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AUGUST-SEPTEMBER 2008 UPDATE

OFFICE OF GOVERNMENT RELATIONS
Legislation and Policy Report

August-September 2008

WASHINGTON, D. C.

Following the annual August recess and the Democratic and Republican National Conventions, Congress returned to Washington on September 8. The month on Capitol Hill was frenetic with the White House and Congress focused on addressing a fix for the meltdown of the financial markets and stabilizing the U.S. economy, which as of this writing, had not been resolved. Another priority was approval of a Continuing Resolution (CR) to fund government agencies into the new fiscal year that begins on October 1. Speaker Nancy Pelosi had planned to adjourn the 110th Congress on September 26 but members continue to work with the White House into October to address the financial and economic health of the country. It is unclear whether members will be called back to Washington for a lame-duck session following the November 4 elections.

Budget and Appropriations:

Federal deficit – The White House Office of Budget and Management (OBM) released its budget projections on August 2 with a new FY2009 budget deficit forecast of $482 billion, the largest federal deficit ever. The actual deficit is expected to be considerably higher because the forecast excludes, among other items, military spending in Iraq and Afghanistan next year.

FY2009 Appropriations – NASA’s budget, as approved in the House and Senate Appropriations Committees, shows that the two chambers agreed on more than just giving the space agency a comparable top-line budget boost. The two bills are remarkably similar in many of the details as well. Both versions would fund NASA at $17.8 billion. The breakdown for the various directorates includes:

Science – House, $4.5 billion; Senate, $5.1 billion
Aeronautics – House, $515 million; Senate, $500 million
Exploration Systems – House, $3.5 billion; Senate, $3.5 billion
Space Operations – House, $2.9 billion; Senate, $2 billion
Education – House, $187 million; Senate, $115 million
Earmarks – House and Senate appropriators were fairly restrained compared to previous years. Senate includes 55 earmarks totaling $48 million; House approved 36 earmarks totaling $26.7 million.

The Senate Appropriations Committee is proposing to reduce the Administration’s FY09 request for the Department of Energy’s (DOE) Basic Energy Sciences (BES) by $150 million to $1.4 billion. This proposed reduction from the request, which is included in the FY09 Energy & Water appropriations bill (S. 3258) marked up the Senate Committee in July, would force DOE to postpone launch of the Energy Frontier Research Centers program, a university research program the DOE plans to initiate in 2009. It also would essentially eliminate funding for basic solar energy research at BES by transferring $60 million in that program to applied solar research and development in the Energy Efficiency and Renewable Energy account.

Continuing Resolution – With none of the FY09 appropriations bills approved by Congress and the new fiscal year looming on October 1, a continuing resolution (CR) was required to sustain funding for federal agencies and programs after September 30. The vehicle for the CR was a “minibus” bill consisting of the FY09 Defense, Homeland Security and Veterans Affairs appropriations measures that total more than $630 billion and will keep the federal government operating until March 6, 2009. The spending measure directs $488 billion to the Pentagon, provides $40 billion for domestic security operations and $41 billion to finance medical care for military veterans in the fiscal year beginning October 1. DOD, DHS and VA all received significant increases for their R&D portfolios, but other federal agencies in the remaining 9 of the 12 appropriations bills will be operating temporarily at or below 2008 funding levels.

Earlier in the year Congressional appropriators endorsed large increases for the three physical science agencies in the American Competitiveness Initiative (ACI) – National Science Foundation (NSF), National Institute of Standards and Technology (NIST), and Department of Energy Office of Science (DOE OS), - increases for human spacecraft development, increases for biomedical research in the National Institutes of Health (NIH), and increases in other parts of the federal research and development portfolio. Instead, under the CR, most programs will continue to operate at or below 2008 funding levels for several months into the new fiscal year.

The decision to extend federal funding into 2009 could eliminate the need for Congress to return after November 4 for a lame-duck session. Members could return to take up other issues such as trade deals sought by the White House.

