Sen. Chuck Grassley of Iowa last month asked a White House official to account for the contradiction between a White House blog post and statements from the Secretary of the Treasury and other officials about the relationship of the Small Business Lending Fund, or SBLF, to the Troubled Asset Relief Program, or TARP.  Today, the Treasury Department responded.  The text of the Treasury Department's response is here.  The details of Grassley's original inquiry are available here.  Grassley made the following comment on today's response.

"With this response, the White House apparently didn't want to answer questions about the Small Business Lending Fund and is hiding behind the Treasury Department.  I wrote a letter to the White House deputy communications director asking questions regarding the statements she wrote about the Small Business Lending Fund.  Since she's a public servant whose salary is paid by the American people, making statements on a taxpayer-funded website that presents official White House positions, I expect direct answers.   It's misleading, at the very least, for the White House to have insisted that the Small Business Lending Fund and TARP have no relationship, even as the Treasury Department acknowledges that at least some banks will use the Small Business Lending Fund to repay their TARP loans."

Statement by U.S. Senator Chuck Grassley
Ranking Member of the Committee on the Judiciary
Wednesday, June 29, 2011

Balanced Budget Amendment to the Constitution
Tax Increases Not the Answer for Deficit Reduction

The federal budget deficit is 15 times bigger today than it was in 1997, the last time there was a vote in Congress over a balanced budget amendment to the Constitution.  It's time to bring it up again.

Voters sent a clear message in the last election that they want government spending reined in.  They know it's morally wrong to make the next generation pay the bills for the way we live today, and that the problem isn't that people are taxed too little but that Washington spends too much.  In fact, history tells us that an increase in taxes will only fuel more government spending.  Since World War II, Washington has spent $1.17 for every dollar in tax increases, so tax increases have proven to be a license for Congress to spend more money.

State-level requirements for balanced budgets work and serve an important purpose.  A balanced budget amendment to the U.S. Constitution is the kind of serious spending reform needed for the sake of America's fiscal well-being.

June 28 Teleconference, Report Release Will Detail How Cuts Could Cost Iowa Thousands of Jobs, More than a Billion Dollars in Lost Business Activity

Washington, D.C.–The Medicaid cuts in the House Republican budget, if implemented today, would have a devastating impact on the struggling economy of Iowa, putting thousands of jobs and more than a billion dollars in state business activity at risk.

On Tuesday, June 28, Senator Tom Harkin (D-IA) and Families USA, the national organization for health care consumers, will release a report titled "Jobs at Risk" that will detail how Medicaid cuts would damage Iowa's economy.

As the report makes clear, there is also a human toll of such cuts, affecting the health and well-being of low-income and middle-class families, children, seniors, and people with disabilities. This report, however, will look specifically at the economic effect of Medicaid cuts, spotlighting the potential impact of a 5 percent, 15 percent and 33 percent Medicaid cut on Iowa's economy.

Those percentages were chosen for the report, because the budget proposal adopted by the U.S. House of Representatives, sponsored by Rep. Paul Ryan (R-WI), calls for cuts in federal funding to current state Medicaid programs of 5 percent in 2013, 15 percent in 2014, and 33 percent in 2021.

A teleconference for Iowa media will be held on Tuesday, June 28, 2011, to discuss the new Families USA report.

WHAT:  
Teleconference and Release of Families USA Report "Jobs at Risk"

WHEN:  
Noon EDT, 11 a.m. CDT
Tuesday, June 28, 2011

HOW:   
Dial in toll-free: 877-780-3379
Confirmation code: 7301551

WHO:   
U.S. Sen. Tom Harkin (D-IA), Chairman, Health, Education, Labor and Pensions Committee
Ron Pollack, Executive Director, Families USA

America's prosperity hinges on our consumer-driven economy.  The economic recovery is slowed in part by tepid consumer confidence that adds to the reluctance by businesses to increase payroll, upgrade equipment and expand operations.  Decision-makers in the private sector are taking a wait-and-see approach due to uncertainty over the federal debt, tax, spending and regulatory policy.  The economic recovery could continue to languish if the federal government fails to rein in spending.

Even so, America's strength and resilience still rests largely within the indefatigable optimism that drives innovators, entrepreneurs, workers and immigrants to scale the ladder of prosperity.

Americans cherish freedoms of speech, press and religion.  U.S. capitalism encourages people from all walks of life to create wealth and achieve the rewards offered by free enterprise.  Bargain hunters would agree the two essential elements of a good buy are the same for a robust economy:  consumer choice and competition in the marketplace.

