Economy & Budget

Higher education is the single best investment our young people can make in themselves. Higher education is the single best investment families can make in the success of their children. Higher education is the single best investment our nation can make in its future. Yet financial barriers will prevent 4.4 million high school graduates from attending a four-year public college over the next decade, while 2 million high school graduates will attend no college at all. Yesterday, I was pleased to join several of my House Democratic colleagues and young Americans from across the country who shared their stories and called for Congress to reverse the raid on student aid.

While it was inspiring to see so many young people with so much potential, it was also heart-wrenching to know many of them will be saddled with tens of thousands of dollars in debt. One young man, a student at American University and the son of a public school teacher and a painter, shared that he would be shouldering some $40,000 in debt when he graduates. Nationwide, the typical college student graduates with $17,500 in college debt, a chilling discouragement to the young Americans who would be the future leaders, thinkers and innovators of our nation.

At a time when we should be investing in America's college students and high school seniors, we are going in the wrong direction. On July 1, the interest rates on outstanding federal student loans are going to rise to 7.14 percent-the highest rate in six years-and the rate on outstanding federal parent loans will rise to 7.94 percent. College students and their parents should seriously consider consolidating their loans before June 30th. House Democrats have a New Direction for America that includes a plan to cut student loan interest rates in half. But until we can pass legislation that will reduce the burden on our young people, America's working families remain at the mercy of the student loan industry and their Republican allies here in Congress.

To see how much you would save under the Democratic plan, click here http://edworkforce.house.gov/democrats/calculator.html

If our nation is going to compete successfully in the global economy, we need everyone contributing their creativity, skill, and hard work. That's only going to happen though if we allow our young people the opportunity to get a quality education.So why, when the average college student now graduates with $19,000 worth of debt, is Congress bending over backwards to give tax breaks to oil companies and millionaires instead of helping those students? That's not just immoral, it's bad public policy. Democrats are ready to lead America in a new direction by making college tuition deductible from taxes, expanding Pell grants, and cutting the costs of student loans. 

 

This week, when the House is focused on fiscal restraint and responsibility, the time is ripe to consider legislation to rein in government spending. Year by year, the amount of pork-barrel spending by the federal government is increasing. According to Citizens against Government Waste, the federal government spent $29 billion on 9,963 pork-barrel projects in Fiscal Year 2006, an increase of 6.3% from 2005, and an increase of over 900% since 1991.One way to reduce reckless spending provisions is with a presidential line item veto. I have co-sponsored the Legislative Line Item Veto Act of U.S. Rep. Paul Ryan (R-WI) because I firmly believe that it will hold lawmakers accountable for the spending proposals they introduce. Accountability and transparency of pork projects are crucial to successful spending reform, and the American people have a right to know where their hard-earned dollars are being spent.When Congress begins to expose pork projects for what they truly are, the problem of pork will take care if itself.

 

 

Over the years, the Health Center program, which assists low-income uninsured patients, has gained tremendous support from members of both sides of the aisle in Congress and the President - a claim that can be made about very few federal programs. As a nation, we have a long way to go before we locate a health center in every low-income county in this country. To ensure that these goals are met, it was crucial that we pass this bill to reauthorize the health center program, whose current authorization expires this year. Mr. Deal, Mr. Bilirakis and I have put together a compromise bill that would reauthorize the program through 2011, keeping intact the core elements of the program that have been critical to its success.

Wednesday the House Resources Committee, of which I am a member, will begin mark-up on the Deep Ocean Energy Resources (DOER) Act. While I'm pleased this bill will make us less dependent on foreign oil, I'm really excited the federal government is finally recognizing that Louisiana and other states that support offshore drilling deserve a fair share of the royalties.

Offshore drilling has created good-paying jobs for many Louisianans, but the state has also had to shoulder the burdens that result from supporting this industry, including an eroding coastline and the cost of infrastructure like ports and highways. Despite the fact that Louisiana has been a willing partner in facilitating our domestic energy production, we receive next to nothing of the $6-8 BILLION that flows into the federal treasury every year from royalties paid by companies drilling in the Gulf of Mexico.

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Even a small effort to improve the availability of E-85 fuel across the Nation is a step in the right direction. There are millions of vehicles on the road today capable of operating on alternative fuels, however, we need to make the fuel more readily available for consumers. This is an issue of great importance, and I hope it will be addressed in an aggressive and comprehensive manner in the near future.