FY2009 Defense funding – For overall Defense Science & Technology (S&T) programs, the CR provides $13.486 billion. This is an increase of $807 million or 6.4 percent above the FY2008 funding level. S&T programs include defense-wide and military service funding for 6.1 basic research, 6.2 applied research and 6.3 advanced technology development. For additional information about 6.1 and 6.2 funding breakdowns by military branch and defense wide, please contact the Office of Government Relations

FY2009 Defense authorization, indirect cost recovery study – The FY2009 defense authorization bill directs the Government Accountability Office (GAO) to study the indirect costs of Defense grants and contracts. Although the House language is not included in the conference report the study will move forward. Senate negotiators did not dispute the proposed study in conference and GAO does not require a specific appropriation to undertake the review. The report is to be completed in one year.

Some readers may recall that during the FY2008 appropriations process Rep. John Murtha (D-PA), chairman of the House Defense appropriations subcommittee, raised questions about university indirect cost rates and placed a one-year cap on such reimbursement. (The FY09 appropriations bill extends the cap.) The limitation is a 35 percent cap on the amount of an overall grant, not on the negotiated rate.

Higher Education:

Education: Endowments – Senators Charles Grassley (R-IA) and Rep. Peter Welch (D-VT) sponsored a roundtable on college and university endowments and costs on September 8. The session, “Use of Endowment Funds and Making Higher Education More Affordable,” included testimony by two dozen college and university presidents and policy experts. Senator Grassley and Rep. Welch stated that it was only fair to ask whether universities were doing enough for society given that the value of their tax exemption in FY2007 was more than $17 billion. Although Senator Grassley has repeatedly suggested that he would like to mandate that the richest universities spend five percent of their endowment each year, as private foundations are required, he gave no hint at the hearing that any specific legislation was on the horizon. It is widely accepted that Mr. Grassley’s crusade on this issue is motivated by his and many other members of Congress’ concerns on spiraling college tuition costs that may limit access by qualified students to a college education. At the hearing many college leaders gave examples of how their institutions and others are taking steps to make college affordable.

HEA Reauthorization – The Department of Education has taken the first steps toward implementation of the Higher Education Opportunity Act (HEOA), the measure signed into law that reauthorized the Higher Education Act. The Department will hold a series of six public hearings that will permit members of the public to suggest implementation issues that might be appropriate for negotiated rulemaking. The hearings will be held on:

September 19 Texas Christina University, Fort Worth, TX
September 29 – University of Rhode Island, Providence, RI
October 2 – Pepperdine University, Malibu, CA
October 6 – Johnson C. Smith University, Charlotte, NC
October 8 – US Department of Education, Washington, DC
October 15 – Cuyahoga Community College, Cleveland, OH

Student loans – President George Bush signed H.R. 6889, Ensuring Continued Access to Student Loans Act of 2008. The legislation is a one year extension of the measure that was enacted on May 7 to diminish the impact of the credit crunch and restore stability to the student loan market by ensuring continued access to federal student loans for all eligible students and parent borrowers. The law enacted in May increased loan limits for unsubsidized Stafford undergraduate loans and delayed repayment for parent borrowers of PLUS loans. The legislation gives the Secretary of Education authority to purchase loans from private lenders made under the federally guaranteed loan program to free up capital for new loans. The bill also granted the Secretary the authority to purchase loans from lenders for the 2008-2009 academic year and to offer lenders access to short-term liquidity.

Medical student loans – The Association of American Medical Colleges (AAMC) and nearly 100 medical organizations submitted a comment letter to the Department of Education in August urging the Department to permanently reinstate the economic hardship deferment debt-to-income ratio (known as the “20/220 pathway”) for student loans or provide an equivalent funding mechanism for loan deferments. This would allow medical residents to continue an option to postpone loan payments, without penalties, during their training.

Pell Grant shortfall – The Department of Education’s budget director has alerted Congress that the Pell Grant program will face a cumulative deficit of $6 billion in FY09. The shortfall has occurred because a larger-than-expected number of students have qualified for Pell Grants and the grants’ total exceeds the funding available for the program. Congress appropriated $14 billion for Pell in FY08 but there has been an historic increase this year in the number of students applying for and receiving the grants.

Under rules approved in FY06 Congress cannot simply carry over the Pell Grant shortfall but must cover its costs. There are three options: a) find an extra $6 billion; b) reduce the award levels for qualifying students; or c) cut funding for other programs within the jurisdiction of the House and Senate Labor/HHS/Education appropriations subcommittees. The shortfall will need to be addressed by both chambers’ panels and it is not clear how that will be accomplished.

