Legislative UpDate
 

Legislative Update

December 9, 2011

 

NATIONAL ACTIVITY… The big issues now for vocational rehabilitation and the people with disabilities we serve are:

-          VR and disability program funding for FFY-2012 (current year) and beyond;

-          Reauthorization of the Workforce Investment Act (WIA) which could mean significant changes for VR programs; and

-          Whether the temporary payroll tax reduction and unemployment benefit extension will continue and whether a scheduled reduction in provider fees under Medicare will be prevented.

 

At present all these issues are subject to Congressional negotiations, and the news we receive on them can quickly change from one day to the next.  However, in the last few days there has been a surge of activity affecting several of these issues.

 

FFY-2012 Appropriations:  Most federal appropriations bills for FFY-2012 (which began October 1, 2011) have not yet been finalized by Congress.  Federally funded agencies are currently operating under a Continuing Resolution that is scheduled to expire on December 18th.  Congress is scrambling to reach agreement on an omnibus bill to combine FFY-2012 funding for many agencies into one package.  Apparently the Labor-Health and Human Services-Education appropriation, which includes VR and many other disability programs, remains a major area of disagreement between the parties in Congress.  So even if agreement is reached on most federal department appropriation bills, VR and other Labor-HHS-Ed programs could still be funded through another Continuing Resolution.  This usually means that level funding is extended for a specific period of time, possibly until the end of the current fiscal year.  It will be several more days before we know how VR funding may be treated for the rest of the current fiscal year. 

 

Future funding for VR:  Since the Congressional super-committee failed to reach agreement on a way to reduce the federal deficit by $1.2 trillion or more over the next 10 years, we are now faced with the alternative plan that means significant budget cuts for most domestic programs and for defense, beginning in 2013.  Whether or not the 2013 round of cuts stays fixed as planned, VR and other disability programs are likely to be vulnerable to some funding impact as long as huge federal deficits remain a problem.

 

Workforce Investment and VR Reauthorization:  Yesterday, December 8th, two Workforce Investment Act (WIA) bills were introduced in the U.S. House, bringing the total of House WIA bills to three.  On the Senate side, the Senate Committee on Health, Education, Labor and Pensions (HELP) has developed a draft WIA reauthorization bill that has not yet been formally introduced.  The House bills are:

-          H.R. 3610 (Virginia Foxx, R-NC).  Streamlining workforce Development Programs Act.  This bill could consolidate many workforce programs, basing its approach on findings from a GAO report issues earlier this year.  Programs would be merged into four formula funding groups. 

-          H.R. 3611 (Joe Heck, R-NV).  Local Job Opportunities and Business Success (Local JOBS) Act.  The bill would require that two-thirds of Workforce Investment Board members represent business.  It would also remove the mandatory partners from Workforce boards.   Local Workforce boards would have to set aside a specific amount of their funding for training.

-          H.R. 2295 (Buck McKeon, R-CA).  This bill downgrades the RSA Commissioner from a Presidential appointment to a director position selected by the Secretary of Education.  It defines “transition expansion year” as the first year VR receives an increase in funding of $100 million and all years thereafter.  In transition expansion years VR agencies must reserve part of their 110 funds to use to expand transition services.  Greater emphasis on Transition planning would be required.  More common performance measures and data reporting among all WIA programs would be required.  The bill has a special provision that allows states to submit a plan to consolidate many of their Workforce programs and merge their funding.   Under the bill,  “mandatory partners” like VR agencies would send a piece of their funding to the Governor for allocation to One-Stop Centers to pay for infrastructure.

-          HELP Committee Draft.  This Draft would blend VR more closely into the Workforce system.  Throughout the bill there is an emphasis on further aligning the core WIA programs, which include VR.  A common or Unified state plan would be required, as well as common performance measures and data reporting.  VR would need to use many of the performance measures used by the general Workforce system.  There is also a strong focus on more intensive service to Transition youth who may be age 14-24, without added funding supplied for this purpose.  For supported employment clients, VR would be required to provide extended services for up to 24 months (up from the current 18 months) and up to four years for some youth.  The Senate draft emphasizes the development of business relationships and employment options, and stresses creation of career exploration and work experience options for youth. 

 

Together, these bills contain a variety of changes that could be either positive or problematic for the VR program and the people it serves.   One or a combination of these bills could begin to move soon after the new year begins.  The focal point in the House will be the Committee on Education and the Workforce (http://edworkforce.house.gov/) and specifically the Subcommittee on Higher Education and Workforce Training (http://edworkforce.house.gov/Committee/hewt.htm).  In the Senate , the HELP Committee (http://help.senate.gov/) will take the lead role.

 

Payroll tax, unemployment and Medicare provider pay:   Although both parties in Congress agree they want to do something to extend the current temporary payroll tax reduction, keep unemployment benefits in place for those who need them, and prevent a scheduled drop in Medicare pay for doctors, no agreement on details has yet been reached.  There are disagreements on the extend of a payroll tax cut to approve, how it should be paid for, the duration and amount of unemployment benefits to authorize, and the sometimes unrelated policy provisions favored by one party and opposed by the other.  The National Journal reports that today Republicans filed a three-part bill to extend the current payroll tax rate for one year, continue unemployment benefits at some level, and prevent a scheduled cut in Medicare physician pay.  Action could occur on the bill during the week of December 12th.  It is uncertain whether this particular package can gain enough support from either party to pass the House.

 

Extension of the current temporary payroll tax gives working people with disabilities more spending capacity for another year, but also reduces their contributions into Social Security and Medicare funds.  Extension of federal unemployment assistance will impact individuals with disabilities who have been especially vulnerable to job loss during the economic downturn.  Preventing Medicare pay cuts for physicians will have a major impact on individuals with disabilities who rely on Medicare and would be harmed if doctors refuse to treat Medicare patients due to cuts in reimbursement.  The existing schedule of Medicare provider fee reductions has been a perennial problem.  Each year Congress typically acts to prevent scheduled fee reductions, but a permanent solution has not been achievable.   

 

 

Jean Jones

DVR/DVS Legislative Informatin Rep.

Department of Rehabilitation Services

Office Phone:  405-951-3488

Email:  jjones@okdrs.gov  

 

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