November 2007 

The "NATaT Washington Report" is a monthly email newsletter that provides timely information to town and township officials on the legislative, regulatory, funding, and policy decisions in Washington that could affect your communities.  The Washington Report focuses on NATaT's primary federal issues.  The Washington Report is produced by NATaT's federal representative in Washington, The Ferguson Group.  For more information on the legislation described in this report, see http://thomas.loc.gov/ or contact The Ferguson Group.  Contact NATaT federal director Jennifer Imo at 1.866.830.0008 or jennifer.imo@natat.org for more information. 

The October 2007 Washington Report Contains Summaries of the Following Issues:

• Census
• Election Reform
• Environment and Natural Resources
• Farm Bill
• First Responders
• Homeland Security
• Tax Relief
• Telecommunications

Census

NATaT Participates in the 2010 Census Advisory Committee Meeting

On October 18-19, NATaT Board Member Bart Russell represented NATaT at the Census Bureau's Census Advisory Committee (CAC).  The two day meeting was held to introduce the new 2010 Census Communications Campaign and to introduce the team that was awarded the communications contract, DRAFTFCB.  The CAC was responsible for developing recommendations to build on the success from the 2000 Census and improve what did not work.  The first day was an informal working day where members of the CAC drafted the recommendations, which were presented to the Census Bureau and DRAFTFCB on day two.  The recommendations included providing sufficient funding for preparatory activities, and relaying audience-appropriate messages about confidentiality and privacy.  An effective message during the 2000 Census was the tie between participating in the Census and adequate funding for local schools and government services.  The CAC recommended that the new media campaign include the same message.  The CAC members stressed the significance of building partnerships at the local level to increase awareness and participation in the Census.  Bart Russell highlighted the importance of reaching out to smaller communities, such as towns and townships, and suggested incorporating a campaign through the local schools.  This is a route that the Bureau utilized in the 2000 Census, but it was incorporated late into the campaign.  This year, the CAC has advocated for earlier and timelier participation in the schools.  

Participation in the 2010 Census Advisory Committee meetings continues to help raise the visibility of NATaT as an effective local government advocacy group.  NATaT and NACo are the only local government organizations represented on the CAC. 

2010 Census Funding in Trouble

Congress enacted a six week Continuing Resolution (CR), which limits spending at all federal agencies to their fiscal year (FY) 2007 levels.  The terms of the CR pose unique problems for the Census Bureau, especially as it prepares for the 2010 Census. The Administration requested a 38.5% increase in funding for the Bureau in FY 2008 to fund preparations and testing activities, including the important 2008 Census Dress Rehearsal and the Local Update of Census Addresses (LUCA) program. Without additional funding, the Bureau may be forced to cancel crucial preparations for the decennial census, including canceling the 2008 Census Dress Rehearsal. Census officials have stated that the CR may make it impossible to fund the final phase of the Dress Rehearsal, which could mean that for the first time in 40 years, the Bureau will not be able to test the final Census design. 

NATaT signed on to a letter to U.S. Secretary of Commerce Carlos Gutierrez and various Members of Congress urging them to exempt the Census Bureau from the CR and to fully fund the Census Bureau at the President's FY 2008 proposed funding level.   NATaT joined a collaboration of state and local governments, labor groups and businesses in this effort. 

The 2010 Census Dress Rehearsal is important for towns and townships because it will help ensure an accurate count for small communities.  The Dress Rehearsal provides the Bureau with the only opportunity to test hard to reach communities, which includes some small towns and townships.  NATaT's support of the Census Bureau and preparations for the 2010 Census has come at an important time and we will continue to bring NATaT members up-to-date information to ensure that towns and townships are included the process.

Election Reform

The Voter Confidence and Increased Accessibility Act of 2007, H.R. 811 was scheduled for a  floor vote in mid-September, but plans were scrapped due to continuing local and state opposition.   In fact, NACo has credited NATaT and its efforts to table the bill after a strong presence on Capitol Hill during the September 2007 Conference.

According to House leadership, the earliest the bill could be scheduled for a floor vote is sometime in December.  However, it is not likely.

H.R. 811 would amend the Help America Vote Act of 2002 by requiring a voter-verified permanent paper ballot in time for the 2008 elections.  This bill would impose numerous federal mandates for the 2008 elections, including a requirement that all ballots be printed on archival quality paper and meet federal standards for converting the printed ballot into accessible media for verification by visually impaired voters. 

