Payroll Tax Cuts
The Jobs bill cuts the payroll tax paid by employers from 6.2% to 3.1% on the first $5 million of the company's wages. In addition, the bill would refund all payroll taxes on new workers and any increase in wages for current employees (capped at $50 million in new wages). It would also cut payroll taxes paid by employees from 4.2% to 3.1%.
Impact: A payroll tax cut for a small firm of 50 employees, earning an average of $50,000 each per year would save the firm a total of $80,000, which would be enough savings to hire another employee. The Congressional Budget Office has called small business payroll tax cuts one of the most effective job creators. All U.S. firms would receive a tax cut with relief focused on 98% of employers with less than $5 million in payroll.
Business IncentivesThe Jobs bill extends the 100% expensing provision that was signed into law in December of 2010. This allows businesses to deduct the full value of their investment (such as purchasing new equipment or expanding their facility). In addition, the President proposes initiatives within the Small Business Administration (SBA) and the Securities Exchange Commission to aid in compliance with and access to current programs that help business remain competitive. This includes a temporary increase in the SBAguaranteed surety bonds maximum individual award from $2 to $5 million (which allows small firms to bid on infrastructure projects.)
Impact: The Chamber of Commerce and more than 80 business groups have called for the extension of a 100% expensing provision. All provisions in the bill provide incentives to expand and create new business across the country and in the global marketplace.
Transportation InvestmentsThe Jobs bill outlays $50 billion in immediate investments for highway, rail, transit, and aviation. Included in the $50 billion is
- $27 billion for the highway system;
- $9 billion for transit, which contains $2 billion for intercity passenger rail;
- $2 billion to improve air safety, add capacity, and modernize airport infrastructure;
- $50 million in 2012 to improve employment and training opportunities for minorities, women, and those persons that are socially and economically disadvantaged workers in the transportation sector. In addition, $10 million will go to aid disadvantaged contractors to receive transportation related contracts;
- $4 billion for high-speed rail;
- $1 billion for NextGen Air Traffic Modernization;
- $5 billion for Transportation Infrastructure Generating Economic Recovery (TIGER) and Transportation Infrastructure Finance and Innovation Act (TIFIA) monies; and
- $10 billion for a National Infrastructure Bank that would fund projects of over $100 million and need to be of national or regional significance meeting the bank's standards. The bank would not be able to finance more than 50% of a project.
Impact: The infrastructure bank has been widely hailed by both parties, including both Sen. Hutchison (R-TX) and Sen. John Kerry (D-MA) as an important step to leveraging private investment and reformulating how transportation projects are funded.
Preventing LayoffsWith massive budget cuts at the local level, the Jobs bill will include $35 billion to prevent teacher and first responder layoffs ($30 billion goes toward teachers while $5 billion goes toward first responders).
Impact: It's estimated that 280,000 teachers could be laid off due to budget constraints. Lay-offs would likely increase class sizes, eliminate classes, and reduce services in schools across the nation.
School InfrastructureThe Jobs bill includes $25 billion to modernize public schools and $5 billion to modernize community colleges. Purposes include emergency repair and renovation projects, greening and energy efficiency upgrades, asbestos abatement and removal, and modernization efforts to build new science and computer labs, and school technology upgrades.
Impact: The current backlog of deferred maintenance in schools amounts to at least $270 billion in K-12 schools and $100 billion in community colleges. Schools spend over $6 billion on their energy bills, more than computers and textbooks combined. The plan directs 40% of the funding toward the 100 highest need school districts.
Rehabilitating CommunitiesThis provision in the Jobs bill is based roughly on the Neighborhood Stabilization Program; it includes $15 billion to rehabilitate vacant and foreclosed homes and businesses, with $10 billion distributed through formula funding to states and $5 billion allocated through competitive grants.
Impact: The construction industry has lost more than 1.9 million jobs since the beginning of the recession. This program allows states and localities to rehabilitate/refurbish foreclosed homes and businesses. Previous efforts centered only on residential property.
Reforming Unemployment InsuranceThe Jobs bill attempts to target those who have been unemployed over the long term. The bill extends Unemployment Insurance (UI) again and provides additional job search assistance and access to training opportunities. Workers can also receive pro-rated UI to compensate for a reduction in work hours. The bill provides a tax credit for hiring long-term unemployed persons and special tax credits for veterans, longterm unemployed veterans, and wounded veterans.
