GOVERNMENT RELATIONS

November 2008 Legislative And Policy Update

Washington DC

Following the November 4 elections members of Congress returned to Capitol Hill the week of November 17. Newly elected members were ushered through the formal House orientation and current members arrived to complete the business of the 110th Congress. Little legislative business has been completed as of the writing of this report. An extension of unemployment benefits is the only legislation passed and sent to the president for signature. Hearings on the major U.S. automakers' request for federal financial support did not result in agreement on if, or what the federal government should do to help them avoid bankruptcy.

Meanwhile, President-elect Obama has assembled his White House economic advisory team to be led by Timothy Geitner, currently president of the NY Federal Reserve Bank, who will serve as Secretary of Treasury; and, Lawrence Summers, former Treasury Secretary in the Clinton White House, who will lead the National Economic Council. Mr. Obama has asked Congress to prepare, pass and have ready for his signature (on January 20, 2009) a second economic stimulus bill that would focus on federal investment in rebuilding the country's infrastructure, creating thousands of jobs. The legislation could include support for Detroit automakers.

1. Appropriations and Budget

Members are not addressing the nine (of 12) unfinished FY2009 appropriations measures individually, which by law, should have been enacted by October 1, 2008. Only the Departments of Defense, Veterans Affairs, and Homeland Security are operating on FY2009 budgets approved by Congress before they recessed in early October. The remaining nine were funded at their FY08 base levels through a Continuing Resolution (CR) that expires on March 6.

Reports from Capitol Hill near Thanksgiving indicate that the Democrats are working hard to complete work on the remaining appropriations measures with the goal of assembling them into an omnibus appropriations package that would be voted on in January. It also is rumored that Democrats expect to add $24.5 billion to the $992 billion to discretionary funding requested by President Bush that will be reflected in the omnibus. Meanwhile, Speaker Pelosi and her leadership team are negotiating with Blue Dog Democrats, who are fiscally conservative and supportive of the pay-go rule, to work out differences on spending issues.

2. Higher Education

The Chronicle of Higher Education published its annual survey of compensation for presidents and chancellors of colleges and universities. The report was picked up by most national media including the Wall Street Journal, Washington Post and New York Times. The report elicited a response from Senator Charles Grassley (R-IA), who has targeted college and university financial, endowment and presidential and athletic coaches' compensation practices as contributors to the rapidly rising undergraduate tuition at public and private institutions of higher learning. Senator Grassley released a statement that included the following quote—"In these hard economic times, apparently belt-tightening is for families and students, not university presidents." He added that perhaps "the salary increases can be justified" and that the new IRS form 990 would provide greater transparency of these and other university expenses for the public.

Education Department's database plan

Eight higher education associations have submitted comments to the Department of Education questioning its plan to create a new records system that would "allow massive amounts of irrelevant, unnecessary, and erroneous information about US citizens to be secretly compiled" and then disclosed to various outside entities without consent. The comments are in response to a notice in the October 16, 2008 issue of the Federal Register.

3. NASA: Hubble servicing mission

A major glitch with the Hubble Space Telescope again has delayed NASA's plans to send a space shuttle crew to overhaul the orbital observatory for the final time. Launch now is set for no earlier than May 2009 due to problems with a spare part. The agency was hoping to launch seven astronauts to Hubble aboard Shuttle Atlantis in October but delayed the mission to February after a serious hardware failure prevented the space telescope from relaying the bulk of its images and data to Earth. The most recent delay has been caused by problems with a spare data handling component designed to restore Hubble to full strength. Each Month Atlantis' Hubble servicing mission is delayed adds an extra $10 million in operating costs.

SOFIA

Three U.S. astronomers—David Neufeld of Johns Hopkins University, Mark Morris of UCLA, Paul Harvey of University of Colorado-Boulder - have been selected to participate in the first scientific observations conduced aboard NASA's Stratospheric Observatory for Infrared Astronomy (SOFIA), a Boeing 747SP jetliner equipped with a 2.5 meter telescope provided by the German space agency. If all goes well the selected astronomers will participate in SOFIA's so-called first light science flight in summer 2009. Following the first light observations, SOFIA will begin its basic science program in late 2009 with approximately 15 flights. NASA announced that it will solicit proposals for those flights in December 2008.