NATaT is working with NACo to oppose this measure, emphasizing that the federal mandates prescribed in the bill for next year's election are unworkable, as federal standards for many of the mandates have not yet been issued.  Additionally, H.R. 811 and S. 1487, the Senate counterpart, would dictate extremely expensive and time-consuming practices for conducting audits and recounts even when a candidate wins by a wide margin.  There is simply not enough time to enact state conforming legislation, do testing and procurement, develop training materials, and train election officials, pollworkers and voters on how to use equipment they have never used.

Environment and Natural Resources

Water Resources Development Act (WRDA)

Both the House and Senate overrode President Bush's veto of the Water Resources Development Act of 2007 (WRDA) conference report marking the first time since President Bush took office that Congress enacted a law over his objection.  On November 8^th, the Senate voted 79-14 to override the President's veto and the House voted 361-54 on November 6^th.

President Bush vetoed the bill because of its $23 billion projected cost and what he considered a failure to focus funding on those projects which are critical to our nation's water infrastructure system.

Many towns and townships are directly involved or affected by water resource projects on their local rivers, lakes, coasts, canals, reservoirs, and wetlands.  NATaT supports the passage of WRDA legislation that is badly needed to support local water resource improvements and projects.  WRDA legislation should include increased funding for local projects, improvements to the Corps planning process to reduce delays in Corps projects, fair cost-share methodologies for local project sponsors, and broadened Corps authorities to support local waterfront revitalization.    

Farm Bill

On October 25^th, the Senate Agriculture, Nutrition and Forestry Committee approved its version of the Farm bill, H.R. 2419, the Food and Energy Security Act.  The five-year, $283 billion bill reauthorizes agriculture payments, conservation programs, nutrition subsidies and alternative-energy incentives.  The bill makes major investments for the future in energy, conservation, nutrition, and rural development initiatives, while staying within strict budget limits.

Highlights of the bill include:

• The rural development title provides $400 million for a variety of economic growth initiatives in rural communities. The bill improves access to broadband to rural America, as well as provides loans to rural hospitals.
• The energy title creates financial incentives to help farmers transition into biomass crops, and supports the construction of biorefineries from cellulose ethanol with a loan guarantee program. The bill also expands markets for biobased products, and helps farmers, ranchers and rural small businesses move to renewable energy and energy efficiency.
• The conservation title extends key conservation programs and increases critical funding. The Conservation Stewardship Program is expected to grow at a pace of more than 13 million acres a year. The bill also provides funding to increase enrollment in the Wetland Reserve Program, the Environmental Quality Incentives Program (EQIP) and the Grassland Reserve Program.
• The nutrition title updates archaic nutrition program rules, increases Food Stamp benefit levels, and expands the Fresh Fruit and Vegetable Program in elementary schools nationwide.

The rural development and broadband deployment programs supported by federal farm legislation are essential to towns and townships.  NATaT will remain active in the Farm Bill reauthorization process to ensure that these programs are adequate to handle the national needs of small and rural communities, and that NATaT communities are eligible to participate in these programs.

First Responders

Volunteer Responder Incentive Protection Act of 2007 (VRIP Act, H.R. 943/S. 1466)

On November 6^th, the House passed H.R. 3997, the Heroes Earnings Assistance and Relief Tax Act of 2007.  Section 105 of the bill excludes from taxable income any qualified State and local tax benefit and up to $360 per year of any other payment from a state or local unit of government to an individual for services performed as a member of a qualified volunteer emergency response organization.

Volunteer firefighters and EMS personnel are integral to public safety in towns and townships.  NATaT strongly supports this proposed law that would provide appropriate incentives and protections for the men and women who volunteer to serve their local communities through volunteer fire and EMS companies.  NATaT has teamed up with the National Volunteer Fire Council, the Congressional Fire Services Institute and the International Association of Fire Chiefs to support this bill.

Homeland Security

Department of Justice's Gang Resistance Education and Training (GREAT) Program

The Department of Justice's Bureau of Justice Assistance (BJA) has released its application for the FY 2008 Gang Resistance Education and Training (GREAT) program. 

The GREAT program is a school-based, law enforcement officer instructed classroom curriculum administered by BJA in cooperation with the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The goal of the program is to provide assistance to local governments' efforts in deterring youth from engaging in delinquency, violence, and gang membership, focusing on providing life skills to students to help them avoid violence to solve problems. 

