In a reversal from recent weeks, last week's economic reports were generally negative. Of the five major economic indicators, four declined. (To see all of last week's indicators, see the Latest Economic Reports section below.)
January 25, 2010
Massachusetts Election Creates Uncertainty for Future of Health Reform
Health reform took a significant turn this week as Senator-elect Scott Brown (R-MA) prevailed in Tuesday’s Massachusetts election for former Senator Kennedy’s seat – giving Republicans the 41 Senate seats needed to halt the Democrat majority’s agenda. Clearly the next step is an important one that could hold significant political consequences in the upcoming mid-term elections, and there is no clear direction. Most Americans want health care reform that is bipartisan and want legislators to start over with a new approach – a view shared by Senator-elect Brown.
NAM Action
Thanks to all NAM members who signed onto the broad employer letter outlining key concerns with the current health reform proposals (click here). With your help over 730 signatures were on the final letter.
Senate
While Senate Majority Leader Reid (D-NV) confirmed that further action on health reform would not occur before Scott Brown is officially certified, moderate Democrats have not abandoned the idea that some form of health reform should still occur this year. Conventional wisdom is that the Republican victory in Massachusetts is a public outcry for bipartisan reform. Senate Republicans couldn’t agree more -- and they requested the majority to engage their caucus as “full partners” in the effort to implement the message of the voters to “develop policies that rely less on government spending and regulation.” Leader Reid is under additional pressure from the American Medical Association to deal with a permanent “Doc-Fix”. As a result, the Senate added the House-passed Doc Fix to its calendar, an expensive proposition that is not offset by cuts in spending.
House
House leadership acknowledged the setback of Tuesday’s election results and the concerns of Massachusetts citizens but made it clear that health reform will move forward. A couple of options were kicked around this week – including passing the Senate bill with the intention of amending certain provisions through budget reconciliation – which allows only a simple majority to pass but also requires that bill provisions be directly related to the budget. There is also waning political support for a reconciliation maneuver. Speaker Pelosi announced that she does not have the votes to simply pass the Senate bill, which would have negated the need for another Senate vote. At press time, the option of moving a less robust bill that includes insurance reform, small business support and delivery reforms was under serious consideration.
Administration
The Obama Administration has asked for a slimmed down version of the bill. This request is a direct indication of the Administration’s efforts to show the American public they are listening. The White House is also feeling pressure to back off its aggressive agenda on a number of fronts to reserve the Democratic majorities.
WHAT’S NEXT FOR HEALTHCARE REFORM?
January 25, 2010 – John Zern, Aon Consulting
The national health reform debate fundamentally shifted last week following the election of Senator Scott Brown to the Massachusetts Senate seat, formerly held by Senator Ted Kennedy. Senator Brown's election takes away the supermajority voting advantage Democrats had in the Senate with 60 votes and gives the Republicans 41 votes to block revised health reform legislation.
Where does Congress and the nation go from here on national health reform? We expect to learn more from President Obama when he delivers his State of the Union address on Wednesday, Jan. 27, but we expect the following options to be debated and discussed over the coming weeks:
Option 1- Work over the next 60 days to achieve consensus on a scaled down version of health reform, which could be supported by moderate Republicans in the Senate
President Obama has already voiced his support for this approach. Moderate Republicans such as Senators Olympia Snowe and Susan Collins would be open to negotiating an incremental and scaled down approach to health reform. The biggest challenge would be to get the buy-in of House Democrats to a reduced bill, since they have invested significant time and energy in the House version of health reform and would be reluctant to accept a scaled down bill. An additional complication is negotiating a revised bill, which will consume the attention of House and Senate leaders, when there is a desire to wrap-up the health reform discussion and shift the national debate to the economy and creating jobs.
Health reform provisions, which may be discussed in a scaled down bill include:
- Insurance market reform
- Implementation of health information technology
- Subsidies for low income Americans to purchase health coverage
- Quality of care programs such as the patient centered medical homes
- Wellness incentives and new initiatives
- Tort reform
- COBRA subsidy extension
- Ban on lifetime maximums
- Small business tax credits
Provisions less likely to be considered in a scaled down bill include the employer mandate, ERISA changes, a significant expansion of Medicaid eligibility, the public plan, and the high cost excise tax.
In addition to Option 1, other key stakeholders are offering support of alternative options below:
Option 2- Ask the House to pass the Senate bill "as is"
For this option to work, House leaders must persuade House members to pass the Senate bill without changing a single comma or paragraph. Since House members have strongly held beliefs on health reform, this approach will be difficult to achieve. Additionally, moderate Democrats in the House, who are running for re-election in 2010, may be reluctant to support the Senate bill based on the Massachusetts election results.
Option 3 - Support a new procedural process where the House "passes" the Senate bill and use "reconciliation" rules to pass amendments to the Senate bill, which pass the Senate with 51 votes instead of 60 votes
This approach would be appealing to House leaders, who want to see the current iteration of health reform pass Congress, but it will likewise be difficult to achieve. The House and the Senate need to achieve final agreement on revisions to the House bill. "Reconciliation" will be strongly opposed by Republicans and this approach may be difficult for moderate Senate and House Democrats to support.
