Wednesday, April 9, 2003

Avoiding airline bailouts and excessive CEO pay

By MAC COLLINS
Congressman

Airlines and bailouts

Passed by the House last Thursday, the House, with my support, passed a Fiscal Year 2003 Supplemental Appropriations Bill (H.R. 1559) by a final vote of 414­12. This Wartime Supplemental will provide critical funding to support the Department of Defense and our men and women in uniform in Operation Iraqi Freedom and the continued war on terrorism.

H.R. 1559 will also support continued Homeland Security needs, including additional grants to first responders, protection for our borders and port security, funding for successful counter-terrorism needs within the Department of Justice, additional resources for the Centers for Disease Control, and international economic assistance to our allies supporting Operation Iraqi Freedom.

During consideration of the Wartime Supplemental, there were several controversial amendments, including one that passed the House with my support, prohibiting funds for reconstruction efforts in Iraq from being used to procure goods or services from any corporation or business entity organized in France, Germany, Russia, or Syria, "the Coalition of the Unwilling."

Additionally, the Wartime Supplemental noted the unfunded mandates Congress has passed on to the airline industry in the Aviation and Transportation Security Act (Public Law 107-71), a bill which I originally opposed.

These unfunded security mandates have caused the airlines to spend millions of dollars, at a time when consumer confidence has fallen, and airline travel has not returned to the pre-Sept. 11 levels.

I am not in favor of a "bailout" for the industry in fact, I know that the marketplace will drive competition, and some airlines may not be successful as the market continues to remain very competitive. I do know that the cost of the security mandates required in P.L. 107-71, which now represent a public good, are clearly the responsibility of the federal government, and funding should be provided through the General Fund of the United States Treasury.

For several weeks now, I have made this argument to the President, the director of the Office of Management and Budget, Mitch Daniels, as well as the leadership in the House and Senate. I also introduced legislation (H.R. 1467) that would impose a two-year moratorium on the passenger security tax and the air carrier security fee, while properly reimbursing the airlines for the cost of security measures that are the responsibility of the Transportation Security Administration.

In addressing the concerns of corporate greed, I am pleased to see that the CEO of Delta Airlines has agreed to send a letter to all Delta employees announcing that he will take a $9.1 million reduction in compensation including a 25 percent pay cut and forfeiture of any incentive compensation or stock awards during 2003.

The previous action taken by the Delta Board of Directors to compensate Delta executives regarding bonuses and pensions was irresponsible. With the financial situation of the industry and the call by Delta for concessions and furloughs, this should have never happened.

The House bill provides language that no airline receiving funding in the bill may provide compensation to senior executives that exceeds the base pay and benefits that such executives received in 2002. I will continue to monitor how this language is addressed in the supplemental bill.

Cutting red tape for Medicare providers

On Wednesday, with my strong support, the House Committee on Ways and Means passed the Medicare Regulatory and Contracting Reform Act of 2003 (H.R. 810) in a 19 to 13 vote.

I have heard from doctors and other health care providers throughout Georgia regarding increased regulations and paperwork they are dealing with under Medicare. As a result, providers are spending increasing amounts of time filling out required forms and decreasing the amount of time they have to care for patients.

Instead of continuing to struggle with burdensome regulations and paperwork, some doctors are choosing to withdraw from the Medicare program altogether, forcing their senior patients to either find a new doctor or pay for their medical expenses out of their own pockets.

The Medicare Regulatory and Contracting Reform Act of 2003 would address these issues by decreasing the regulatory burden placed on providers by the Medicare program. H.R. 810 takes sensible steps to educate providers and clarify Medicare processes and provider rights. It also protects efforts to eliminate waste, fraud, and abuse in Medicare.

While much work remains to be done in improving Medicare, this legislation would respond to many of the concerns of providers and take an important first step by relieving providers of the current regulatory burden that prevents them from better attending to the needs of their patients.

Banking

On Tuesday, the House of Representatives passed the Business Checking Freedom Act of 2003 (H.R. 758) which would end a prohibition dating from the Depression era on the payment of interest on business checking accounts at banks and thrift institutions. It would also allow the Federal Reserve to pay interest on the cash reserves it holds for financial institutions.