In the U.S. Senate, I use my legislative and oversight authority to work to strengthen the rights of property owners, taxpayers, consumers, pensioners, patients, and investors.

Consumers armed with accurate, timely information are able to make better decisions and minimize buyer's remorse.  Whether buying big-ticket items such as a car or home or looking for the best surgeon to perform a life-saving transplant, the most informed consumer is likelier to end up a satisfied customer at the end of the day.

I work to foster accountability and transparency in the public and private sectors.  This includes  efforts to advance reforms to the nation's pension laws aimed at preventing bad actors from promising more than they could deliver (remember the Enron scandal); strengthen consumer-friendly comparison tools for family members searching for a quality nursing home; and, let the sun shine in on the financial relationships between medical device makers, pharmaceutical companies, medical professionals and non-profits.

The federal government's system of checks and balances is meant to prevent overreach by the executive, legislative and judicial branches.  That's why I am a strong supporter of sunshine and whistleblower protection laws.  Representing Iowans in Washington, I also have worked to keep close tabs on taxpayer dollars.  Taxpayers deserve to get the most bang for their buck when their hard-earned money is used to build roads, advance medical research, strengthen national security, pay for the military and fund recovery efforts caused by natural disasters.

Transparency also can improve America's health care delivery system. Policymakers have long debated ways to improve quality and rein in the so-called spending curve of U.S. medicine.  On the Senate Finance Committee, I also channel efforts to improve effective medicine and patient safety by promoting better transparency between patients, health care providers, pharmaceutical companies and medical device manufacturers.

I have pressed the National Institutes of Health (NIH) to fully exercise its authority to achieve public disclosure between industry and the doctors who conduct $31.2 billion annually in federally sponsored medical research.  In response to what I exposed about the dramatic disparity between what a number of influential NIH-funded research physicians reported and what they received from pharmaceutical companies, the NIH drafted new guidelines for grant recipients to manage conflicts of interest.  A proposal has been waiting to be processed at the White House Office of Management and Budget since March.  The administration needs to move on this.  The NIH is in a pivotal position to help establish greater accountability in this area through disclosure.  Good stewardship of the tax dollars that back medical research requires it.

In addition, keeping consumers or medical providers in the dark about those with financial ties to medical device makers, as an example, does not help build trust or improve patient outcomes.

A patient having spinal surgery places trust in the doctor's experience and expertise.  The surgeon relies on the current medical literature regarding safety, complications and adverse affects of a medical device or drug when making an informed decision about risks and benefits for the patient.  Troubling reports indicate that severe side effects may have been unreported or under-reported by clinical investigators with financial ties to a bone-growth product they had reviewed.

A patient who is considering surgery has a right to know if his or her physician has a financial relationship with the medical device the doctor is suggesting.  Likewise, a physician using the product deserves to know if the medical professionals who researched and prepared the literature on it have financial ties or consulting arrangements with that company. Public disclosure documenting such financial ties will promote accountability within the industry and allow the public to draw its own conclusions.   Legislation that I co-authored, the Physician Payment Sunshine Act, was enacted into law last year.  It will compel pharmaceutical, biotechnology, medical device and medical supply companies to disclose payments to physicians to the public, starting March 31, 2013, for all payments in calendar year 2012.   That will increase payment transparency.

Transparency and accountability throughout the public and private sectors are standards of good governance that I will continue to champion.  Transparency fosters goodwill in the marketplace and buoys consumer confidence.  Just as American consumers have a right to know where their meat and vegetables are grown, they also have a right to know if their doctor has financial ties to a pharmaceutical company or medical device manufacturer, and their doctors have a right to know about the financial ties of leaders in their profession.

For generations, American consumers have rewarded big thinkers and innovators to out-think and out-innovate the competition. Protecting the public's right to know is as all-American as apple pie and fireworks on the Fourth of July.

Friday, June 24, 2011

Tax Predictability Sought to Encourage Expansion of Clean Energy Alternative, Sustain and Create Jobs

WASHINGTON, D.C. - U.S. Senators Chuck Grassley of Iowa and Maria Cantwell of Washington today introduced legislation to simplify and extend the tax incentive for domestic biodiesel production.  Their bipartisan bill would provide predictability to investors and producers so the United States can continue moving forward to displace imported fossil fuels with low carbon, renewable biodiesel.

In putting forward the Biodiesel Tax Incentive Reform and Extension Act of 2011, S.1277, Grassley and Cantwell said that the lack of certainty about the tax policy inhibits access to capital and could undermine the progress that the U.S. biodiesel industry has made to build the production capacity and infrastructure needed to displace imported petroleum diesel fuel with domestically produced, renewable, low-carbon biodiesel.