Option 4-Drop national health reform legislation
This option is unlikely to happen since President Obama has made national health reform the #1 domestic issue for his administration and the national Democratic Party. Another option preferred by some Republicans is to drop all consideration of current bills and begin the debate on health reform from the starting point.
The next milestone in the health care reform debate is the President's State of the Union address scheduled for Wednesday, Jan. 27. Aon Consulting will schedule a series of national webcasts as more details emerge.
GLOBAL WARMING CONCERNS AGAIN RANK DEAD LAST IN PUBLIC'S MIND
January 25, 2010 - Pew Research Center
A new Pew Research Center poll shows that dealing with global warming ranks at the bottom of the public’s list of priorities. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3298/reftab/3119/t/Global%20warming%20concerns%20again%20rank%20dead%20last%20in%20publics%20mind/Default.aspx
GLACIER SCIENTIST: I KNEW DATA HADN'T BEEN VERIFIED
January 25, 2010 - Daily Mail
The scientist behind the bogus claim in a Nobel Prize-winning UN report that Himalayan glaciers will have melted by 2035 last night admitted it was included purely to put political pressure on world leaders. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3292/reftab/3119/Default.aspx
CLEAN WATER ACT FIX MAY NOT BE NAVIGABLE IN 2010
January 25, 2010 - E&E News
By all accounts, Transportation and Infrastructure Chairman James Oberstar (D-Minn.) will face an uphill battle this year if he tries to move a controversial bill to amend the Clean Water Act. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3260/reftab/3119/t/Clean%20Water%20Act%20fix%20may%20not%20be%20navigable%20in%202010/Default.aspx
CNN POLL: 3 OF 4 AMERICANS SAY MUCH OF STIMULUS MONEY WASTED
January 25, 2010 – CNN
Nearly three out of four Americans think that at least half of the money spent in the federal stimulus plan has been wasted, according to a new national poll. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3295/reftab/3119/Default.aspx
EPA TIGHTENS NO2 STANDARD
January 25, 2010 - Greenwire
U.S. EPA today strengthened the federal public health standard for nitrogen dioxide (NO2) pollution, a limit that has been in place for nearly four decades. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3299/reftab/3119/t/EPA%20tightens%20NO2%20standard/Default.aspx
STATE POLLS SHOW VOTERS OPPOSED TO FEDERAL CAP-AND-TRADE SYSTEM
January 25, 2010 - PR Newswire
The National Federation of Independent Business released 16 state surveys assessing voter concerns on the impact a cap-and-trade system would have on jobs, energy prices and economic growth. Read More... at http://www.westernroundtable.com/News/ArticleDetails/tabid/2735/smid/6719/ArticleID/3249/reftab/3119/t/State%20polls%20show%20voters%20opposed%20to%20federal%20cap-and-trade%20system/Default.aspx
TAILORING RULE COULD HARM GAS INDUSTRY, ASSOCIATION OFFICIALS WARN
January 25, 2010 - Oil & Gas Journal
The presidents of three large natural gas trade associations expressed concern with the U.S. Environmental Protection Agency’s tailoring rule under the agency’s proposed greenhouse gas emission regulations. Read More... at http://www.westernroundtable.com/News/CongressionalNewsSubmission/tabid/3117/smid/6719/ArticleID/3275/reftab/3119/t/Tailoring%20rule%20could%20harm%20gas%20industry%20association%20officials%20warn/Default.aspx
Annual Disadvantaged Business Enterprise Training
Sponsored by:
· PTAC offices, St. George and Cedar City
· Utah Transit Authority
· Utah Department of Transportation
· SLC Dept of Airports
Date: Thursday, February 25, 2010
Time: 8:30 a.m. – 12 noon
Dixie Business Alliance – University Plaza
1071 East 100 South, C7
St. George, UT 84770
Small businesses owned by women and minorities that provide professional services, construction and supplies related to the transportation field can apply for a free certification. This certification is called the Disadvantaged Business Enterprise (DBE) certification (49 CFR Part 26). Airport, Highway and Transit agencies across the US seek out firms certified as DBE for federally funded projects.
If you are interested in learning about a free certification program that can help your small business find excellent contracting opportunities with State (UDOT), City (City of St. George, SLC Dept of Airports, Cedar City) and transit (UTA, Logan Cache Valley, Park City Corporation) please come to this workshop. There is no charge to attend.
This year’s workshop will cover the following topics –
- What is the DBE certification and how do I apply?
- What is the benefit and which agencies / municipalities use this certification?
- How do I generate business in the State of Utah and to surrounding states?
- What types of business documents do I need to apply for DBE certification?
- What is the bidding / contracting process (UTA, SLCDA, UDOT),
Trucking regulations
Please call Keith Christensen at 435.652.7754 to confirm your attendance for this training.
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