E-Newsletter - November 2008
Following his work to help pass the economic rescue bill last month, Congressman Sestak remained focused on his constituents’ concerns about the economy. The Congressman urged the Attorney General to ensure a thorough investigation of those responsible for the fiscal crisis on Wall Street that has severely impacted his constituents, and wrote to Secretary Paulson and Speaker Pelosi to call for the Department of Treasury and Congressional leadership to take necessary steps to stabilize the economy.. Furthermore, he took part in a program that he initiated in partnership with Boeing to help local businesses win contracts, and met with leaders in local transportation about investments that can best stimulate the economy. In addition, Congressman Sestak continued to assume a lead role in the effort to halt the FAA’s harmful and flawed policies and commemorated Veterans Day with a full weekend of events recognizing local men and women who served our country.
*For the most complete and up-to-date information on Congressman Sestak’s work in Washington and in the 7th Congressional District, please visit http://sestak.house.gov
Addressing Concerns about the Economy
Demanding proper use of taxpayer resources: As part of his diligence in ensuring the taxpayer dollars allocated through the Emergency Economic Stabilization Act (EESA) are effectively used, the Congressman recently has taken a number of actions to urge much more effective and prompt implementation of the bill’s accountability, transparency and oversight measures.
First, in October, the Congress took the first step in passing the Emergency Economic Stabilization Act. The bill was passed to address the lending freeze and to ensure more Americans do not face the unavailability of affordable loans. The passage of this bill was necessary, but its implementation has not been sufficient. Congressman Sestak has written twice to Secretary of the Treasury Paulson to express his concern that the implementation of the bill is not consistent with the intent of the authorization. He believes that the enacted bill gave authority to the Treasury to purchase troubled assets and to replenish bank capital, and he believes strongly that the solution must address both of these issues. Rather, Secretary Paulson has chosen to implement principally a plan to inject capital into the banks through the purchase of preference shares. Congressman Sestak believes much more emphasis needs to be placed upon removing the toxic mortgage securities from banks, enhancing lending by placing a value on the banks’ mortgage securities through auctions and government purchases. For example, a portion of the revised plan for AIG includes expenditures to purchase $20 billion of its troubled mortgage securities.
In addition, the plan as rolled out by Treasury provided discretion to bank management on the continuation of dividends, executive compensation, and acquisitions – although that was never intended by the Congressional legislation. Together with a number of colleagues, Congressman Sestak has asked for the Treasury and bank regulators to put stringent restrictions on the use of taxpayer funds and to continue to address the issue of the troubled assets on bank balance sheets and the problem of foreclosures.
Finally, the Congressman also requested that Secretary Paulson put in place the detailed specific oversight required by the legislation throughout the implementation of the various government actions. That must include immediate actions to complete appointments to each of the positions and oversight boards specified within the legislation – including the Credit Review Committee and the confirmation of the independent Inspector General – as well as publication of the reports by the Government Accountability Office on a timely basis.
Second, the Congressman wrote to Speaker Nancy Pelosi, calling on the Democratic leadership to accelerate the assignments of positions on the Congressional Oversight Panel by working with Republican leaders to ensure all positions were filled, and the group could meet its requirements for supervising use of taxpayer funds. The final appointments were announced on Thursday 21 November, more than 6 weeks after the bill was originally passed by the House and Senate. Furthermore, Congressman Sestak also asked the Speaker to join him in demanding Secretary Paulson to follow the accountability measures specified in the stabilization bill.
Third, as he returned to Washington for a special session, the Congressman proposed codifying middle class tax relief and made clear that, in these difficult economic times, no one could afford a tax increase and that none should happen in the next year; rather, middle class tax cuts were crucial!