Panel recommends student aid overhaul – A College Board panel of education experts and researchers have proposed a broad reconfiguration of federal policies on financial aid for college, including a simpler application process, Pell Grant maximum linked to the consumer price index, and most radically, federally financed college savings accounts for children in low-income families. The panel recommended scrapping the current federal financial application (FAFSA) and having the government secure all needed financial information from the IRS. Students’ eligibility for Pell Grants would be based on their family size and adjusted gross income. The panel recommends linking the maximum a student can borrow through the Stafford Loan program to the federal poverty level, allowing the maximum to rise with inflation. They also suggest that the standard 10-year mortgage-style repayment plan be replaced with a graduated repayment plan so that payments would increase with borrowers’ income. Although the report is expected to receive intense scrutiny from Congress, education groups and the public, it is unclear whether the recommendations will win enough support to have a chance of being adopted.

Energy:

Yucca Mountain – At a July hearing before the House Committee on Energy & Commerce’s Subcommitte on Energy and Air Quality, Edward Sproat III, Director of the Department of Energy’s (DOE) Civilian Radioactive Waste Management Office, stated that after 20 years of study about the feasibility of using Yucca Mountain, NV as a permanent nuclear waste repository, the U.S. is about “three to four years away from answering that question.” Since the hearing the DOE released a 52-page report that estimates a $96.2 billion life cycle cost over 150 years to research, construct and operate the repository.

The “three to four years” referenced is the length of time that the Nuclear Regulatory Commission (NRC) will need to review the 8,600 page license application that DOE submitted in early June. After an initial review of the adequacy of the application, the NRC will, following reviews and hearings, determine if a construction and operating license can be issued. The earliest possible opening date is estimated to be 2020.

Beyond the NRC review and certain litigation, the opening of the repository faces another imposing obstacle: financing. The repository program historically has received $300-$500 million annually. DOE estimates that between $1.2-$1.9 billion will be required annually to construct and operate the repository. A funding mechanism was established for the construction and operation of the repository that is now worth $21 billion. $750 million is added to the fund each year in mandatory nuclear utility fees. The fund also draws approximately $900 million in annual interest. Congress has not used these funds as intended. Rather than allowing DOE to draw from this fund, Congress appropriates money and “in practice, most of that money has been expended for other purposes,” as stated by subcommittee chairman Rick Boucher (D-VA).

Basic energy research and climate change – Two House panels held hearings to review the role of energy research in developing energy applications an addressing global climate change. The House Science and Technology Energy and Environment Subcommittee, chaired by Rep. Nick Lampson (D-TX), held a September 10 hearing to discuss the importance of basic energy research, including recent initiatives to advance research for specific energy applications. Additional information about the hearing titled, “The Foundation for Developing New Energy Technologies: Basic Energy Research in the DOE Office of Science,” is available on the Committee’s website: http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2292

The House Select Committee on Energy Independence and Global Warming, chaired by Edward Markey (D-MA), also held a hearing focused on the R&D investments needed to meet America’s future energy and challenges. Among the witnesses were Susan Hockfield, President of the Massachusetts Institute of Technology, and Stephen Forrest, Vice President of Research at the University of Michigan.

NASA:

Shuttle – On August 25 Senators John McCain (R-AZ), Kay Bailey Hutchison (R-TX) and David Vitter (R-LA) sent a letter to President George Bush asking him to direct NASA not to take any action that would prevent the agency from continuing to fly the space shuttle for several years beyond 2010 should it be necessary. Three days later a NASA official in charge of the shuttle launch manifest sent a memo to colleagues instructing them to kick off a “shuttle extension assessment” requested by NASA Administrator Michael Griffin to determine what would be required to keep the shuttle flying until 2015.

Administrator Griffin stated that he remains committed to retiring the shuttle on schedule and directing the roughly $3 billion annually now spent on that program into completing the Orion Crew Exploration Vehicle and its Ares 1 launcher, both of which are under development.