"Today's high gas and diesel prices are slowing our economic recovery and burdening families," said Cantwell. "For economic reasons, national security reasons, and environmental reasons, we must continue to invest in America's clean energy economy. Biodiesel is America's first advanced biofuel, it can be made from a variety of feedstocks, and is less polluting than today's petroleum-based diesel fuel.  This bipartisan bill is smart federal policy because it is helping launch a nascent, domestically-based industry, reforms an existing credit to make sure it supports American biodiesel producers, and provides the industry the certainty it needs to continue to grow."

"America is trying to kick its addiction to foreign oil, and biodiesel is part of the cure," said Grassley.  "The more we can encourage domestic production and meet demand, the better off we'll be economically, environmentally, and geopolitically.  This legislation simplifies the tax credit for producers.  It also gives investors predictability so they'll be more likely to put their money into biodiesel production.  And it's directly tied to jobs."  

The biodiesel tax incentive was first enacted in 2004.  Since then, it has helped encourage the production and use of biodiesel.  Production in the United States has increased from 25 million gallons in 2004 to 690 million gallons in 2009, before Congress allowed the tax credit to lapse at the end of 2009, which resulted in job loss throughout 2010.  The credit was restored retroactively in December 2010 through December 2011.

A study by Cardno ENTRIX, an international consulting firm that specializes in environment and natural resources economics, estimates that this year, domestic biodiesel production is expected to support more than 31,000 jobs and replace 800 million gallons of imported diesel fuel.  The same study estimates that with the appropriate federal framework, by 2015 biodiesel production will replace 1.9 billion gallons of imported diesel fuel, support more than 74,000 jobs, and generate $4 billion in income and approximately $7.3 billion in gross domestic product.  The study also found that if Congress does not enact the Cantwell-Grassley Biodiesel Tax Incentive Reform and Extension Act of 2011 and the biodiesel tax credit is allowed to expire at the end of 2011, consumers would be forced to spend an additional $6.6 billion for diesel fuel between 2012 and 2015.

Specifically, the Cantwell-Grassley measure would:

  • eliminate potential abuses and simplify administration of the incentive for both taxpayers and the Internal Revenue Service.  The bill changes the incentive from a blender credit to a production tax credit so that incentives are given for building the domestic production industry.   The change would focus the benefits of the credit on the production capacity of these cleaner, greener fuels rather than on the activity of just blending them with petroleum diesel. By focusing on the production of the 100 percent bio-based fuel, this bill will shut down, once and for all, any remaining opportunity for the abuse known as "splash and dash," in which oil companies add a few drops of biodiesel to their petroleum diesel just to qualify for the tax credit. 
  • provide the $1 per gallon tax credit for the production of biodiesel, renewable diesel and aviation jet fuel that complies with fuel standards and Clean Air Act requirements that define qualified fuels under current law.
  • increase the credit from $1 to $1.10 for the first 15 million gallons of biodiesel produced for small producers, those with an annual production capacity of less than 60 million gallons
  • simplify the definition of "biodiesel" to encourage production from any biomass-based feedstock or recycled oils and fats.
  • simplify the coordination between the income tax credit and the excise tax liability to tighten compliance and reduce administrative burdens on taxpayers.
  • extend this tax credit for five years, giving needed financial predictability so that more facilities can be brought online in the United States.

-30-

Washington, D.C. - Today, the leadership of the Populist Caucus applauded President Obama's decision to open the Strategic Petroleum Reserve. The president's decision comes almost a month after the Populist Caucus called on him to open the Reserve and bring relief to millions of Americans who are faced with sky-rocketing gas prices. 

Congressman Bruce Braley (IA-01), Chair of the Populist Caucus, said:

"As the Populist Caucus made clear last month, opening the Strategic Petroleum Reserve is a huge step towards bringing down gas prices and providing relief to millions of hard-working families that are struggling to make ends meet. I'm glad the President took this action. But we all know this is a temporary solution and more must be done to stop greedy oil speculators from driving up prices throughout the summer. That's why the Populist Caucus will continue to work to implement its "Gas Is Too Damn High" platform to bring down gas prices for middle class families and all Americans."

Congressman Peter DeFazio (OR-04), Vice Chair of the Populist Caucus, said:

"This is good news for American consumers and bad news for speculators on Wall Street. Over 70 cents per gallon of gas is a direct result of excessive Wall Street speculation. The release of this oil undermines speculative trading and brings some relief to middle class families at the pump. This is a good first step, but more must be done to stabilize prices and rein in speculators gaming the system."

