Political Action Update

Political Action Update

Vol. 06-04

February 10, 2006

Car title loans—sounds okay—probably something like giving the bank a lien on a new car until it’s paid off, right? Wrong! Car title loans are predatory lending schemes that target down-on-their-luck Iowans.

A person needing a loan, usually a few hundred bucks, goes to a car title lender. The borrower hands over their car title and an extra set of keys and immediately gets the loan—which is due in full in 15 days. Predictably, most borrowers are unable to pay the loan off in 15 days. Fees kick in, which, coupled with the 360% annual interest rate, in just a few months drive the balance owed to amounts that quickly double or triple the amount borrowed. Since one missed payment is grounds for repossession, often the car title lender drives away with the borrowers car. Over 1,600 Iowans have lost their cars to car title lenders.

Twenty-seven states have passed laws to make car title loans illegal or to place limits on the rate of interest that can be charged. In 2005, the Iowa Senate, on a unanimous vote, passed a bill setting the maximum interest rate on car title loans at 21%. The bill died in the Iowa House.

This year, Speaker Christopher Rants (R-Sioux City), who controls which bills are debated in the House, has said that restrictions on car title loans are not needed. Coincidentally, Rod Aycox, the owner of car title lender, LoanMax, gave Speaker Rants a $500 contribution in 2005. Another $40,000 was contributed to a political action organization with ties to Speaker Rants.

Call your legislators. Tell them failure to take action on this issue is unacceptable and immoral. Representatives can be reached by calling: 515-281-3221. Senators can be reached by calling: 515-281-3371.

To contact a legislator by e-mail send your message to: firstname.lastname@legis.state.ia.us.

To contact your legislators by mail write:

The Honorable _____________________

(State Senator / State Representative)

Statehouse

Des Moines, IA 50309

The Honorable __________________

Statehouse

Des Moines, IA 50319

Dear _____________________________:

I am writing to urge you to fight to bring the bill limiting interest rates on car title loans to a vote and to then vote for the bill.

Iowa does not need businesses who gouge by charging 360% interest rates to desperate borrowers. Failure to take action on this issue is unacceptable and immoral.

I, my family, my neighbors and co-workers will be watching this issue this session. Please let me know where you stand on this important issue.

Sincerely,

Sample Message to Your Legislator

Stewart Calls on Representatives to Pass Car Title Bill

State Senator Roger Stewart (D-Preston) describes car title lenders as, “financial parasites that prey upon individuals and families in financial distress.”

Stewart concedes, “That’s strong language—but it accurately describes these storefront operations that lend money at more than 300% interest.”

Stewart said, “Our laws should regulate consumer transactions to make sure that they are reasonable. I ask that [citizens] thank your state senator and encourage your state representative to fight for a vote on the [car title loan] measure.”

FY2007 Bush Budget Again Cuts Programs for Families To Fund Tax Cuts for the Wealthy

President Bush has presented Congress with a Fiscal Year 2007 budget that will slash $65 billion from health care, education, job training, low-income, food, child care and other domestic programs that help families. The cuts are being proposed in order to help pay for making permanent the Bush tax cuts for the wealthy.

Medicare, the federal health insurance program for the nation’s elderly, is taking the biggest hit, with Bush proposing to slash the program by $36 billion. Seniors would end up paying more for hospitals, doctors and other medical needs.

Bush also seeks to cut Medicaid spending for low-income children, parents, seniors and people with disabilities by $17.6 billion over 10 years.

And even as families mourn the deaths of 18 U.S. miners in the past month, the Bush budget underfunds worker health and safety programs. Although the Mine Safety and Health Administration (MSHA) funding rose slightly (1.4 percent) since last year, the coal enforcement budget is down 10 percent in real terms since 2001. Total MSHA full-time staff is down from 2,357 in 2001 to 2,136 in this budget.

Funding for the Occupational Safety and Health Administration (OSHA) remained flat compared with last year and is down 3 percent since 2001. The number of full-time OSHA employees is down from 2,370 in 2001 to 2,173 in this budget.

During his State of the Union address President Bush called for better training and education to ensure America’s workers can compete in the global economy, yet his budget would cut some $3.1 billion from education programs. The budget also eliminates 42 programs in the U.S. Department of Education, including school technology grants, vocational programs and parent resource centers.