In other shuttle news, a string of hurricanes and tropical storms has altered NASA’s launch preparations prompting the space agency to delay the Atlantis’ target liftoff to October 10 from October 8 with the Endeavour’s supply mission to the ISS moved to a November 12 launch. Atlantis’ 11-day mission is to upgrade and refurbish the Hubble Space Telescope. However, an unexpected instrument failure in the Telescope at the end of September requires the repair mission to be postponed until 2009. Hubble is due to be replaced in 2013 by the James Webb Space Telescope.

National Institutes of Health:

Financial conflict-of-interest – Norka Ruiz Bravo, Deputy Director of NIH, sent a reminder to all institutional officials concerning compliance with Public Health Service (PHS)/NIH Objectivity in Research (financial conflict of interest) requirements. She also announced a new tutorial posted by NIH COI website to “augment” training and educational activities of the extramural community. The NIH tutorial reviews the requirements of, and the Institutional and Investigator responsibilities for compliance with, the regulation. Links to the letter to institutional officials and the new web-based tutorial are available at NIH’s COI website at: http://grants.nih.gov/grants/policy/coi/index.htm

Public access to NIH databases halted – The NIH has halted public access to large amounts of aggregate human DNA data in databases that it manages. Action occurred following reports of a new bioinformatics tool that could allow researchers to identify a single research subject’s DNA out of thousands who give samples for genome-wide association studies. Citing privacy concerns, the agency removed aggregate statistics files from the public portion of datasets it manages, such as the Database of Genotypes and Phenotypes and the Cancer Genetic Markers of Susceptibility. NIH stated that others operating similar databases, such as the Wellcome Trust Case Control Consortium in England and the Broad Institute of MIT and Harvard, have taken similar actions.

Meanwhile, House Judiciary Committee Chairman John Conyers (D-MI) has introduced legislation to overturn the policy of the NIH on public access to the results of NIH-funded research. Although further action on the bill is considered unlikely this year, its introduction demonstrates that the policy remains controversial.

Post-Docs – NIH has reported on the development of implementation plans for enhancing the peer review system at NIH and on changes to the tracking system for NIH extramural researchers. Noting the need for accurate and useful data on project staff associated with NIH-funded research grants and urged on by the NIH Reform Act of 2006 (P.L. 109-482) requirements to collect information and report on postdocs who serve as research assistants or associates on research grants, the NIH plans to require postdocs to register in the eRA Commons over the next year.

Additionally, the agency will modify the Senior/Key Personnel Report to include all personnel associated with the project for a month or more. NIH hopes that the revised form will “clarify, simplify, and improve” the data collection and, coupled with the Commons accounts for postdocs, create a reliable linkage of postdocs to research projects.

New website for extramural researchers – The NIH has developed a new web page for the extramural research community outlining the agency’s response to national disasters and other emergencies. The site includes guidance, notices, and other information of particular relevance to investigators and their institutions, as well as links to similar emergency response resources from other federal agencies. In an emergency the NIH’s immediate response is to protect the health and safety of people and animals in the programs it oversees, and to preserve the health of the biomedical research enterprise in the area affected by the emergency. For additional information go to: http://grants.nih.gov/grants/natural_disasters.htm.

National Center for Research Resources – The National Center for Research Resources (NCRR) has introduced its new strategic plan, which outlines the Center’s priorities and goals for research infrastructure, informatics and biomedical research workforce needs from FY2009-FY2013. The NCRR is the only major component of the NIH that provides for infrastructure and resource needs for all areas of biomedical research. For additional information go to: http://www.ncrr.nih.gov/straegic_plan

National Science Foundation:

As part of a continuing review of cost-sharing policies at the National Science Foundation (NSF), a committee of the National Science Board (NSB) has issued a request for public comment on the use of cost-sharing in NSF-funded activities, with a focus on a list of specific topics. The NSB will use this information in developing the second of two reports on NSF cost-sharing, which will be more comprehensive than the first report and which the NSB plans to issue in early 2009. The deadline for comments is October 1, 2008.

Background – A provision in the America COMPETES Act tasked the NSB with conducting a comprehensive review of the “unintended consequences” of the agency’s 2004 decision to eliminate mandatory cost-sharing for all NSF programs. In February 2008 the Board issued its first report to Congress, which focused on mandatory cost-sharing. Based on recommendations in the report, NSF will reinstate mandatory cost sharing in FY2009 for the following programs: Engineering Research Centers, Experimental Program to Stimulate Competitive Research (EPsCOR), and Industry/University Cooperative Research Centers.