This week the Senate is expected to take up the Defense Authorization bill, S. 2766. However, because there is no requirement in the Senate that amendments be germane to the underlying bill (remember, this is also the place that requires a super-majority -- 60 votes -- to cut off debate), Sen. Kennedy (D-MA) will reportedly be offering an amendment to raise the minimum wage. A few points:-- As a rule of thumb, the minimum wage almost always comes up in a year divisible by 2, i.e., an election year. It is more prevalent still in years divisible by 4. It is not an economic issue, but rather a political issue.-- You will read in almost any MSM commentary that the current minimum wage worker doesn't earn enough to pull a family of 4 out of poverty. That's correct. However, it's fair to ask, "How many minimum wage earners are the sole breadwinners of families of 4?" Answer: Not many.

-- You will hear that minimum wage workers "haven't gotten a raise" in X number of years. This is an old (albeit effective) rhetorical trick. It assumes the minimum wage population is a static universe. It is not. The minimum wage population tomorrow is different than the minimum wage population today, a dynamic group.

-- The minimum wage is meant to be a bottom rung, from which people can climb to higher earnings. Try this test: How many people that you know (including yourself) ever made the minimum wage? Almost all, no doubt. How many make it today? Probably very few, if any.

-- The fact is that raising the minimum wage costs jobs. It does every time it's raised. Those marginal jobs at the bottom rung just get eliminated.

-- For those who cry crocodile tears about helping the so-called "working poor" (most of whom make far in excess of the minimum wage), there is a direct correlation between skills and education levels and wages. If you want to lift people out of poverty, support efforts (as we do) to train workers and give them the skills they need to succeed in this 21st century workforce.

In any event, keep this primer handy as the debate plays out this week. You're not likely to hear these points in the media coverage of Sen. Kennedy's biennial effort.

 

 

Troubling revelations and a historically poor track record at the Department of Homeland Security means that the Homeland Security Committee must conduct aggressive oversight and hold the Department's leadership responsible for its problems. If we don't hold the DHS leadership to account for their failures, it will look like the Department is just doing bad business as usual. I hope that we can hear directly from Secretary Chertoff and Deputy Secretary Jackson in the weeks to come on these and other issues of concern at DHS.Our Committee must conduct aggressive oversight and hold Department leaders accountable for the waste, fraud, and abuse fiascos that permeate throughout the agency. We should do this before Congress recesses for a whole week for the 4th of July. America's security cannot wait. 

 

Employers simply can't absorb a 41 percent increase in their costs without decreasing the number of jobs or benefits they provide workers. As a result, unskilled and low-skilled workers will suffer by being among the first to be let go and the last to be hired.

Any wage increase that is imposed on a small business poses difficulties for that business owner and his or her employees. My amendment, which would raise the minimum wage progressively over the next 18 months by $1.10, recognizes this reality and provides a necessary measure of relief for those employers.

The Center for American Progress

Almas Sayeed, Research Fellow, and John Burton, Research Associate for Economic Policy
Yesterday Senator Ted Kennedy proposed a minimum wage amendment to the Department of Defense appropriations bill. The amendment calls for a $2.10 increase to the minimum wage over two years. As it stands, the debate has focused on the impact of raising the minimum wage on [employers and low-wage earners]. Less attention has been focused on the [recent explosion of the payday loan industry] and its impact on low-wage families. The high fee and exorbitant interest rates of the industry continue to trap many low-wage earners and their families. Raising the minimum wage could increase families’ ability to save—and put a dent in their debt.

It is inexcusable for Congress to continue raising its own wages while ignoring America’s minimum-wage workers. Since President Bush took office, the number of Americans living in poverty has increased by 5.4 million. The minimum wage is currently at its lowest level in 50 years, adjusting for inflation. To give some perspective, it now takes more than a full day of work for a minimum-wage worker to earn enough money to [fill up a tank of gas.]

Employers and low-wage earners link:

http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=1648601

Recent explosion of the payday loan industry link:

http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=1804545

Fill up a tank of gas link: http://www.americanprogress.org/site/apps/s/custom.asp?c=biJRJ8OVF&b=1706375