Congresswoman Donna Edwards (MD-04), ViceChair of the Populist Caucus, said:

"I applaud President Obama's decision to open the Strategic Petroleum Reserve and relieve some of the financial burden caused by high gas prices. This is the first of three steps outlined by the Populist Caucus. Now, we must focus on ending greedy oil speculation and tax breaks for big oil companies. American families deserve to pay a fair price at the pump, and the Populist Caucus will continue to urge our Congressional colleagues and the President to join us in meeting this goal."

Congresswoman Rosa DeLauro (CT-03), Vice Chair of the Populist Caucus, said:

"I am very pleased with the President's decision to release some of oil held in our Strategic Petroleum Reserve (SPR). This move will help calm the markets by making it clear that we do not have a supply problem?and will help to curb the undue speculation that has been driving the price of oil higher and higher. With the Republican budget cuts to the Commodity FuturesTrading Commission (CFTC), which could regulate unfair speculation if fully funded, the President's action is critical. Releasing oil from the SPR will help to protect American consumers at the pump, and I will continue to work with mycolleagues and the President to lower the cost of gas."

Congresswoman Betty Sutton (OH-13), Vice Chair of the Populist Caucus, said:

"No family should have to choose between filling up their tank or putting food on the table. I applaud President Obama for taking this bold action that will ease the burden facing Ohio families and help Ohio businesses put people back to work.

###

Washington, D.C. - Today, Congressman Bruce Braley (IA-01) released the following statement on the potential breakdown in budget talks between Congress and the White House:

"Last November, Americans spoke loud and clear: they wanted Congress to work with the President to create jobs, reduce the deficit and grow our economy. Now that Republicans are in control of the House, it's time for them to show leadership on these issues and work with the President and theSenate to get this done. Today, I was very disappointed to hear that Eric Cantor is dropping out of the budget talks and I sincerely hope my Republican colleagues in the House will find a way to lead on this issue. We can't afford to put our veterans, our seniors and our entire economy in jeopardy because a few members of Congress don't want to do the work they were sent here to do."

###

SPRINGFIELD - June 22, 2011. Governor Pat Quinn today released a statement regarding the passage of the Illinois Jobs Now!  capital program re-authorization.

"The General Assembly took action today to keep the state's biggest economic recovery program going, ensuring that thousands of workers stay on the job. Today's session was about jobs and capital, and I thank the legislative leaders and members of the General Assembly for passing a 12-month capital appropriations bill as I had asked of them.

"A capital construction program was one of the first priorities of my administration, and it is a key component of my plan to bring jobs and economic recovery to Illinois. The plan is Illinois' first capital program in more than a decade and it is expected to create more than 439,000 jobs over six years."

###

AMES, Iowa -- Some people see cooperatives as the way electricity gets to their rural home, or how local crops get from grain bins to the market, or the way to buy fresh, locally grown foods. Some people call cooperatives a business model,but college students and graduates who have had experiences with cooperatives see them as a way to gain valuable work experiences, scholarships and the means to addressing community needs.

Members benefit
Mingwei Huang, Director of Education and Training at North American Students of Cooperation (NASCO), lived in a housing co-op as a student at the University of Wisconsin-Madison. The housing co-op was not only a beneficial living situation, it was also an educational experience.

"My co-op was in the heart of campus, but was not entirely a student co-op," Huang said. "In fact, it was about half student and half community and workers. This was very grounding for me since it's easy for students to live in a bubble. I learned a lot and developed many great relationships while living with so many great, interesting people."
In fact, skills like basic budgeting, communication, handling conflict, minor maintenance and accountability were skills she learned while living in the housing co-op that remain valuable to her today.

Member ownership and control
A housing co-op is significantly different from an apartment building, rental house or sorority or fraternity. As a member-owner, each resident contributes to the house labor and has a say in how it's run and managed. Huang used her time in a housing co-op to become involved on its board as vice president and in member education. These responsibilities gave her leadership experience, in addition to teaching her about collaboration, democracy and accountability.

"In our society, we are taught to think and act independently or in our own interests," she said. "We tend to organize our relations with others as sole independent people rather than interdependent groups and networks."

The ability for any cooperative to succeed depends on a collective effort, which Huang says is accomplished through healthy communication and navigation of power dynamics. These skills can carry over into the personal and professional realms.