Research:

FY2007 research and development investment – The most recent data from the National Science Foundation indicates that after stagnating in the early part of the decade, total US R&D spending grew in real terms in 2007 for the fifth consecutive year to reach a new high of $368 billion. U.S. R&D (federal, industry and other funding sources) grew six percent between 2006 and 2007, buoyed largely by increases in industry support of R&D. Federal support of R&D, however, failed to keep pace with inflation.

Embryonic stem cell research – A committee of the National Academy of Sciences has released amendments to its guidelines for human embryonic stem cell research. The guidelines were first issued in 2005 and last updated in 2007. The new amendments include:

Clarifying that “direct expenses” for reimbursement to women donating their eggs for use in stem cell research may include costs associated with travel, housing, child care, medical care, health insurance and actual lost wages.
Recommending that the public be informed about the types of stem cell research underway at an institution and that the institution conduct periodic audits of its stem cell oversight committees.
Clarifying that an institutional oversight committee may conduct expedited review for research done exclusively in a laboratory dish or test tube that does not create new lines of stem cells but uses previously derived human embryonic stem cell lines.

The Committee also modified the National Academies’ guidance on the derivation and use of stem cells in light of the development of “induced pluripotent stem cells.” For additional information go to: http://www8.nationalacademies.org/onpinews/newsitem.aspx?RecordID=12260.

Presidential Campaigns:

Senator John McCain – Senator McCain released a technology agenda in mid-August that includes a permanent 10 percent tax credit on R&D wages, expansion of the H-1B visa program for foreign guest workers, and tax breaks for companies that provide high-speed Internet access to low-income customers. The Senator also stated that he will ‘strive to ensure that Administration appointees across the government have adequate experience and understanding of science, technology, and innovation.” The McCain campaign also released his agenda for higher education. The policy includes a call for the simplification of higher education tax benefits and federal financial aid programs, and the elimination of earmarks in federally funded research.

Senator Barack Obama – Senator Obama, who released a technology program in November 2007, has said that he also would make the R&D tax credit permanent; reform the immigration process to increase the number of permanent visas issued to foreign skilled workers; and create a national “chief technology officer” to ensure that all federal agencies have the right infrastructure, policies and services for the 21st century. Mr. Obama’s education policy proposes to simplify the process of applying for federal financial aid and calls for a universal, refundable tax credit to ensure that the first $4,000 of a college education is free for most Americans.

Science policy in the presidential election – The Center for the Study of the Presidency has completed its report, Presidential Leadership to Ensure Science and Technology in the Service of National Needs: A Report to the 2008 Candidates. The report contains a number of recommendations intended to be seriously considered by the presidential candidates’ staffs before and during transition planning, in order to strengthen the S&T advice provided to the President and federal agencies.

And, both the McCain and Obama presidential campaigns have provided answers to 14 science policy questions advanced by a group of scientists and engineers call “Science Debate 2008.” Among the 14 subject areas are research, innovation, energy, stem cell research, scientific integrity and space. For a side-by-side comparison of the candidates’ responses visit: www.sciencedebate2008.com.

The National Academies have issued a report, “Science and Technology for America’s Progress: Ensuring the Best Presidential Appointments in the New Administration.” It was sent to both candidates and provides suggestions on how to fill key science positions in government, along with ways to streamline bureaucratic processes. More than 80 highly recognized individuals in the fields of science and technology were recommended as advisors on issues ranging from health care to the economy. For additional information go to: http://www.nap.edu/catalog.php?record_id=12481.

Odds and Ends:

ADA – The House and Senate gave final Congressional approval to the ADA Amendments Act of 2008 (S. 3406), which reverses several Supreme Court decisions that have narrowed the definition of disability under the original Americans with Disabilities Act (ADA). President Bush is expected to sign the bill.

