CHAIRMAN'S MARK ON RECONCILIATION SAVINGS RELEASED

Republican members of the Senate Finance Committee reached agreement last week on a $10 billion mandatory saving package as part of the budget reconciliation process. The proposal would cut $4.26 from Medicaid and $5.76 billion from Medicare over five years. Also included are provisions to provide $1.8 billion over five years in extra Medicaid funds for states affected by Hurricane Katrina and $834 million for a scaled back version of the Family Opportunity Act that would allow families at or below 300 percent of the federal poverty level to buy Medicaid coverage for their disabled children.

To cover the cost of the proposed savings, the proposal requires that payments to pharmacists be based on an "average manufacturer's price" and also tightens rules limiting transfer of assets by individuals seeking to qualify for Medicaid coverage of nursing home care. Savings to Medicare include $6.5 billion through risk-adjusting payments to Medicare insurers and $5.4 billion by eliminating a stabilization fund created by the 2003 Medicare drug law to encourage preferred provider organizations to offer regional coverage to Medicare beneficiaries.

Visit the Committee website for a copy of the Chairman's mark as well as a summary:  http://finance.senate.gov/sitepages/legislation.htm

 FY 2006 TRANSPORTATION-TREASURY-HUD APPROPRIATIONS BILL PASSES SENATE

Last Friday, the Senate passed, 93-1,  the FY 2006 Transportation, Treasury, HUD, the Judiciary, and Related Agencies appropriations bill (H.R. 3058), which provides total discretionary funding of $65.96 billion, including $593 million for District of Columbia funding. The District of Columbia funding bill (S. 1446) was incorporated into H.R. 3058 so it more closely resembles the House bill and avoids the need for multiple conferences.

The Department of Housing and Urban Development (HUD) is funded at $38.9 billion, an increase of about $2.9 billion over the FY 2005 level. Section 8 tenant-based assistance is funded at $15.6 billion, a decrease of $209 million from the budget request and $870 million over the FY 2005 level. Section 8 project-based assistance is funded at $5.1 billion, about $226 million below the FY 2005 level and the same as the budget request. An amendment to increase funding by $3.1 billion for the Low-Income Home Energy Assistance Program was rejected by a vote of 53-46.

Senator Reid has acquired the following list of Nevada projects under the FY 2006 Transportation Appropriations Bill.  For more information and his full press release, please visit: http://reid.senate.gov/record2.cfm?id=247592 (items below taken from press release).

Reno/Tahoe International Airport - $12.3 million
For a terminal air-traffic control tower, a sound insulation program to protect nearby homes, and construction on the second-floor concourse

Reno Stead Airport - $2.349 million
For improvements including runway and taxiway reconstruction and better runway lighting

Nevada Department of Transportation - $4 million
For buses and bus terminals around the state

Regional Transportation Commission of Southern Nevada - $4 million
For planned light rail service from Henderson to Las Vegas, and to expand clean, energy-efficient MAX bus service to Boulder Highway

The City of Sparks - $1 million
For new bus terminals

The Pahrump Senior Center - $300,000
To establish reliable bus service for seniors citizens in Pahrump

Senator John Ensign offered an amendment to the bill, co-sponsored by Senator Reid that would protect southern Nevada air tour operators’ ability to provide aerial tours of the Grand Canyon. In 2000, Congress exempted Las Vegas-based air tour operators from a new Lake Mead air tour management plan because air tour operators fly over the lake solely as a route to the Grand Canyon, not to tour Lake Mead itself. The Federal Aviation Administration sought to submit air tour operators to the complex Lake Mead plan simply because many of those flights take planes over Hoover Dam so tourists can see the dam on the way to the Grand Canyon. 

Senator Ensign’s amendment establishes that flights from Las Vegas to the Grand Canyon that travel over Hoover Dam are part of the Lake Mead exemption and not subject to further FAA restriction.  For more information on the amendment and for his full press release, please visit:  http://ensign.senate.gov/record.cfm?id=247541&  (information on Ensign amendment taken from press release).

The bill now heads to conference with the House; the two versions have significant differences to overcome, including top-line numbers. The two chambers will also have to figure out how Amtrak should be funded. 

