic cost of living increase for members of Congress in fiscal year 2011.

Our economy is still recovering from one of the worst recessions in our nation’s history. American families aren’t spending far and away above their means, but Congress continues to spend money at an alarming and unsustainable rate. I can’t think of anyone less deserving of a pay raise in this economy.

I joined a majority of my colleagues in voting to block the annual increase for fiscal year 2010. I also have voted for a bill to repeal automatic pay raises altogether, which passed the Senate in 2009. That bill is pending in the House of Representatives.

Additionally, I donate the automatic pay increase I received for fiscal year 2009 by writing a check each month to the Atlanta Community Food Bank equal to the amount of the pay raise.

Rein in Government Spending
I also signed on as a co-sponsor to legislation to rein in deficit spending. The legislation, the Honest Expenditure Limitation Program (HELP) Act of 2010, would freeze discretionary spending at fiscal year 2008 levels for all “non-security” appropriations.

Balancing the federal budget is an obligation that those of us in Washington owe to future generations of Americans, and this legislation takes immediate steps to stop out-of-control federal spending. Congress continues to spend money at an alarming and unsustainable rate, and it is a recipe for disaster and failure.

Specifically, the proposal would freeze discretionary spending at fiscal year 2008 levels for all appropriations, except those for the Department of Defense, Department of Homeland Security, Department of State, Veterans Administration and national security functions of the Department of Energy. The spending freeze is to be phased in over five years from fiscal year 2011 to fiscal year 2015, reducing the cap by an equal percentage each year.

Using the Office of Management and Budget’s own methodology for estimating future spending levels, this proposal would save $634 billion more than President Obama’s proposed spending freeze and would save almost $900 billion over the next 10 years, compared with staying the present course.

Audit the Federal Reserve
I continue to support a more comprehensive approach of investigating the financial crisis that has impacted our nation. S.604, the Federal Reserve Sunshine Act of 2009, would mandate an audit of the Federal Reserve by the Comptroller General of the United States to be reported to the leadership of Congress, along with the leadership of committees of jurisdiction. The audit would be completed by the end of 2010.  It was the intent of Congress in 1913 to create the Federal Reserve as an independent, non-partisan organization and the Federal Reserve has been exempt of audit ever since.  However the time has come where there is a need for more accountability across the board, and that is why I am a co-sponsor of S.604.

In addition, I am glad to report that the Financial Crisis Inquiry Commission that I helped create last year is well under way in its investigation of the near collapse of our banking system and the loss of tens of trillions of dollars.  Under the legislation I introduced and got passed last year creating this Commission, the panel has until December of this year to report its findings. It is imperative that we gather all the facts and not rush to legislate as we seek to recover from today’s recession. Rest assured, I am committed to addressing the issues that led our economy into its current state.

What’s on Tap?

Next week, the Senate will resume consideration of the House message to accompany H.R.2847, the Jobs bill.  

Sincerely,
Johnny Isakson