September 28, 2009 Newsletter

In this issue:

Healthcare Debate: Congressman Oberstar's Take

House Passes Landmark Student Aid Legislation

Stimulus Spotlight: New Energy Assistance and Weatherization Funds for MN and a word from our Vice President

Governor's Race 2010: Steve Kelley

Healthcare Debate: Congressman Oberstar's Take

The following is an Op-Ed written by Congressman Jim Oberstar, published in the Duluth News Tribune on September 4th, that addresses his position and ongoing debate about healthcare reform. He wrote the piece following a series of meetings with constituents and healthcare providers on how best to reform our health system.

Healthcare debate must deal with facts
by: Congressman Jim Oberstar

Throughout my service in Congress, paying for health care has been the most recurrent theme and deepest concern to the greatest number of 8th District residents, with the possible exception of keeping or finding a job.

The most dire fear of people in the work force is losing their health insurance. The most vexing issue for policymakers is to contain costs and ensure access to care for our fellow citizens that is affordable at the individual, employer and national level.

Today’s debate over these issues is but another chapter in our long public-policy conversation about health care regarding its availability and affordability. The House and Senate are considering versions of policy options to deal with these vexing issues. My careful evaluation of the House bill raises issues for me as it has for a wide cross section of 8th District residents.

I greatly appreciate the significant input I have received, and I want to extend an invitation for everyone in the 8th Congressional District to share their views with me. I want to make sure every voice is heard on health care, and I encourage everyone to visit my Web site at congress.gov/Oberstar to tell me what you think.

This year, I have learned from my many conversations with constituents in Minnesota and Washington regarding health-care reform. In particular, I have received very substantive input this week from my meetings with the small-business community, health-care providers, seniors, and the faith community. I also have been reviewing numerous e-mail and phone messages regarding your concerns and priorities on this critical issue.

In a meeting with Minnesota hospital administrators this week, I learned that Minnesota hospitals receive, on average, $2,000 less per Medicare beneficiary discharge, and without payment reform, some Minnesota hospitals could close within three years. It is imperative we correct the longstanding disparity in Medicare reimbursement for Minnesota health-care providers. In addition, there are many rural health-care priorities that the National Rural Health Care Association has identified, including improvements in the Critical Access Hospital program and rural health clinics that need to be included in the House bill. There are a great number of additional issues that need to be clarified, but I want to be clear that without additional improvements, I will not support the House health-care bill (H.R. 3200).

It is important to note there have been many changes to H.R. 3200 since its introduction, and I am pleased to report that many of the concerns constituents have expressed have been addressed. Congressional committees approved amendments to prohibit health-care benefits for illegal immigrants, to ban the use of comparative effectiveness research to ration health care, and to clarify that the legislation would not encourage euthanasia.

I am dismayed, however, that some constituent messages are based on inaccurate information. To have a serious and necessary conversation on health-care reform, we must deal with the facts, not fiction. I am disappointed, but not surprised, opponents of health-care reform have gone to great lengths to distort this legislation.

Anyone can review on my Web site some of the most frequent questions and answers that dispel many of the myths regarding H.R. 3200.

Thanks to those who have already made important contributions to the health-care debate. I look forward to gaining additional insights from you as we move forward on this important issue.

House Passes Landmark Student Aid Legislation

Earlier this month, the U.S. House passed the largest investment in college student aid in decades with Congressman Oberstar’s support.

“We are making sure College is affordable for everyone who wants to go,” said Oberstar, after passage of the historic legislation.

College students who receive Pell Grants will see the maximum scholarship increase from $5,500 to $6,900.

In addition to investing in future generations, this legislation will also save taxpayers $87 billion over the next decade and will direct $10 billion back to the Treasury.

These savings are possible, says Oberstar, because the loans will now be originated by the government’s Direct Loan program. “This legislation eliminates the middleman,” said Oberstar. “Tax dollars that once went to banks as loan origination fees and processing charges will now go directly to the students.”

“This is one of the most important investments we can make in America’s future,” said Oberstar.  “We need to make college affordable so we are training the best and the brightest to compete in the global marketplace.”

Stimulus Spotlight: New Energy Assistance and Weatherization Funds for MN and a word from our Vice President

As part of our ongoing series on the Economic Recovery (Stimulus) Package, each month we’re bringing you stories of how the legislation is affecting the economy in Northeast Minnesota. Last month, we detailed the expansion to the Duluth International Airport. You can read that story here.

This month: New energy assistance funds for Minnesota, plus, a message from Vice President Joe Biden

Last week, Congressman Oberstar announced that an extra $27 million in funding to help low-income Minnesota families pay their heating bills and another $65 million to fund home weatherization programs would come from the American Recovery and Reinvestment Act. The Department of Energy grants are aimed at both defraying the cost of home heating for Minnesota families, and creating jobs and saving energy through weatherization that many more families will now be able to afford.

“This is funding that is desperately needed in our state. Even though the economy is beginning to stabilize, many people are still out of work,” said Oberstar. “This funding will help many families make it through a tough winter. This is a program that will have lasting benefits.”

Last week’s grant announcements means Minnesota will receive a total of $54 million in energy assistance funding from the American Recovery and Reinvestment Act and $132 million in weatherization funding.

“These programs were severely neglected for years, despite the fact that there are always more applications for assistance than there is funding,” said Oberstar.  “But the tide has turned, and we have a Congress and a White House willing to invest in these programs.”