Impact: This is the largest change to UI in more than 40 years. The proposal also calls for implementing a work-sharing program that is already successful in more than 20 states, including Maryland. For more information including direct impact on your state, please visit: http://www.whitehouse.gov/jobsact#overview
» Labor, Military and Veterans' Affairs
"Don't Ask, Don't Tell Repeal in Effect"On September 20th, the controversial "Don't Ask, Don't Tell" (DADT) repeal became effective. DADT was the official United States policy on gays serving in the military from December 21, 1993 to September 20, 2011. The policy prohibited military personnel from discriminating against or harassing closeted homosexual or bisexual service members or applicants, while barring openly gay, lesbian, or bisexual persons from military service. The policy prohibited people who "demonstrate a propensity or intent to engage in homosexual acts" from serving in the armed forces of the United States, because their presence "would create an unacceptable risk to the high standards of morale, good order and discipline, and unit cohesion that are the essence of military capability." The act prohibited any homosexual or bisexual person from disclosing his or her sexual orientation or from speaking about any homosexual relationships, including marriages or other familial attributes, while serving in the United States armed forces. The act specified that service members who disclose they are homosexual or engage in homosexual conduct should be separated (discharged), except when a service member's conduct was "for the purpose of avoiding or terminating military service" or when it "would not be in the best interest of the armed forces."
The "don't ask" part of the DADT policy specified that superiors should not initiate investigation of a serviceman or woman's orientation without witnessing disallowed behaviors, although credible evidence of homosexual behavior could be used to initiate an investigation. Unauthorized investigations and harassment of suspected servicemen and women led to an expansion of the policy to "don't ask, don't tell, don't pursue, don't harass."
A Congressional bill to repeal DADT was enacted in December 2010, specifying the policy would remain in place until the President, the Secretary of Defense, and the Chairman of the Joint Chiefs of Staff certified that repeal would not harm military readiness, followed by a 60-day waiting period. A July 6, 2011, ruling from a federal appeals court barred further enforcement of the US military's ban on openly gay service members. President Obama, Secretary of Defense Leon Panetta, and Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, sent certification to Congress on July 22, 2011, which set the end of DADT for September 20, 2011.
» Emergency Preparedness and Homeland Security
"Tightening Air Travel Security"The House Committee on Homeland Security approved a variety of transportation and border security bills in late September, including H. Res. 255, Resolution for Sharing of Passenger Name Record Data. Peter King (R-NY), committee chair of homeland security, introduced legislation that calls for the United States and the European Union to share passenger information on inbound international flights. A recommendation from the National Commission on Terrorist Attacks guided the continuation of H. Res. 225 due to its comprehensive approach of combining "terrorist travel intelligence, operations, and law enforcement" as a "strategy to intercept terrorists, find terrorist travel facilitators, and constrain terrorist mobility.'' The information has been used in multiple terrorist investigations leading to the arrest of Times Square bomber Faisal Shahzad as well as David Headley, a U.S. citizen who helped plan the 2008 terror attacks in Mumbai, India.
In an agreement set in 2007, both the E.U. and U.S. set guiding principles for information-sharing offered by airlines, which were used to monitor against watch lists. In light of E.U. efforts early on to limit the agreements, King affirmed that "the sharing of this vital PNR (Passenger Name Recognition) data has been a successful tool in our fight against terrorism, and weakening this tool would be detrimental to the security of both the United States and Europe."
"Increasing Border Enforcement"
The committee also passed H.R. 915, The Jamie Zapata Border Enforcement Security Task Force Act, introduced by Rep. Henry Cuellar (D-TX). This measure would allow for the creation of a task force aimed at improving border security efforts through coordination between local, state, and federal border protection agencies. The measure aims to protect the U.S. border "from trans-national crime, including violence associated with drug trafficking, arms smuggling, illegal alien trafficking, and kidnapping along and across the international borders of the United States."
Additionally, the committee amended H.R. 1299, The Secure Border Act of 2011, introduced by Rep. Candice Miller (R- MI), chair of the Subcommittee on Border and Maritime Security. This amended legislation calls for the Secretary of Homeland Security to formulate a plan that would "gain operational control of the border within five years." Miller stated that secure borders could only be obtained with clear control of borders and ports of entry, which Homeland Security Secretary Janet Napolitano deemed "archaic." The Department of Homeland Security is currently in the process of developing a new measure, but each measure is to be evaluated by Department of Energy National Laboratory to make certain it is "statistically valid."
