Government Relations

Negotiators from the House and Senate reached an agreement just hours before the government was set to shut down to continue funding the federal government for the next fiscal year. The agreement includes $1.043 trillion in spending, but does not include changes to the sustainable growth rate, (aka ‘doc fix’) nor extensions to the Social Security payroll tax cut and unemployment insurance benefits. Negotiators were still working to reach agreement on these additional issues, the main focus of the negotiations is the length of the extensions and how to pay for them, not whether to work to extend them. 

Congressional Republicans propose to cut nearly $38 billion from the Affordable Care Act, increase premiums for wealthy Medicare beneficiaries and change the formula by which unemployment benefits are calculated in exchange for a 2 year ‘doc fix’ and one year extensions of the other provisions.  Democrats recently backed off their proposal to raise taxes on Americans making more than $1 million a year, but still advocate using more than $40 billion in projected savings from the early removal of troops from Iraq.  With both sides eager to adjourn for their extended holiday break, the spending bill will be voted on and passed today to avert government shutdown at midnight tonight.  An agreement funding the rest of these must-pass items could be reached today or over the weekend.  A temporary 2 month extension of the payroll tax cut, unemployment benefits and the “doc fix” is being prepared in the event negotiators cannot reach a longterm agreement before adjournment.  MORE

The city of Denver, Colorado soundly defeated a referendum this week that would have mandated paid sick-leave for employees of all private sector businesses, restaurants and golf courses included.  

The proposal, Initiative 300, was opposed Democratic and Republican politicians alike, who cited an already difficult job creation environment as reason to oppose increasing burdens to local small businesses.  The Colorado Restaurant Association and allied businesses created a grassroots campaign and ran advertisements featuring local politicians opposing the initiative. In the end, the initiative failed by nearly a 2 to 1 margin, a result that likely silences proponents of the proposal for the near future.  

The city of Seattle, Washington recently passed a similar initiative and workers rights groups were hoping to continue advancing changes at the local level, rather than fight for statewide or national initiatives.  VGM Club will continue to monitor workers rights issues on all levels of government and keep Club members up-to-date on the most pressing issues facing the golf and restaurant industries.  

VGM Club Government Relations also wrote about the Seattle vote earlier this year HERE.

The Obama Administration has decided against asking the 11th Circuit Court of Appeals in Atlanta to hear a case questioning the constitutionality of the Affordable Care Act.  Earlier this year, a three member panel of the 11th Circuit ruled that congress overstepped their authority in passing the controversial health care legislation requiring nearly all Americans to obtain health insurance by a 2-1 margin.  The case is now likely to make its way to the United States Supreme Court at some point next summer, right in the middle of the Presidential election. 

With congressional Republican attempts to repeal the Affordable Care Act legislatively unable to make meaningful inroads, many have decided the judicial process is the last, best hope to repealing the controversial health care law passed in 2010.  To date, appeals courts that have heard cases on the Affordable Care Act are split, with a Cincinnatti court upholding the law and Virginia and Atlanta ruling it unconstitutional.  Many speculate the Justice Department’s inaction on asking the 11th Circuit to rehear the case is an indication of the Administration’s confidence in the case being overturned and ruled constitutional by the Supreme Court prior to the Presidential election next fall. The next logical step is for the Obama Justice Department to ask the Supreme Court to hear the case.  MORE

After weeks of political posturing by House Republicans, Senate Democrats and the White House, a deal was reached to raise the nations’ debt limit and avert the first ever default of the United States government late last month.  Just two days before the government was set to default, Senate Majority Leader Harry Reid, Minority Leader Mitch McConnell and House Speaker John Boehner agreed to cut $2.4 trillion from the federal deficit over 10 years and raise the federal debt limit in two installments over the next 18 months from $14.29 trillion. The deal largely punts on the difficult questions of entitlement spending reforms, but does outline spending cuts at the same level as the debt increase, a key priority of congressional Republicans.  The deal also allows the President to avoid another embarrassing vote to increase the debt limit during an election year and largely protects entitlement programs from the budget ax, key priorities of Democrats and the Administration.

The final deal, known as the Budget Control Act of 2011, passed both the House and Senate just hours before the first ever collapse of the full faith and credit of the United States government.  The legislation cuts over $900 billion from the deficit immediately through budget caps on discretionary and non-discretionary spending and utilizes an oft used Washington scheme of creating a “super committee” to convene and map out a plan to reduce the deficit by at least an additional $1.2- $1.5 trillion over 10 years. This “super committee” includes twelve members of congress, six Democrats and six Republicans, pulled from both the House and Senate. The committee’s eventual plan must be passed by November 23^rd and will be granted a guaranteed up-or-down vote in both houses by December 23^rd. (more…)