The following is an Op-Ed written by Vice President Joe Biden for the New York Times:

SIX months ago, when President Obama and I took office, we were confronted with an economic crisis unparalleled in our lifetime. The nation was hemorrhaging more than 700,000 jobs a month, the housing market was in free fall, and the fate of the financial system hung in the balance. Credible economists were handicapping the probability of a depression. The actions we took — passing the Recovery Act, stabilizing the banking system, pressing to get credit flowing again and helping responsible homeowners — brought us back from the precipice. Monthly job losses are down, financial markets are improved, and economic contraction has slowed. We still have a long way to go, but clearly we are closer to recovery today than we were in January. The Recovery Act has been critical to that progress.

  Notwithstanding this progress, the nature of the Recovery Act remains misunderstood by many, and misconstrued by others: critics have suggested that the entire $787 billion is being spent on pet programs. As the person leading the administration’s efforts to put the Recovery Act into effect, I want to set the record straight.

  The single largest part of the Recovery Act — more than one-third of it —is tax cuts: 95 percent of working Americans have seen their taxes go down as a result of the act. The second-largest part — just under a third —is direct relief to state governments and individuals. The money is allowing state governments to avoid laying off teachers (14,000 in New York City alone), firefighters and police officers and preventing states’ budget gaps from growing wider.

  And those hardest hit by the recession are getting extended unemployment insurance, health coverage and other help to get through these tough times. The bottom line is that two-thirds of the Recovery Act doesn’t finance “programs,” but goes directly to tax cuts, state governments and families in need, without red tape or delays.

  As for the final third, the act is financing the largest investment in roads since the creation of the Interstate highway system; construction projects at military bases, ports, bridges and tunnels; long overdue Superfund cleanups; the creation of clean energy jobs of the future; improvements in badly outdated rural water systems; upgrades to overtaxed mass transit and rail systems; and much more. These investments create jobs today — and support economic growth for years to come. Far from being a negative, the wide array of these investments is needed given the incredible diversity of the American economy.

  Projects are being chosen without earmarks or political consideration, and many contracts have come in under budget. More than 30,000 projects have been approved, and thousands are already posted on recovery.gov —providing a high level of transparency and accountability. Taxpayers should know that we have not hesitated to reject proposals that have failed to meet our merit-based standards.

  The care with which we are carrying out the provisions of the Recovery Act has led some people to ask whether we are moving too slowly. But the act was intended to provide steady support for our economy over an extended period —not a jolt that would last only a few months. Instead of quick-hit rebates, we are giving Americans a tax cut in each paycheck. Instead of pumping out all the state aid immediately, we are spreading it over the two years that it will be needed. Road projects, energy projects and construction projects are being started as soon as they pass review, contracts are competitively bid and reporting systems are in place.

  Even with such care being taken, we have already committed more than one-fourth of the Recovery Act’s total funds, and we are on track to meet the deadline set when the act was passed in February — spending 70 percent by the end of September 2010.

  The Recovery Act is not the cure for all our economic ills —no single piece of legislation could be. But how many government initiatives can point to both large numbers of projects coming in under budget and a Government Accountability Office finding that we are ahead of schedule in key areas?

  It is true that the act’s effort to address multiple problems simultaneously makes it an easy target for second-guessing. Critics have argued that the tax cuts are too small (or too large); that too much (or not enough) aid is going to rural areas; that too little (or too much) is being spent on roads. Recently, some have even criticized the act for helping support soup kitchens and food banks.

  But the way I see it, our balanced approach recognizes that there is no silver bullet, no single thing, that can address the many and complex needs of America’s vast economy. We need relief, recovery and reinvestment to cope with our multifaceted crisis — and only 159 days after it was signed by President Obama, the Recovery Act is already at work providing all three.

Governor's Race 2010: Steve Kelley

As part of our effort to introduce DFL governor candidates to our readers, we profiled Matt Entenza in our last issue of ODP. You can find that article here.

Steve Kelley
Lives in: Hopkins
Previous political experience: Minnesota State Representative, Minnesota State Senator.

Steve grew up in Minnetonka along with six brothers and sisters. When Steve was a boy you could probably find him feeding the family’s two horses or climbing his favorite apple tree in the backyard. Steve’s father sold real estate and his mother raised seven children.

An avid high school athlete, Steve went on to Williams College in Massachusetts where he met his future wife, Sophie Bell. He didn’t know he wanted to be in public service until his junior year, “When I got the picture that lawyers knew where the levers were to change the system.” After graduating from Williams, Steve went on to Columbia Law School.

In 1983, Steve and Sophie settled in Hopkins. They have two adult children, Paul and Eleanor.

Steve served as a Minnesota DFL state senator for District 44 (St. Louis Park, Hopkins and Golden Valley) from 1997 to 2006 and as a state representative for District 44A from 1993 to 1996. He is currently a senior fellow at the Humphrey Institute and the director of the Center for Science, Technology, and Public Policy.

During his time in the Legislature and at the University, Steve dedicated himself to finding smart, innovative solutions to challenging problems. When the Governor appointed a divisive and destructive Education Commissioner in 2002, many thought that there was little that could be done. Steve had the courage to stand up to the Governor and the wisdom to successfully protect Minnesota’s public schools. When a budget impasse paralyzed state government, Steve devised a plan that protected jobs, improved education funding, promoted natural resources, and got Minnesota back on the road to prosperity.

In addition to his ability to do hard work and make difficult decisions, Steve’s unique suburban experience allows him to take on Republicans on their own turf – the suburbs and exurbs – a strategy for electoral success.

Steve Kelley has consistently demonstrated that he not only understands the challenges that Minnesotans face, but also has the judgment, vision, and courage to successfully overcome these obstacles. Steve has courage that Minnesotans can count on.

Visit www.stevekelley.org for more information.

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