Great Lakes Water Compact – The House approved a bill to protect fresh water in the Great Lakes region by prohibiting almost any diversion of it to places outside the lakes’ basin and requiring the eight states bordering the lakes to follow new conservation standards. The legislation had passed the Senate and is expected to be signed into law by President George Bush. The measure was negotiated by the eight Great Lakes states. Ten years in the making it is intended to ease long-standing fears that states outside the region, or even other countries, could tap into the lakes, possibly deplete them and do long-term damage to their basin’s natural environment and economy. The Compact will generally prevent water’s diversion from the basin except under rare circumstances, and even then only with approval of all eight bordering states – IL, IN, MI, MN, OH, PA, and WI.

Federal Drug Administration - The House Energy and Commerce Committee held a hearing to highlight the failure of a food safety tracking system to catch salmonella-tainted food poisonings in their early stages. Members of Congress and food industry leaders agreed that the system for tracking food-borne illnesses, created by the Bioterrorism Act of 2002, has failed and that a new uniform record keeping system is needed. Meanwhile, Senators Richard Durbin (D-IL), Judd Gregg (R-NH) and Richard Burr (R-NC) introduced a bill to authorize $775 million to strengthen FDA food safety efforts, including increasing the number of inspections; creating a pilot program to trace food-borne illnesses; and setting science-based standards for produce safety. The Senate bill differs from the House FDA reform package in that it does not rely solely on industry fees to fund the increase.

The House voted 326-102 to give the FDA authority to regulate tobacco products. The bill has wide bipartisan support, but Republican leaders and the Bush Administration oppose it, saying the FDA lacks resources to take on the new task. The Senate may consider the bill this fall.

Comings and Goings:

Rep. Gene Green (D-TX) has been named chair of the House Ethics Committee by Speaker Nancy Pelosi. Rep. Green succeeds the late Congresswoman Stephanie Tubbs Jones (D-OH) who passed away unexpectedly in August.

National Institutes of Health Director Elias Zerhouni has announced that he will step down at the end of October after leading the agency for six years. Raymond A. Kingston, NIH deputy director, is expected to serve as the agency’s interim director for the remainder of the Bush Administration.

Ohio 11th Congressional District November and Special Elections: November election – Members of the Cuyahoga County Democratic Party’s executive committee who live in the 11th District named Warrensville Hts. Mayor Marcia Fudge as the candidate to replace the late Stephanie Tubbs Jones on the November 4 election ballot.

Special election - GovernorTed Strickland is responsible for setting dates for a primary and general election for 11th Congressional District voters to select someone to complete the unexpired term of Congresswoman Jones whose current term ends on December 31, 2008. The Governor selected October 14 (primary) and November 18 (general) because those dates already have been designated for elections to replace the late Cleveland City Councilwoman Fannie Lewis, whose Ward 7 is part of the 11th District. Although there is some concern about the costs of these elections and their necessity (since no Congressional legislative days are scheduled after September 26) a 2004 federal appeals court ruling stated that an interim member must be elected no matter the cost or length of time to be served. The state of Ohio will be responsible for the costs of the elections.

THE BUCKEYE STATE

FY2008-2009 Operating Budget Cuts: Citing the effects of the national economic downturn Governor Ted Strickland announced $544 million in state budget cuts in addition to the $733 million ordered in January bring the total to $1.27 billion. Reductions include a 4.75 percent across-the-board cut for state agencies with exceptions for “core priorities” such as the homestead property tax exemption, the two-year tuition freeze at state colleges and universities, state student financial programs and state share of instruction support for public colleges and universities at the Board of Regents. Exemptions also include Medicaid, all General Revenue Funds (GRF) in the Departments of Rehabilitation and Correction Services and Youth Services, among others. With another nine months remaining in the current biennial operating budget many Capitol Square observers are predicting additional budget reductions before June 30, 2009 and a dicey and possibly contentious FY2010-2011 biennial operating budget bill process.

Legislation: Tax credits for college grads – State Representatives Josh Mandel (R-Lyndhurst) and Jay Goyal (D-Mansfield) have introduced bipartisan legislation that they hope will help reverse the trend of college educated young people leaving the state for jobs elsewhere. The legislation would provide graduates who pledge to live in Ohio a nonrefundable state income tax credit of up to $3,000 per year for up to 10 years. The plan would offer tax credits totaling $5,000 for an associate’s degree; $20,000 for a bachelor’s degree; and $30,000 for a master’s degree or higher. Credits would be spread over 10 years, and if graduates weren’t at first earning enough to use the full yearly credit, it could be rolled over within the decade-long window. Graduates would have to stay in Ohio for a minimum of five years or risk having to pay back the money. With few legislative days scheduled between now and the end of 2008 it is difficult to predict whether the legislation will be enacted prior to the conclusion of the 127th Ohio General Assembly.

