Federal Affairs Update

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Overview

January 16, 2008 - The final weeks of the 1st session of the 110th Congress were extremely busy; a summary of legislative action, including details on the 2008 budget and newly adopted energy bill, is below.

Budget

Congress passed the 2008 budget in December. Although both chambers approved modest increases for several programs important to local communities, they eventually acquiesced to the president’s budget cap. Funding was not, however, cut back to the president's proposed spending level. Highlights include:

• $3.6 billion - Community Development Block Grant (CDBG) Program: $100 million less than 2007 but $600 million more than the president's request.

• $587 million - Community Oriented Policing Services (COPS) Program: $35 million more than last year but short of the $725 million originally approved by the House. The president proposed a 94-percent decrease.

• $40.2 billion - Federal Highway Program: $631 million more than the president's proposal. Airport-improvement grants were funded at $3.5 billion and an additional $1 billion will be available for bridge repairs and inspections. Federal transit programs are scheduled to receive $9.5 billion. The impact on Michigan is still being determined.

For additional 2008 budget details, click here.

Energy Block Grant

The new energy bill, passed and signed into law, authorizes a $10 billion Energy Efficiency and Conservation Block Grant program to assist cities, counties and states with innovative practices that improve energy efficiency. The provision was supported by the League, the NLC and local communities across the country. Although no money was appropriated for the 2008 fiscal year, the Department of Energy is developing a distribution formula and grant rules. Communities should be able to apply for funding by 2009 (some communities will receive funds directly from the federal government while others through their respective state).

Video Franchising

Comcast's decision to move public access, educational and government (PEG) channels to digital led to action at the state level but also in Washington. Last month, U.S. Rep. John Dingell (D-MI), chair of the House Energy and Commerce Committee wrote Comcast officials to express his concern and remind them of their responsibility to air PEG channels like they do local broadcast channels. Click here to view Dingell's challenge and Comcast's response. Now, the House Subcommittee on Telecommunications and the Internet, chaired by U.S. Rep. Ed Markey (D-MA) has scheduled a hearing January 29, titled "Public, Educational, and Governmental (PEG) Services in the Digital TV Age." Local government, industry and PEG channel representatives will be invited to testify.

Second, the Sixth Circuit Court of Appeals will consider oral arguments February 6 related to the Federal Communications Commission (FCC) first order pre-empting local governments’ jurisdiction over the franchising process with respect to new entrants in a local cable market. In other words, local government organizations nationwide will have their day in court - recall the lawsuit filed by the League, National League of Cities, USCOM, NATOA and several other groups challenging the FCC order, first filed December 2006. Click here for more information.

Foreclosure Assistance

Both chambers passed versions of HR 1852/S 2338 that would allow homeowners to refinance out from high-interest sub-prime loans and into federally insured, lower-rate conventional loans, especially in high-cost housing areas.

Internet Taxes

The expiration of the Internet Tax Freedom Act this fall brought about several bills to make the Act permanent. After advocacy efforts by the League, NLC and other local government groups, Congress and the president rejected a permanent moratorium and extending the Act for another seven years while retaining the grandfather protections for those states and local governments that taxed "internet access" prior to 1998.

MML Federal Webpage

http://www.mml.org/legislative/bills/federal_bills.htm

Contact

Arnold Weinfeld, aweinfeld@mml.org

Contact State and Federal Affairs Division - 517.908.0305
Arnold Weinfeld, aweinfeld@mml.org
Summer Minnick, sminnick@mml.org
David Worthams, dworthams@mml.org
Andy Schor, aschor@mml.org
Samantha Jones, sjones@mml.org
Andrea Messinger, amessinger@mml.org
Nikole Brown, nbrown@mml.org