FY2012
The Fiscal Year for the federal government begins October 1st. Yet, Congress's modus operandi has been to pass a series of Continuing Resolutions (CR), which typically keep the government funded at previous levels, until a full budget for that fiscal year can be passed containing the applicable increases and decreases in funding for the Departments and Agencies. The current CR provides a reduced overall spending level in line with the reductions set during the debt limit debate. The CR is set to expire on November 18th.
Also, included in the CR was $3.65 billion to provide disaster relief to states for massive flooding from the tropical storms and devastating tornados. Below is a list of some of federal funding from FEMA that impacted states can expect to receive to repair and rebuild.

Both the Senate and House Appropriations Committees have nearly completed their work on the twelve Appropriations Bills that fund the federal government. The House has passed five spending bills, while the Senate has passed one bill. Still, much work remains in reconciling House and Senate versions. And, the numbers are not ideal from a state perspective. The State and Local Law Enforcement Activities under the Department of Justice (DOJ), which funds programs such as Community Oriented Policing Services (COPS) and Byrne Justice Assistance Grants (JAG monies), will see major cuts: under the Senate proposal, cuts would be 17% and under the House proposal, cuts would be over 37% and end the COPS program entirely. The Community Development Block Grant would receive a small increase in the House version, while the Senate would cut the program by almost $500 million. Due to complications posed by the debt deal and political maneuvering moving into an election season, many expect the appropriation bills will not be worked out until December.
» Education
"Back-to-School Month Heats Up for the Elementary and Secondary Education Act"The Elementary and Secondary Education Act of 1965 (ESEA) gave states a framework to ensure equal access to public education for all students. For nearly a decade, elementary and secondary education has been governed by No Child Left Behind (NCLB) while maintaining the overarching goal of ESEA. Despite NCLB progress in setting education standards and increasing school accountability, a broad base of critics argue unintended consequences of "strict requirements" and "one-size-fits-all strategies" have prevented schools from closing the achievement gap and furthering school reform. They say this is because NCLB inadvertently encouraged states to lower academic standards by failing to fully recognize student growth. By setting unrealistic goals for universal proficiency by 2014, states were pushed into "dumbing down their definitions of proficiency."
According to Secretary of Education Arne Duncan, Congress has yet to put forth significant changes to NCLB, making it an ideal time to enact comprehensive education reform that aims to prepare students for both college and the workplace. He stressed the need to create accountability systems that more fully account for student growth as key components of ESEA flexibility.
While waiting for Congress to reauthorize ESEA, the Department of Education has offered flexibility to states and districts, supporting local efforts to transition into using standards and assessments based on college and career readiness, while creating systems of differentiated recognition, accountability, and support.
This new ESEA flexibility policy means states will be required to go beyond standardized tests and, instead, measure student growth, which in turn could encourage more critical thinking in the classroom. Supporters who have clamored for the policy believe flexibility alleviates the burden of a single standardized test that narrows curriculum, and that teachers will be able to focus on "a well-rounded curriculum." The policy allows states to use multiple measures for teacher evaluation, including principal observations, peer reviews, and student work.
In a Washington Examiner op-ed, House Education and the Workforce Committee Chairman John Kline (R-MN) stated he shares Secretary Duncan's sense of urgency, but feels the [flexibility] waivers could raise legal questions, and add layers of ambiguity with less transparency and "greater uncertainty for students, teachers, and state and local officials."
Chairman Kline has disputed President Obama's claim of Republicans not putting forth legislation that seeks to reform the current system. He maintains the House Education and Workforce Committee has offered several suggestions to assist schools in navigating bureaucratic hurdles. Of these, he touts proposals to eliminate some NCLB programs to allow for greater flexibility in spending NCLB's $20 billion. Proposals such as the A-PLUS program would allow states to "opt-out of the many NCLB programs and spend education dollars in ways calculated to best meet students' needs."
Secretary Duncan responded to Chairman Kline's criticism of the waivers by stating that the waiver policy supports "states and local innovation and reform," and enables them to "focus their attention on schools that most need it- the lowest performing, and those with the greatest achievement gaps."