As the trade deficit reaches record levels—the deficit for 2005 is expected to top $700 billion—the President is proposing cuts in the Trade Adjustment Assistance program for workers who have lost their jobs.

Iowa Senator Tom Harkin responded to Bush’s proposed budget by saying, “A budget is a moral document, and the President’s budget flunks the most basic moral test. It calls for literally hundreds of billions in additional tax cuts, with the lion’s share going to those making more than $1 million a year. And it calls for deep cuts to programs that our most vulnerable citizens depend on for their very survival.”

Bush’s 2007 budget proposals were offered just days after Congress passed 2006 budget legislation that cut $40 billion from Medicaid, Medicare and other programs benefiting American families (see below).

The ‘06 Budget—Spending Cuts For Families, Tax Cuts For the Wealthy

In a 216–214 vote, U.S. House Republican leaders, backed by the Bush administration, muscled through a package of nearly $40 billion in spending cuts on Feb. 1, slashing programs vital to working families, especially low-income Americans and those trying to pay for college. The cuts will slash health care funding for the poor and child support enforcement funds while taking $12.7 billion from the federal student loan program, the largest cut in the program’s history. Iowa Representatives King, Latham and Nussle voted for the bill. Representatives Boswell and Leach voted No. Iowa’s Senators split, with Grassley supporting the measure and Harkin voting No.

The Bush administration’s next step is already planned—$70 billion in tax cuts, mostly for the rich, to come up for a full congressional vote in late February or early March.

Bills of Interest….

HF 2121 HOME SCHOOLING TAX CREDIT* Creates a home schooling tax credit for 25% of the first $1,000 spent on tuition or textbooks per K-12 child. IFL opposes.

HF 2124 ENGLISH AS A SECOND LANGUAGE FUNDING Appropriates $100,000 to community colleges for ESL programs for adults and the New Iowans Program for families. IFL supports.

HF 2127 IOWA ENGLISH LANGUAGE Repeals the law making English the official language of Iowa. IFL supports.

HF 2131 HISTORIC PRESERVATION TAX CREDITS* (similar to HF 2206 & HF 2227) Increases historic preservation, cultural and entertainment district tax credits from $4 million to $17 million over 10 years. IFL opposes.

HF 2141 ENERGY EFFICIENT APPLIANCES* Exempts the sale of clothes washers, refrigerators and dishwashers which meet the federal Energy Star Program requirements from the sales tax. IFL opposes.

HF 2160 EARLY CHILDHOOD DEVELOPMENT TAX CREDIT* Increases the current $45,000 income participation limit to $60,000 over 3 years. IFL opposes.

HF 2171 LINE OF DUTY BENEFITS Presumes the heart attack or stroke death of a public safety provider under PORS, IPERS, or MFPRSI is a result of a traumatic personal injury and compensable as a line of duty death benefit if the death is within 24 hours of non-routine, stressful or strenuous physical activity. IFL supports.

HSB 541 PLUMBING STANDARDS Deletes references to the uniform code on minimum plumbing standards and calls for the adoption of national standards. IFL opposes.

HSB 597 CERTIFIED CAPITAL COMPANY CREDITS* Creates a credit that allows a certified capital company to invest in qualified companies in lieu of paying an insurance premium tax. IFL opposes.

HSB 607 WORKERS COMPENSATION CHANGES Adds penalties for violating a stay on collections proceedings while a case is in dispute. Also requires the insurer to pay workers’ compensation benefits, even if the insured has not reimbursed the insurer for any deductible. IFL supports.

HSB 610 TOUCH PLAY MORATORIUM Establishes a moratorium on the number of monitor vending machines authorized by the Iowa Lottery. IFL supports.

SF 2059 HEALTH CARE WHISTLE BLOWERS Establishes protections for health care workers who disclose information to a government agency or to law enforcement regarding a health care institution that failed to take timely corrective action. IFL supports.

SF 2077 SOLAR EQUIPMENT EXEMPTION* Creates a sales tax exemption for the purchase of solar energy equipment. IFL opposes.

SF 2079 CORN STOVE EXEMPTION* Exempts the sale of stoves that burn field corn from the sales tax. IFL opposes.