HOUSE COMMITTEE APPROVES TANF PORTIONS FOR RECONCILIATION

Last week, the House Education and the Workforce Committee completed its markup of TANF reauthorization legislation (H.R. 240). Although the House Ways and Means Committee has primary jurisdiction over the TANF block grant, the Education and the Workforce Committee has authority over TANF work requirements, as well as education provisions within the bill. The committee increased the work hours from 30 hours to 40 hours; provided an additional $1 billion in child care funding; restricted the amount of months that vocational educational training can count towards work; and raised the participation rate requirements from 50 percent to 70 percent. The committee reported their markup of TANF to the House Budget Committee for inclusion in the House budget reconciliation savings package. It also reported the bill directly to the House floor as a precautionary measure. The House Ways and Means Committee has not yet marked-up H.R. 240, but intends to include the legislation within the budget reconciliation process. The Senate Finance Committee reconciliation package, which was released yesterday, does not include TANF reauthorization as part of its package.

 SEX OFFENDER REGISTRATION BILL APPROVED IN SENATE JUDICIARY COMMITTEE

Last week, the Senate Judiciary Committee approved by voice vote a bill (S. 1086) that would impose substantial penalties on sex offenders who fail to meet registration requirements and mandatory minimum sentences for individuals who commit violent crimes against children under 12 years of age. Convicted sex offenders who commit crimes against children resulting in death would receive 30 years to life in prison, 20 years to life for kidnapping, and 10 years to life for serious bodily injury to children.  S. 1086 states that "nothing in this title shall be deemed to require a participating state to take any action that would violate that participating state's constitution."

The House passed a sex offender measure (H.R. 3132) last month.  An amendment by Congressman Gibbons that mirrors Nevada's law to be in compliance with all registration requirements before being issued a driver’s license, and that their license must be renewed annually,  passed.  The amendment also calls on the GAO to study the feasibility and costs for all states to implement Nevada's requirements and requires the GAO to study what type of federal grant program may be needed to assist the states with implementing this requirement. 

Congressman Porter also offered an amendment aimed at improving school safety.  The amendment would allow state and local education agencies to immediate access to national criminal information and databases in order to review the background of individuals seeking employment in a position working with or around children. 

Nevada recently passed legislation that adds safeguards to the state's sex offender registry program and makes improvements to the public information website.   Nevada is one of the first states to participate in the National Sex Offender Public Registry (NSOPR) developed by the U.S. Department of Justice to allow for the secure and reliable organization and transmission of public sex offender data from our nation by creating a link to each participating state's public safety web site. 

KATRINA EDUCATION PACKAGE INTRODUCED

Senators Mike Enzi (R-Wyo.), Edward M. Kennedy (D-Mass.), Lamar Alexander (R-Tenn.), and Christopher Dodd (D-Conn.) introduced a new Katrina assistance package to assist states and school districts that accepted displaced students. The bill assures that every student is eligible for reimbursement and that state education agencies manage K-12 reimbursements. Public and eligible non-public schools could be reimbursed up to $6,000 per displaced general education student and $7,500 for students with disabilities. States could retain one percent of funds to administer the program; it is being determined if states could retain federal funds to reimburse for state incurred costs. The bill also includes a waiver that highly qualified teachers in affected areas would be considered highly qualified in new states for one year. Assistance is limited to the 2005-2006 school year.

UNEMPLOYMENT BENEFITS AND HEALTH PROGRAM EXTENSION BILL PASSES HOUSE/SENATE FOR HURRICANE VICTIMS

The House and Senate reached a compromise on extending three health programs that expired on September 30, 2005, and on providing additional funding for unemployment benefits in states affected by hurricanes Katrina and Rita. Both chambers cleared legislation (H.R. 3971) that would extend transitional medical assistance (TMA) and abstinence education until December 31, 2005, as well as extend the Qualified Individual Medicare Savings Program (QI-1) by two years through September 30, 2007. To pay for the cost of this extension, H.R. 3971 bans Medicare coverage of erectile dysfunction drugs and will allow states to ban them from Medicaid. H.R. 3971 does not include a Senate provision that would have extended the Temporary Assistance for Needy Families block grant and related programs through March 31, 2006.

The bill also would allow all states to use funds designated for unemployment administration to help workers seeking unemployment benefits due to the hurricanes.