» Energy, Transportation and Environment
"Surface Transportation and FAA Reauthorization"The Surface Transportation and Federal Aviation Administration Reauthorization are among the most vital pieces of legislation to our nation's infrastructure. In order for projects authorized in this legislation to continue and for federal employees to keep working, both of these programs must be authorized. Congress has delayed passing reauthorization of both programs. After allowing the Federal Aviation Administration to furlough its nonessential personnel for two weeks, Congress acted more swiftly to ensure essential operations were continued under extensions. This 22nd extension of the Federal Aviation Administration will keep the Administration operational until January 31, 2012 at current funding levels. For the Surface Transportation Bill, this 8th extension will ensure highways, bridges, and transit systems continue to be built across the country. This program is now extended until March 31, 2012, at the current funding levels.
» Business, Financial Services and Insurance & International Affairs
"Senate Passes Extension to Trade Adjustment Assistance Act"On September 22nd, the Senate passed an extension to the General System of Preferences and Trade Adjustment Assistance Act, which expired in February 2011. The legislation provides job training and other assistance to workers displaced by trade. The legislation authorizes $575 million for fiscal years 2012 and 2013 to ensure states have funding to provide long-term job training. The bill now goes to the House. Speaker John Boehner (R-Ohio) said his chamber would take up the measure within the coming weeks.
The Trade Adjustment Assistance (TAA) Program is a federal program established under the Trade Act of 1974 that provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. The TAA program offers a variety of benefits and reemployment services to help unemployed workers prepare for and obtain suitable employment. Workers may be eligible for training, job search and relocation allowances, income support, and other reemployment services.
The 2002 TAA law only covered manufacturing workers who lost jobs as a result of imports or if those jobs shifted to FTA partner countries. In 2009, as part of the Recovery Act, the TAA program was expanded through bipartisan efforts to increase training funding. It also expanded eligibility to include the service sector and farmers and to cover workers whose jobs had been moved anywhere offshore, not just to a FTA partner country. Finally, it expanded access to TAA's Health Coverage Tax Credit, which helps certified workers purchase private health insurance.
» Health and Human Services
"HHS Awards States Grants for Quality Improvement and Access to Primary Care"On September 29th, the U.S. Department of Health and Human Services (HHS) announced a series of initiatives aimed at helping over 900 community health centers and community-based organizations to enhance the quality and coordination of health care services across the nation. A total of $47 million, made available by the Affordable Care Act, was awarded to all states for improving quality and access to services for millions of Americans. The awards must also be used to support better primary care and behavioral health services for people with mental and substance abuse disorders.
Both the HHS Health Resources and Services Administration (HRSA) and the Substance Abuse and Mental Health Services Administration (SAMHSA) released awards in an effort to better coordinate care across the health care spectrum. HRSA will be releasing $32 million to 904 community health centers nationwide. These resources will provide assistance to existing health centers as they try to achieve recognition as a patient-centered medical home. Activities will include care planning, support for team-based models of service delivery, and system upgrades. SAMHSA announced $15 million in grants to support and promote better primary care and behavioral health services for individuals with mental and substance use disorders. These grants are funded by the Affordable Care Act's Prevention and Public Health Fund to improve health status by improving the coordination of healthcare services delivered in publicly funded community-based behavioral health settings, including community mental health centers and public health departments in cities across the nation.
For a list of grantees receiving Health Center Quality Improvement and Patient Centered Medical Home Supplemental Funding from HRSA please visit: http://www.hrsa.gov/about/news/2011tables/110929medicalhome.html
For a list of grantees receiving Primary and Behavioral Health Integration awards from
SAMHSA please visit http://www.hhs.gov/news/press/2011pres/09/samhsa_health_integration_awards.html
» What Happened in September?
- Ovarian Cancer Awareness Month
- Prostate Cancer Awareness Month
- Hispanic Heritage Month - Is the period from September 15 to October 15. September 15 is the anniversary of independence for five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, all of whom declared independence in 1821. In addition, Mexico, Chile and Belize celebrate their independence days on September 16, September 18, and September 21, respectively.
- Grandparent's Day - Observed the first Sunday after Labor Day to encourage us to tap the wisdom of grandparents.
- International Day of Peace (UN) - September 21
- Rosh Hashanah - Also referred to as the Jewish New Year and observed according to the lunar calendar, this holiday celebrates the anniversary of the creation of Adam and Eve. Many members of the Jewish faith use this time for personal reflection--seeking refinement and correction in their lives.