All local governments with an active GREAT program and communities that intend to develop one are eligible to apply for funding.  Priority consideration will be given to applications that propose to deliver the GREAT middle school curriculum and at least one other GREAT component; target at-risk youth/schools; implement the GREAT program with another gang-related initiative; implement a collaborative project that may include multiple jurisdictions and/or agencies; and deliver a cost-effective program as demonstrated by a low cost per youth ratio (program cost divided by number of youth served).

The amount of funding available for FY 2008 has not been determined yet, but BJA anticipates the average grant awards will range from $100,000 to $150,000.  Applications must be submitted to BJA by December 13^th.  Applications may be obtained via BJA's website http://www.ojp.usdoj.gov/BJA/grant/great.html.

Tax Relief

On October 4^th, Senators Tim Johnson (D-SD), John Thune (R-SD) and Kent Conrad (D-ND) introduced S. 2154, The Local Officials Tax Relief Act. 

The legislation would amend the IRC to exempt small payments to public officials from FICA tax withholding and reporting requirements.  Currently, election workers who are compensated less than $1,300 a year are excluded from the IRC's definition of "employment" for income and FICA tax purposes.  S. 2154 would expand that exclusion to include local public officials who are compensated less than $1,300 a year.  Local governments would still be required to provide the minimally compensated public officials with a 1099 tax form, but would avoid the burdensome and expensive FICA withholding and reporting requirements.  Individuals that receive payment for their public service capacity will still be required to report this income for federal tax purposes. 

Towns and townships across the country rely on volunteers to provide essential services to their communities.  That includes public officials - elected and appointed officials that serve on local governing boards, commissions and committees - who make vital decisions for and contributions to their communities.  Many of these public officials receive minimal compensation for their service, but under recent federal interpretation of the federal Internal Revenue Code (IRC) and the Social Security Act, these small payments are classified as "employment wages" and subject to FICA (Social Security and Medicare) withholding and reporting requirements.  The withholding and reporting burden on small local governments associated with these tax requirements is substantial.  In many cases, the tax processing fees incurred by local governments are greater than the tax revenue provided to the federal government.

NATaT is currently working to introduce a companion measure in the House of Representatives, as well as identifying co-sponsors for the bills.  NATaT has also reached out to the National League of Cities and the National Association of Counties to support the legislation.  NATaT members should call their Senators and urge them to support S. 2154.  Once a House bill is introduced, we will request similar calls to your entire congressional delegation.

Telecommunications

Community Broadband Bill

The Senate Commerce, Science and Transportation Committee approved S. 1853, introduced by Senator Lautenberg (D-NJ), on October 30^th.  The bill would:

• Bar any state or local government from prohibiting any public provider from deploying broadband services.
• Require a municipality offering high-speed Internet services to comply with federal telecommunications laws.
• Encourage public-private partnerships.
• Require municipalities to give the public notice and an opportunity to be heard before they provide broadband service.
• Prohibit municipalities from discriminating against competing private providers.
• Prohibit the federal government from bailing out bankrupt municipal broadband projects, unless a network's collapse was the result of a major disaster.
• Give the private sector 30 days after a broadband project's announcement to bid on providing the Internet service.

The Senate bill has seven cosponsors, including Commerce, Science, and Transportation Committee Chairman James Inouye (D-HI), Vice Chairman Ted Stevens (R-AK), Senator John Kerry (D-MA), Senator John McCain (R-AZ), Senator Claire McCaskill (D-MO), Senator Gordon Smith (R-OR) and Senator Olympia Snowe (R-ME).

On August 1^st, House Energy and Commerce Committee Members Congressman Rick Boucher (D-VA) and Congressman Fred Upton (R-MI) introduced the house companion bill, H.R. 3281.  The legislation supports the deployment of high speed networks by preserving the ability of local governments to offer community broadband infrastructure and services.  The bill also includes competitive safeguards to ensure that public providers cannot abuse governmental authority to discriminate against private competitors.  The legislation is currently pending before the House Committee on Energy and Commerce.

Internet Tax Moratorium

On October 31^st, the President signed into law the Internet Tax Freedom Extension Act, H.R. 3678.  The bill extends the moratorium on Internet access taxes for seven years; retains the grandfather clause, which allows states and localities taxing Internet access in 1998 or before to continue collecting such taxes; clarifies that incidental services may include those independently or not packaged with Internet access; and contains a restriction that once a grandfathered tax is terminated, it may not be reinstated.