Holding Financial Institutions Accountable: With Congressional hearings underway to examine the root causes and effects of the turmoil in our economy, Congressman Sestak continued his proactive effort to return accountability to financial institutions with a letter to U.S. Attorney General Michael Mukasey. The correspondence sent by members of Congress to the head of the Department of Justice asks for an appropriate and thorough investigation into any and all financial institutions, corporations, and individuals suspected of criminal action relating to the current economic crisis. Referring to the seriousness with which the government must approach its obligation to the taxpayers, the letter advocates the use of greater resources to look into related criminal activity, such as mortgage fraud. “With the removal of necessary regulations from the financial industry, greed and selfishness of a small number of wealthy people affected millions of hardworking, law-abiding Americans,” said Congressman Sestak. “A thorough examination is required to ensure that we restore the proper oversight and transparency to Wall Street and that we punish to the fullest extent possible the people who have forced the government to intervene with hundreds of billions of dollars to protect low and middle-income Americans.”
Increasing availability of contracts for local businesses: Representatives from more than 50 area businesses gathered at Boeing’s Supplier Outreach Forum to gain access to contracts from the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Chuck Allen, the General Manger and Vice President of Rotorcraft Systems introduced Congressman Sestak as “the reason that we are here,” recalling a meeting at a local small business at which the Congressman discussed making contracts more available locally. For the last decade, projects unable to be completed by union workers were often outsourced to other areas of the country. After several meetings with Congressman Sestak, Boeing agreed to first offer the work to area businesses, such as a Radnor company, Airgas, that was recognized at the second of these forums for receiving a two-year contract extension. “As a major supplier of jobs to this District, Boeing has the capacity to play an integral role in sustaining this region’s small manufacturing businesses,” said Congressman Sestak, who is co-Chair of the Congressional Rotorcraft Caucus. “Boeing greatly impacts our national security not only by providing the quality equipment for our troops, but also by contributing to the economic security of my District.”
Creating jobs by investing in pressing long-term needs: Discussing economic issues with representatives from the Delaware County Transportation Management Association (DCTMA), Congressman Sestak emphasized his support for a second economic stimulus package, a version of which he helped the House pass on September 26. The Congressman stressed the potential for creating jobs and easing his constituents’ financial burden through investments in infrastructure and mass transit. For instance, the stimulus legislation passed last month includes $12.8 billion for the nation’s aging highways and bridges to improve safety and reduce traffic congestion; $3.6 billion to purchase buses and equipment needed to expand public transportation and to make improvements to facilities; and $1 billion meets growing demand for public transportation due to higher gas prices while reducing American gasoline consumption. “Our nation’s transportation infrastructure requires many upgrades and rising fuel costs have put more stress on public transportation,” said Congressman Sestak. “Addressing these two issues can create jobs for the more than 600,000 Americans who lost theirs this year and reduce costs for the many Americans relying more and more on public transportation.”
For a more comprehensive review of Congressman Sestak’s actions and priorities for improving the nation’s economic condition, please visit this press release.
Sending a strong message about the FAA’s newest inadequate plan:
Congressman Sestak spoke out at a hearing in Tinicum and submitted public comments to the Federal Aviation Administration (FAA) that offered a clear and candid rebuke of the agency’s plan to tear down homes and businesses in Tinicum to add a runway to Philadelphia International Airport (PHL). The Congressman detailed specific faults in the way the FAA came to its conclusions in its Capacity Enhancement Plan (CEP). (The full text of the Congressman’s comments is available upon request.) To add an additional runway, the FAA would remove 70 homes and 80 businesses and would require the UPS facility, an important part of the area’s economy, to relocate.
“Our national and regional transportation infrastructure require dramatic improvement if we are to prosper in the increasingly competitive global economy,” said Congressman Sestak. “Innumerable roads, bridges, seaports, railroads and airways urgently need attention. A comprehensive and innovative effort is required to correct this situation and I will continue to work with other members of Congress and all elected officials at the state and local level to make the economic capacity of the Delaware Valley second to none. That said, given the many flaws of the CEP, I cannot support it. As with the FAA’s ill-conceived airspace redesign project, acceptable alternatives to the CEP have not been considered and the true costs have not been established. Unfortunately, instead of learning from the mistakes of the airspace redesign, the CEP repeats them.”