4. Odds and Ends: Health Information Technology legislation

House Speaker Nancy Pelosi (D-CA) reportedly plans to push for passage of a comprehensive health information technology bill early next year. The bill, which would encourage nationwide adoption of electronic medical records, would likely be a compromise between the two major health IT bills introduced in the House in 2008. Outgoing House Energy and Commerce Committee Chairman John Dingell (D-MI) and senior House Ways and Means Committee member Pete Stark (D-CA) each sponsored legislation. It is unclear whether Speaker Pelosi's bill would be stand alone legislation or move forward as part of a larger healthcare reform bill.

Visas

It has been reported that universities have noticed an increase again in delays in processing visa applications from foreign students. According to the U. S. State Department, the delays are due to an increase in the number of applications from overseas. In a post-election article in the U.K. newspaper The Guardian, the British government is beginning to tighten its visa application process just as the US mostly has ironed out initial problems with visa applications that developed after the September 11, 2001 attacks.

National Science Foundation report on doctorates

The NSF recently released data on U.S. doctoral degree awards for 2007. U.S. institutions awarded 31,801 science and engineering (S&E) doctorates in 2007, the highest number ever and the fifth consecutive annual increase—up 6.5 percent over 2006. Once again S&E doctorates to non-U.S. citizens grew faster than to those to U.S. citizens or permanent residents.

Comings and Goings

Federal Elections Recap

The November 4 election produced major changes in the composition of the U.S. Congress. Democrats will retain majorities in both chambers of Congress, gaining seats in the Senate. There will be 56 Democrats, 2 Independents (who caucus with Democrats) and 40 Republicans with two seats still undecided. In the House Democrats gained 19 seats for a total of 255 Democrats and 175 Republicans. Three contests are undecided with two of those determined by runoffs. Although Democrats made major gains they did not achieve a veto-proof majority in either chamber, which means that the 111th Congress must continue to work for bipartisan support of legislation.

The ripple effect of the 2008 elections still is being felt around Washington with changes affecting both Congressional leadership and the committee structures. Although House Minority Leader John Boehner (R-OH) is expected to maintain his leadership post, House Minority Whip Roy Blunt (R-MO) will not seek re-election and Chief Deputy Minority Whip Eric Cantor (R-VA) is expected to take his place. On the Democratic side of the aisle Rep. Henry Waxman (D-CA) defeated incumbent Rep. John Dingell (D-MI) for the chairmanship of the House Energy and Commerce Committee. The Committee has oversight of health policy and climate change, two critical issues that are expected to be priorities in 2009.

After serving on the Senate Appropriations Committee for 50 years, most recently as Chairman, Senator Robert Byrd (D-WV) has agreed to step down as the senior "cardinal" of the powerful Committee. Senator Daniel Inouye (D-HI) is expected to assume the chairmanship in January. That, in turn, may allow Senator Jay Rockefeller (D-WV) to take over Sen. Inouye's current chairmanship on the Commerce, Science and Transportation Committee, leaving Mr. Rockefeller's chairmanship of the Intelligence Committee to current Rules and Administration Chair Dianne Feinstein (D-CA).

Senator and vice-president elect Joe Biden (D-DE) will relinquish his chairmanship of the Foreign Relations Committee and Sen. John Kerry (D-MA) is expected to assume that role. Whether Sen. Joe Lieberman (I-CT), who campaigned on behalf of Sen. John McCain's presidency, will retain his chairmanship of the Homeland Security and Government Affairs Committee.

5. Ohio Federal Elections Results

U.S. Senate

Neither Senators George Voinovich-R or Sherrod Brown-D faced re-election in 2008. Senator Voinovich's second term concludes in 2010 and he is expected to seek a third term.