SF 2092 E-85 TAX EXEMPTION* Exempts from the state use tax cars designed to run on E-85 gasoline and hybrid vehicles which are defined as vehicles propelled by a combination of an electric motor and an internal combustion engine. IFL opposes.

*Iowa Federation of Labor, AFL-CIO tax policy is based on three principles: fairness, equity, and adequacy. Due to funding shortages bills offering tax cuts, credits and/or exemptions fail the adequacy test. Some may be unfair or inequitable as well.

Union Activists Fight Wal-Mart in Iowa City

Two labor union activists trying to stop Iowa City from selling and re-zoning city-owned land to Wal-Mart for a Supercenter will have their day in Johnson County District Court on Valentine's Day and on February 23rd. The co-plaintiffs in the case are Gary Sanders, AFT 716, and Richard Byers, AFSCME 3012. Both are delegates to the Iowa City Federation of Labor, which has contributed $750 for their legal expenses.

Sanders and Byers, along with members of other unions, environmentalists, small business owners and other interested citizens formed Iowa City Stop Wal-Mart in March, 2005 in response to the City of Iowa City entering into an agreement to sell Wal-Mart 21.7 acres of city-owned land for a Wal-Mart Supercenter store. Before the sale could be finalized the land had to be rezoned. They fought this at city council meetings, and after the council ignored the testimony of many people at public hearings, they filed two lawsuits last summer: 1) against the city's Zoning Board of Adjustment, and 2) against the City Council. The suit against the Board of Adjustment goes to trial in Johnson County District Court on February 14, and the suit against the City Council goes to trial on Feb. 23. For more information go to their website- www.iowacitystopwalmart.com . Donations are still needed to help pay legal expenses. Send donations to: Gary Sanders, American Federation of Teachers, chairman, Iowa City Stop Wal-Mart, 831 Maggard , Iowa City IA 52240. Phone: 319-337-7739.

BLOG IT

In late February, the AFL-CIO will expand its communications outreach with a unique news blog for working families, AFL-CIO Now. The blog will include frequent daily updates on economic, legislative, political, organizing and other news key to working families. AFL-CIO Now will replace the weekly Work in Progress (WiP). Those who currently receive WiP by e-mail will automatically get hot topic updates e-mailed to them. There will no longer be any deliveries by fax. If you currently receive WiP by fax and would like to receive the new blog update by e-mail, please go to www.unionvoice.org/wfean/blogsignup.html with your request.

Labor Center

THE UNIVERSITY OF IOWA

In cooperation with the Iowa Federation of Labor, AFL-CIO presents a conference for union members.

Arbitration

A three-day arbitration program for union officers, stewards, representatives, and interested union members (no prior arbitration experience necessary). Topics include:

Basic arbitration procedures

Preparing a case for arbitration: research techniques, interviewing witnesses, outlining the case and formulating arguments

Direct and cross examination of witnesses: basic skills and techniques used in examining witnesses in arbitration

Discipline and contract grievances: understanding burdens of proof, the just cause standard and how to win a contract-based grievance arbitration

Representing injured or ill workers in arbitration: unions strategies to defend workers who have lost their jobs due to an injury or illness

Mock hearing: all participants will take pat in a mock arbitration hearing before an arbitrator

WHEN: Wednesday - Friday, April 5 - 7, 2006

WHERE: Sheraton Hotel, Downtown Iowa City (210 South Dubuque Street)

TIME:
Sign-in from 8:30 a.m. to 9:00 a.m. on April 5. Program ends at 3:45 p.m. on April 7

COST: $200 per person (does not include meals or housing, see below)

DEADLINE: Please Register by March 5, 2006

To register:

by phone - (319) 335-4146
by FAX - (319) 335-4464
by e-mail - www.uiowa.edu/~laborctr

or by e-mail at www.continuetolearn.uiowa.edu/laborctr

Housing Policy: You will need to reserve and pay for your own housing directly with the Sheraton Hotel at (319) 337-4058. A block of rooms is being held under “Arbitration” until March 5, at a rate of $83 per night, plus taxes.

Iowa Federation of Labor, AFL-CIO

Legislative Hospitality

Monday Evenings

5:00 - 7:00

Machinists Hall

2000 Walker Street

Iowa Federation of Labor, AFL-CIO

Lobbyist Meeting

10:30 Monday Morning

During the Legislative Session

2000 Walker Street

Des Moines, Iowa