Prevailing Wage: Governor Ted Strickland introduced new prevailing wage guidelines that become effective October 15. The Governor’s guidance documents were prepared to “clarify the Department of Commerce’s position on when prevailing wage applies to construction projects where there is a combination of public and private funding.” In addition to construction projects the guidelines also address development projects, infrastructure improvements, installation of equipment and environmental remediation. Specifically, the administration highlights the impact of public dollars on:

Infrastructure improvements on public land adjacent to private development.
Infrastructure improvements on private land.
Remediation of environmental hazards, including asbestos and brownfield remediation.
Installation of machinery and equipment.
Multiple building sites, including corporate campuses.

Republican legislators expressed concerns over the Governor’s actions. It is unclear whether Republican lawmakers view the Governor on solid legal ground or could mount a legal challenge.

Summit on Ohio’s Economy: On September 10 more than 1,000 influential business, academic, non-profit, and government officials met in Columbus to hear a critique of Ohio’s struggling urban centers and how they can be restored. The summit was led by representatives from the Brookings Institution and Greater Ohio, a similar non-profit group in Columbus. The two organizations released a preliminary report, “Restoring Prosperity: The State Role in Revitalizing Ohio’s Core Communities,” that they hope will become a national model for urban revitalization. Lt. Gov. Lee Fisher stated that the Ohio is adopting many of the report’s strategies with a number of them contained in a new statewide economic development plan released earlier in the month.

November Election State Ballot Issues: Issue 1, Petition deadlines – The initiative will require individuals or groups seeking to file constitutional amendments, initiated statutes, or referendums to file such petitions not later than 125 days before an election. Currently, petitions for such issues must be filed not later than 90 days before an election for constitutional amendments and initiated statutes and not later than 60 days before an election.

Issue 2, Clean Ohio bond program – Clean Ohio is a $400 million bonds program that will allow the state of Ohio to use such funds for conservation and environmental revitalization efforts. Preservation and conservation of farmland, park and recreation areas, forest, water, and natural resources are among the areas potentially covered under the Clean Ohio program. Clean Ohio would permit funds raised to be used for urban revitalization and environmental clean up efforts in urban areas.

Issue 3, Water and private property protection – This is a constitutional amendment that would provide property protections for landowners for the water under or flowing through the landowner’s land. It vests private property owners and Ohio municipalities and political subdivisions with certain property rights to groundwater and non-navigable waterways situated on and/or under that private property owner’s land subject to certain limitations.

Issue 4, Healthy families act – On September 4 the Service Employment International Union District 1199 and a coalition supporting Issue 4 announced that they would pull the issue from the November ballot. The announcement came about one week after Governor Ted Strickland and Lt. Gov. Lee Fisher publicly stated their opposition to the sick-day ballot initiative. If the proposal had been approved by voters in November, Ohio would have become the first state to require businesses with 25 employees or more to provide seven days of paid sick leave per year to its workers. Business groups referred to the initiative as a “job killer,” while supporters argued that it provides needed paid leave that millions of Ohio workers do not have. The announcement from the Governor and Lt. Governor followed their inability to broker a compromise on the issue.

The initiative may resurface as a federal issue in the next Congress if the Obama/Biden ticket takes the White House. Senator Obama mentioned his support of compulsory paid sick days in his acceptance speech at the Democratic National Convention.

Issue 5, Payday lending – The payday lending industry is making a strong effort to secure enough signatures (241,365 valid voter signatures) that are required to place a payday lender measure on the ballot for the November election. The referendum would repeal a recent law that caps interest rates on payday loans at 28 percent. If the issue is approved, lenders would be able to again charge rates and fees that amount to a 391 percent annual percentage rate. However, it appears that supporters of Issue 5 are likely to fall short in gathering the valid number of signatures required (241,365) to qualify the issue for the November 4 ballot. Note: As of this writing, this issue is not certified to ballot pending final signature review.