The Congressman’s comments clearly identify the shortcomings of FAA’s Draft Environmental Impact Statement (DEIS) for the plan. One key criticism is that the FAA “dictated a very limited range of alternative actions and stacked the deck against consideration of anything other than those selected for analysis in the DEIS.” Congressman Sestak further pointed out that methods used in the FAA’s analysis were dated and had been challenged by experts. In addition, the DEIS ignored significant research finding that children in particular were adversely impacted by aviation noise and, even after the GAO’s condemnation of the FAA for not determining the full cost of the air space redesign, the CEP DEIS included no cost breakdown of the chosen plan to increase capacity and did not estimate total costs.
Other measures taken by Congressman Sestak include: challenging the City of Philadelphia to meet obligations under its Noise Compatibility Program (NCP), which requires new noise mitigation procedures when flight patterns change as they have as a result of the air space redesign; supporting a legal challenge mounted by local governments against the air space redesign; and working in Washington to show Congress that it should not appropriate money for a project for which the FAA has not figured the cost.
Celebrating Veterans Day Weekend throughout the region:
Congressman Sestak has frequently stressed that recognizing and thanking our Veterans is not only simply the right thing to do, but also, as George Washington noted, is important for our future national security as it provides encouragement to young Americans considering participation in the military. Throughout the year, the Congressman visits VFW and American Legion halls and attends special ceremonies to show his appreciation for the selflessness of past and present service members. With the many opportunities offered on the occasion of Veterans Day Weekend, he took part in as many events as possible:
A Community Interfaith Tribute to Veterans where he delivered the keynote address at a ceremony that included the chance for Veterans to swap stories and share memories as well as a forum for them to voice their concerns to a team of trained counselors who, in turn, composed a document to convey those concerns to elected officials and relevant organizations.
The Annual Veterans’ Day Brunch for Jewish Veterans in Havertown where the Congressman was the featured speaker for the second consecutive year and spoke in great detail about the contributions of notable Jewish Veterans.
School ceremonies where young people of all ages honored local Veterans. The events included a breakfast at Scenic Hills Elementary School and the “Take a Vet to School” Programs at Ridley and Great Valley High Schools where he addressed the student body.
The DelCo Cruisers “Salute the Troops” fundraiser at Rose Tree Park in Media, where he spoke about the importance of providing the necessary tools to both our active personnel as well as our veterans.
A breakfast with the Boy Scouts of Chester County.
The Media Veterans Day Parade, which paid special recognition to female Vets. Rear Admiral (Ret.) Rosanne M. LeVitre, who served under Congressman Sestak, acted as the grand marshal.
The Bridgeport Ancient Order of the Hibernians’ Veterans Day ceremony, where he was the keynote speaker for the second consecutive year and spoke about the pledge Americans must take to ensure that Veterans past, present and future are honored by thought and action for the freedoms they and their families have earned for us all.
During many of his stops, the Congressman used a story to describe the special brotherhood which he and his fellow Veterans joined. In the tale, a businessman traveling in a foreign country was found guilty of spying and sentenced to execution. He was allowed to return to his homeland for 30 days by having a friend take his place in prison with the stipulation that the friend would be hanged if the man did not come back within the 30 day period. When a storm delayed the man’s return, it appeared the friend would be hung; however, the man arrived moments before the hanging, insisting that he was to be punished, not his friend, while the friend argued that it was too late, and to still hang him. The king, hearing the argument, asked to see them and allowed them to go free under the condition that he could be the “third friend.”
Special Notes:
Social Security Benefit Increases for 2009
Monthly Social Security and Supplemental Security Income benefits for more than 55 million Americans will increase 5.8 percent in 2009. The 5.8 percent increase is the largest since 1982.
Social Security and Supplemental Security Income benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year.
The 5.8 percent Cost-of-Living Adjustment (COLA) will begin with benefits that over 50 million Social Security beneficiaries receive in January 2009. Increased payments to more than 7 million Supplemental Security Income beneficiaries will begin on December 31.
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $106,800 from $102,000. Of the estimated 164 million workers who will pay Social Security taxes in 2009, about 11 million will pay higher taxes as a result of the increase in the taxable maximum.
Information about Medicare changes for 2009 can be found at www.Medicare.gov.