Huang's experience with her housing co-op demonstrate three principles that are widely recognized and practiced by cooperatives: member benefits, member ownership and member control. According to www.eXtension.org, an educational partnership of 74 land-grant universities, these principles distinguish a cooperative from other kinds of businesses. The member-benefits principle is carried out when members unite to produce services otherwise not available, gain access to markets, or other mutually beneficial reasons. The member-owner principle is simple; members own the cooperative and have the financial and operational obligations and rewards of an owner. The member-control principle is exercised when members vote at membership meetings and serve on the board of directors.

Jesse Martin applies cooperative principles to the daily operations of Martin's Native Lumber of Dayton, Va., even though the business is a private, fourth-generation, family-owned business.

Communicating through one-on-one employee meetings and offering profit-sharing retirement portfolios are two practices Martin applies that reflect the cooperative business model.

"Cooperative education has allowed me to consider the world of business with a far more open mind," Martinsaid. "Often, I approach items in my own business with principles learned through the co-op education programs. I have found that if we think of our customers as owners and having a vested interest in our company, that we provide higher quality service."

Martin became involved with cooperatives after attending a conference during college and later becoming selected as the National Institute of Cooperative Education's chairman. The National Institute on Cooperative Education (NICE) is a youth scholar program that provides educational and social activities. The goals of the institute include increasing the understanding of basic cooperative principles, the challenges faced by cooperatives and the opportunities provided by cooperatives.

Expanding cooperative education
A leadership team made up of university faculty and researchers has created the eXtension Cooperative Community of Practice to increase the visibility of the cooperative business model with information they contribute to the website.

Leah Henkes, an Iowa State University senior in dairy science, contributed to the development of the cooperatives one Xtension website during her initial involvement with cooperatives.

"I think it is extremely beneficial for young people to learn about the cooperative business model because it gives them the chance to help network their abilities and resources," Henkes said. "By working with others to accomplish a goal it is easier to reach that goal."

Three Iowa State University students from Ron Deiter's Cooperatives class had the opportunity to attend the 2011 College Conference on Cooperatives (CCOC), a three-day program offered by the National Farmers Union (NFU) and the cooperative community of the upper Midwest on Feb. 19-21. The conference helps college students gain a more thorough understanding of cooperatives and the career opportunities available. It exposes attendees to the many areas of the economy stimulated by cooperatives - beyond agriculture.

Students wanting to be more engaged with local cooperatives, thinking of starting a cooperative, or wanting a better understanding of the responsibilities of a board member, can explore the resources available at the eXtension Cooperatives Community of Practice website. Leadership programs, local job opportunities, scholarships and careers offered by cooperatives are featured on the site.

-30-

Reaffirms Commitment to Doubling State's Exports by 2015;

Presents 2011 Illinois Export Awards

CHICAGO - June 21, 2011. Governor Pat Quinn today reaffirmed his commitment to doubling Illinois' exports by 2015 during an address to kick off Illinois Export Week, a five-day event that helps Illinois businesses expand into the global marketplace. The Governor also presented the 2011 Illinois Export Awards.

"More than half a million Illinois jobs are supported by exports, but we cannot stop now. Our state's continued economic vitality depends on our ability to build key global partnerships," said Governor Quinn. "To continue to grow and lead in the 21st century, we must continue to take every step necessary to increase our exports, ultimately doubling them by 2015."

Expanding global trade partnerships is critical to Illinois' continued economic recovery. Illinois ranks first in the Midwest for exports and foreign direct investment. The state's exports totaled nearly $49.8 billion in 2010, a 19.6 percent increase over 2009. In the first quarter of 2011, Illinois exported more than $14.74 billion worth of non-agriculture goods - an increase of 30.43 percent compared to the same period in 2010.

Illinois Export Week, which runs June 20-24, features a series of seminars designed to help educate business owners on export opportunities. The Illinois Export Awards recognize companies that have achieved excellence in exporting and organizations that have provided substantial export assistance to Illinois companies. Governor Quinn presented 17 companies and organizations with awards at a luncheon on Tuesday. A list of 2011 Illinois Export Award winners is attached.

Illinois Export Week events feature top leaders from Illinois's export business community. Caterpillar Inc. Chairman and Chief Executive Officer Doug Oberhelman was the keynote speaker.

"Last year Caterpillar exported more than $13.4 billion in products from the United States?more than a third of that is from Illinois ? two figures that would have no doubt been higher had the U.S. fully embraced trade liberalization," Oberhelman said. "Simply put, many of our 47,000 employees in the U.S. and 23,000 employees in Illinois depend on trade."

The Illinois Department of Commerce and Economic Opportunity is partnering with local Small Business Development Centers this week to provide businesses with insight into export opportunities around the world. Information is available at www2.illinois.gov/gov/exportweek.

###

Pages