Issue 6, Casino gambling/Clinton County – Gambling supporters are making another effort to amend the Ohio constitution to allow gambling in the state. The amendment would permit a casino to be located in Clinton County between Columbus and Cincinnati. The operators of the casino propose that it would be built on a 94-acre site outside Wilmington, OH requiring an initial investment of a minimum $600 million. Taxes of up to 30 percent of the casino’s gross revenue, less gambling payouts, will be collected an distributed proportionately, based on population, to each of Ohio’s 88 counties for the county’s unrestricted use.

Other States:

California – The California State Senate is considering a bill (AB 2296) that would make it a crime to “publish personal information about researchers or their families with the intent to threaten, or to trespass on their personal property in an attempt to thwart their work.” The legislation is a direct response to violence and harassment by animal rights groups against academic scientists in California using animals in their research.

Massachusetts – Bay State residents will vote on a state initiative on November 4 that would eliminate the state income tax. If approved the average taxpayer would save approximately $3,600 annually, while the state of Massachusetts’ treasury would lose an estimated $12.5 billion per year or 45 percent of the state’s annual budget of $28 billion. “Question 1” would phase in the tax elimination over two years, cutting the tax by half the first year and eliminating it the next year. Only seven states have no income tax - Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Comings and Goings:

Cleveland City Councilwoman Nina Turner (Ward 1) has been tapped to serve in the state Senate seat previously held by Senator Lance Mason. Senator Mason recently was appointed to the Cuyahoga County Common Pleas Court.

LOCALLY… Cuyahoga County Government Reform – The Commission on Cuyahoga County Government Reform, a nine member task force, will present recommendations for improving the way county government operates to the Ohio General Assembly and Governor Strickland by November 7.

Cleveland City Councilwoman Fannie Lewis, who had served as Ward 7 Council’s representative since 1980, passed away in August. She was 82. Stephanie Howse, age 29, has been named as interim Councilwoman. To retain the post for the remainder of Mrs. Lewis’ term, which expires at the end of 2009, Ms. Howse will have to win a special election this fall. The top two finishers in an October primary, that may draw multiple candidates, will face off in a November 18 vote.

Terrell Pruitt was appointed to fill the Cleveland City Council Ward 1 seat, formerly held by Nina Turner. Ms. Turner was named to fill the unexpired term of former state Senator Lance Mason.

Cleveland City Charter Amendments on November ballot – There are six Cleveland City Charter amendments on the November 4 ballot. The most controversial of the six is to set City Council ward size at 25,000 people and adjust the number of Council ward seats from the current 21 to as few as 11 beginning April 2009.

Remembering Congresswoman Stephanie Tubbs Jones (D-OH 11th)… Congresswoman Stephanie Tubbs Jones passed away on August 20 after suffering an aneurysm from which she never regained consciousness. A double graduate of Case Western Reserve University (BA 1971, JD 1974), the Congresswoman was in her fifth term and poised to become more powerful and influential when the 111th Congress convenes in January.

The first African-American woman to be elected from Ohio to serve in Congress, she also aspired to become the first African-American woman to serve as chair of the powerful House Ways and Means Committee.

A life-long and tireless public servant Congresswoman Jones was a pioneer for women and African Americans. Her signature personal warmth, big personality, big smile and big hugs were not to be mistaken for a passionate and committed woman, who was not afraid to take on the big and controversial issues. She stood by her party and her political beliefs.

Known as Case Western Reserve’s biggest cheerleader, the Congresswoman was our strongest public supporter. She rarely turned down an invitation from a student group, faculty member, dean, or administrator to participate in University activities or events or to speak with students informally or formally. Her commitment to her alma mater matched her commitment to public life.

We mourn the loss of Congresswoman Stephanie Tubbs Jones as a friend, graduate, our member of Congress, and public servant. But, our sadness is greatest for her son, Mervyn Jones, Jr., and her sister, Barbara Tubbs Walker.

We are grateful for the opportunity to have been a part of Stephanie Tubbs Jones’ life and legacy.

Sources of information for this report include the Association of American Universities, American Institute of Physics, the Chronicle of Higher Education, the Association of Independent Colleges and Universities of Ohio’s updates and reports, newspapers, political and legislative wire services, and others.