U. S. House of Representatives—9 Republicans/9 Democrats

Democrats picked up two seats which evenly splitd the Delegation by party affiliation for the next two years. State Senator John Boccieri (D) won the seat being vacated by Rep. Ralph Regula, who is retiring after 36 years in the House; and State Senator Steve Driehaus unseated seven term Republican incumbent Steve Chabot in Cincinnati. Republican state Senator Steve Stivers is expected to take the seat of Rep. Deborah Pryce (R) who also is retiring. As of this writing Mr. Stivers is expanding his lead over Democrat Mary Jo Kilroy in the closely contested 15th Congressional district race.

Rep. Marcy Kaptur (D-13) will be the dean of the Ohio delegation as she begins her 14th term in January. Other senior members of the delegation include Reps. John Boehner (R-8), Steve LaTourette (R-14) and Dennis Kucinich (D-10). Overall, the delegation is considered young and less influential than during the past 10 years. Democratic Representatives Tim Ryan and Betty Sutton are considered rising stars in the party. Watch for them to gain leadership opportunities under Speaker Nancy Pelosi and her House leadership team.

It is anticipated that a Republican member of the delegation may be appointed to the House Appropriations Committee filling one of the two Republican Committee vacancies from Ohio caused by the retirements of Reps. Dave Hobson and Ralph Regula. Reps. Patrick Tiberi from Columbus and Michael Turner from Dayton are rumored to possible candidates.

THE BUCKEYE STATE

Following the November 4 elections legislators returned to Columbus the week of November 10 for a lame-duck session. The 127th General Assembly is expected to wrap up its business by December 18.

1 Lame-Duck Session: Cuyahoga County government reform

An amendment to the FY2009-2010 Biennial Capital Budget Bill passed last spring created a task force to study restructuring Cuyahoga County government with an accompanying $200,000 appropriation to cover the cost of the study. The panel was required to submit its report to Governor Strickland the General Assembly by November 15, 2008.

The report, which was not supported by two of the nine members, calls for retaining the three-member board of commissioners, but one would be elected president of the board. Although commissioners currently elect a president, the role is "primarily ceremonial." Under the task force's recommendations, the board president would have the power to recommend: a) an annual budget; b) appointment of the county administrator and department directors; and, c) major transactions with outside entities. The president also would oversee and direct the administrator.

In response to the report state Senator Tim Grendell (R-Chesterland) said he hopes to introduce a legislative measure and attach it to other fast-moving legislation that would provide a different solution. Senator Grendell's approach would allow Cuyahoga County voters to expand the three-member board of commissioners to seven members. Five commissioners would represent different regions of the county and two would serve at-large. The board then would select a chairman and have the option of appointing by a supermajority the county recorder, treasurer, coroner, and engineer, who currently are elected positions.

2. K-12 Education

Governor Ted Strickland would like to increase state power over for-profit charter schools that remain exempt from State Board of Education oversight. The Governor's comments came several days after Senate President Bill Harris strongly stated that the Republican majority in the Senate would not support any proposals to limit charter schools and voucher programs.

The Governor also has stated publicly that he hopes to present a school funding plan to the legislature in early 2009. He indicated that the plan would incorporate ideas discussed in a series of forums on school funding that he is in process of holding throughout the state.

3. 128th General Assembly

The 128th Ohio General Assembly, which will convene in January, will be made up of one-third new members and Democrats will be the majority in the Ohio House after a 14-year run by Republicans. They are expected to hold a 53-46 advantage. Republicans will retain a 21-12 Senate majority, which they have enjoyed for the past several years. Rep. Armond Budish (D-Beachwood) has been chosen Speaker-elect by the Democratic caucus. He is the first House Speaker from Northeast Ohio in over 70 years, which is expected to benefit Cleveland and the region.