This prohibition has been a competitive disadvantage for smaller banks and small businesses. Large banks have been able to get around the restriction through "sweeps" that move money from a company's non-interest-bearing checking account into an interest-bearing account and then back into the checking account. Smaller institutions, which often serve small businesses, often lack the technology to maintain sweep accounts.

H.R. 758 changes would be phased in over two years to allow banks time to adjust to the new rules. In the interim, banks would be permitted to increase the frequency of their sweeps between checking and interest-bearing accounts from six times a month to 24 times per month. H.R. 758 has been referred to the Senate Banking Committee for further consideration.

On Wednesday, the House of Representatives passed the Federal Deposit Insurance Reform Act of 2003 (H.R. 522) with my strong support by a vote of 411­11. H.R. 522 would increase the ceiling on federal deposit insurance coverage from $100,000 to $130,000 for each account at banks, thrift institutions, and credit unions, and will help smaller banks compete with larger banks.

It would also provide for future adjustments for inflation beginning in 2005, set a $260,000 coverage limit for retirement accounts, and give the Federal Deposit Insurance Corporation more leeway in setting premiums and reserve levels. H.R. 522 has been referred to the Senate Banking Committee for further consideration.

Military education relief

Also on March 31, the House passed H.R. 1412, the Higher Education Relief Opportunities for Students Act of 2003 - HEROES. H.R. 1412 grants the Secretary of Education the authority to provide relief to our young men and women whose education is interrupted by military mobilization.

This waiver authority addresses the need to assist students who are called up to active duty, those on active duty military being relocated, and those students and borrowers who may at some point become directly affected by unknown future military action.

The Secretary of Education will also assist reservists who leave their jobs and families to gain relief from student loan payments for a time, protect borrowers and their families from collection calls from lenders, and allow consecutive service requirements for loan forgiveness programs.

Blue and Gold Star banners

On March 31, the House of Representatives passed House Concurrent Resolution 109 which expresses the sense of Congress regarding the Blue and Gold Star Banner.

The Blue and Gold Star Banners were designed during the height of the First World War. The Banners quickly became the symbol for a family member serving the nation. Families began displaying these banners in their front windows with each Blue Star representing a family member serving in the Armed Services and a Gold Star in honor of a family member who has died in service to their country.

The legacy of the banner continued during the Second World War, Korean, Vietnam, and Persian Gulf Wars and other periods of conflict, as well as in times of peace. Families have displayed the Blue and Gold Star Banners to demonstrate the honor and pride felt for our service men and women and their sacrifices for freedom.

The display of a banner in the front window of a home shows a family's pride in their loved one and is a reminder that preserving freedom demands great sacrifice. House Concurrent Resolution 109 calls on all Americans to honor the men and women of the United States Armed Forces and their families.

It also encourages these families to proudly display the Blue Star Banner or, if their loved one has made the ultimate sacrifice, the Gold Star.

Finally, the resolution calls on the media to recognize the importance of the Blue and Gold Star Banners and their symbolism of the devotion, service, and sacrifice of the men and women of the United States Armed Forces. If a family of a service member would like to obtain a banner they can contact the American Legion at www.legion.org.

Tax breaks

On March 31, the Eighth Congressional District of Georgia hosted a series of economic forums with Under Secretary of Commerce Kathleen Cooper. Dr. Cooper and I met with business and community leaders in Atlanta, followed by a luncheon with members of the Columbus Chamber of Commerce and a public forum at Columbus Technical College. This was yet another opportunity to share the need for immediate tax relief for every American who pays taxes.

President Bush has offered a package of tax cuts to grow our economy. Those who oppose cutting unnecessary spending claim this tax plan will create large deficits and only benefit the rich. These forums were an opportunity to discuss the real benefits of enacting these proposals.

To grow the economy and create jobs, it is necessary to relieve the excessive burden placed on those who hire employees - namely small businesses. There are 23 million small businesses in the nation. If just one out of every 10 of those businesses were to create one job, there would be 2.3 million new jobs created.

In a time of layoffs, plant closings, and a downturn in the economy, this solution would create real and meaningful growth to our economy, restore consumer confidence, increase the amount of revenue coming into the U.S. Treasury, and be a real benefit to every American family who pay taxes.