The Cuyahoga County Delegation

Ohio House

New members include Matt Patten, elected to replace the open seat created by Tom Patton, who was elected to the Ohio Senate, and Nan Baker, who defeated one-term incumbent Jennifer Brady.

Ohio Senate

State Reps. Bob Gibbs and Tom Patton were elected to seats held by Ron Amstutz and Bob Spada, respectively, who were term-limited and ineligible to run for a third term.

Majority and minority leadership teams have been elected in both chambers.

House Majority—Democrats

• Speaker—Rep. Armond Budish (D-Beachwood)
• President pro tempore—Rep. Matt Szollosi (D-Toledo)
• Majority Leader—Rep. Jennifer Garrison (D-Marietta)
• Asst. Majority Leader—Rep. Tracy Heard (D-Columbus)
• Majority Whip—Rep. Jay Goyal (D-Mansfield)
• Asst. Majority Whip—Rep. Allan Sayre (D-Dover)

House Minority—Republicans

• Minority Leader - William Batchelder (R-Medina)
• Assistant Minority Leader—Lou Blessing (R-Cincinnati)
• Minority Whip—John Adams (R-Sidney)
• Assistant Minority Whip—Rep.-Elect Kris Jordan (R-Powell)

Senate Majority—Republicans

• President—Bill Harris (R-Ashland)
• President pro tempore—Tom Niehaus (R-New Richmond)
• Majority Floor Leader—Keith Faber (R-Celina)
• Majority Whip—Mark Wagoner (R-Toledo)

Senate Minority—Democrats

• Minority Leader—Capri Cafaro (D-Hubbard)
• Assistant Minority Leader—Shirley Smith (D-Cleveland)
• Minority Whip—Ray Miller (D-Columbus)
• Assistant Minority Whip—Jason Wilson (D-Columbiana)

In related news, Speaker-elect Budish named A. J. Stokes as chief of staff for the majority caucus. Andy DiPalma, longtime legislative veteran who has served as minority chief of staff under Minority Leaders Joyce Beatty (D-Columbus) and Chris Redfern (D-Catawba Island), will serve as legislative director under Mr. Budish. Other House majority staff positions will be announced in the future.

4. Other States

Missouri

The state of Missouri urged a judge to dismiss a lawsuit that seeks to block funding of Missouri's Life Science Research Board. The Missouri Roundtable, which opposes embryonic stem cell research, filed suit earlier this year to halt spending of $21 million by the Board from the proceeds of a legal settlement between states and tobacco companies. According to an AP account, the state told the judge that no grants have been awarded yet and the issue is not yet ripe for court action. The judge did not rule immediately.

Michigan

On November 4 voters passed a proposal to loosen restrictions on embryonic stem cell research, which will now enable researchers in that state to use embryos left over from fertility treatments to create embryonic stem cell lines. Before passage, it was illegal in Michigan to donate an embryo to science or to destroy an embryo for research purposes.

Colorado

Voters defeated the proposed "Human Life Amendment" to the state Constitution, which would have defined a "person" to include "any human being from the moment of fertilization." Passage would have made all embryonic research subject to human subjects' regulations and the donations of embryos virtually impossible.

Colorado citizens also narrowly rejected a referendum that would have barred the use of race, gender, ethnicity and national origin in decision-making about university admissions, as well as hiring, recruitment, etc. in the state. Nebraska passed such a ban in this election. California, Washington State and Michigan previously have approved bans on considering race in admissions decisions by public colleges and universities.

Comings and Goings

Dr. Deborah Delisle, superintendent of Cleveland Hts.-University Hts. Schools, will become Ohio's State Superintendent of Education on December 1, 2008.

Locally

In special elections held on November 18 to fill the unexpired terms of the late Congresswoman Stephanie Tubbs Jones and Cleveland City Councilwoman Fannie Lewis, Marcia Fudge and T. J. Dow were elected respectively. Mr. Dow's victory was considered an upset in that Stephanie Howse, who had been appointed to the seat, was supported by Cleveland Council President Martin Sweeney.