Author: Jane Hamsher

  • Tell Earl Blumenauer to Keep His Pledge or Give the Money Back

    Earl Blumenauer (D-OR)

    Now that their scams have all been laid bare, Democratic leadership has resorted to firing on their own troops and threatening to run them all out of office if they don’t vote for the AHIP/PhRMA bailout.

    So, it looks like it’s time to whip.

    Earl Blumenauer was one of 65 members of Congress who pledged to vote against any bill without a public option.

    He’s now using twitter to deride anyone who keeps the pledge he made:

    Health care homestretch. People need to use their “inner wonk,” not outsource analysis to idiot “shouting heads.” Facts are clear.

    Facts. . . yes, they are clear. How about this one?

    Blumenauer_E

    “Progressive only when it doesn’t matter” is Blumenauer’s schitck. In 2007, he signed a letter saying he’d vote against any war funding bill without troop withdrawal provisions. But when the supplemental came up for a vote this year, and he was in a position to actually do something about it, he voted for it anyway. Apparently ending the war is only something to be demagogued when Republicans are in office and there’s no hope of actually following through on your promises.

    Last year, the online community raised $430,000 in gratitude for members of Congress who pledged to vote against any bill without a public option. Earl Blumenauer received $3,230 of that.

    In our recent poll, 90% of our readers thought he should return the money if he doesn’t intend to keep his word. And that 76% of those responding to another survey (10,814) think that Democrats who go back on their pledge should be primaried.

    Call Earl Blumenauer: DC Office (202) 225-4811, OR Office (503) 231-2300. Let us know what you hear:

    * denotes required field

    Write Oregon media and let them know they should ask Earl Blumenauer if he intends to return the money.

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  • Democrats in the House Flee Obama over Health Care

    Today, Dennis Kucinich appeared at a rally with President Obama in Cleveland, despite the fact that the White House sent MoveOn to picket and threaten him if he honors his pledge and votes against the health care bill with no public option.

    But that’s more than you can say for freshman Congressman John Boccieri, a military veteran who is on the GOP’s target list for the fall. He suddenly had to go to a dog-and-pony show in his district and watch a check being presented for a runway extension at a local airport and couldn’t appear with the President.

    Senate candidate Robin Carnahan didn’t have an airport construction check to deliver, but she also had a scheduling conflict when the President came to Missouri to campaign for his health care bill last week. So did her brother, Congressman Russ Carnahan. Ike Skelton couldn’t make it either.

    Similar scheduling snafus plagued congressmen Patrick Murphy, Tim Holden and Chris Carney when Obama came to Pennsylvania last Thursday to campaign. In a state that Obama carried in 2008, suddenly they didn’t snap at the opportunity to be seen with him.

    Why was Boccieri suddenly so consumed with an extension of the local runway? Well, maybe because Boccieri is in a GOP-leaning district, the top of the ticket in Ohio is a disaster for Democrats in 2010, and his well-funded GOP opponent Jim Rennacci is already up on the air with ads slamming Boccieri for voting for health care:

    The reason Kucinich is taking so much heat from the White House is because he’s one of the only Democrats left who can take this vote and survive in the fall. They’re at the point where every vote they pull either has to come from someone who is retiring, or is willing to retire for a fat appointment in exchange for their vote, or they flat-out torpedo the seat.

    The White House is telling people that if they don’t pass this bill, it will be a disaster for Democrats in the fall. That’s abject nonsense — their “fallback plan” for health care doesn’t have the toxic mandate that makes the IRS the collection agency for Blue Cross/Blue Shield, or any of the abortion issues that inflame both pro- and anti-choice groups. And most of the country wouldn’t know the difference over a bill that doesn’t kick in until 2014 anyway.

    But the Democratic leadership in the House and Senate have made the decision to start firing on the troops in the trenches to force them onto a suicide mission. Washington DC has a pall over it as Democrats are forced to make a Jonestown-esque choice between having their own party target them for elimination, or cast a vote that will do it to themselves.

    If Democrats in the House cast this vote, Republicans will take them out from the right, and single payer activists are lining up to run against them outside of the party on the left. They are the most electorally vulnerable, and they will be the sin-eaters for the entire party.

    It’s all come down to threats and intimidation in order to pass the health care bill. It’s all they’ve got left. Because “having the President come and campaign for you” seems to be of dubious value these days — most endangered Democrats are fleeing when the President comes to town.

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  • Progressives Who Don’t Honor Their Pledge: Corporatists in Sheep’s Clothing

    (photo: arimoore)

    Last August, progressive groups, including MoveOn, DFA, and blogs across the country, came together to raise over $430,000 for 65 members of Congress who pledged to vote against any health care bill that doesn’t have a public option.

    Now, every excuse made by the President and Congress for not including a public option has crumbled. MoveOn is demonstrating against Kucinich for keeping that promise, and far from supporting members of Congress who keep that pledge, the unions are threatening them with primaries.

    If George Bush had tried to pass a health care bill that was the worst blow to the right to choose since the passage of the Hyde Amendment 35 years ago, liberal groups would be screaming bloody murder.

    Instead, the natural fiscal constituency of progressive members of Congress — those who should be backing them up for standing for progressive values — are whipping from the right.

    The veal pen groups have become the enforcement arm for sweetheart deals that Rahm Emanuel cut with AHIP and PhRMA. And college students across the country are footing the bill because Larry Summers doesn’t want to tax rich people.

    I was on Ian Masters’ show yesterday, and he asked me what I thought of Dennis Kucinich’s position on health care.

    I said “I find it odd that when it’s down to Joe Lieberman’s one vote, everybody shrugs their shoulders and says ‘oh well, we just have to write the bill Joe wants, because what can you do, one vote.’ And when it’s Dennis Kucinich’s one vote, which represents what 80% of the American people want, it’s ‘let’s crush Dennis Kucinich so we can give Joe Lieberman everything he wants.’ Somehow, the argument keeps switching, so that the corrupt deal that the White House negotiated with the pharmaceutical companies gets passed no matter what.”

    I still don’t know if they can pass this monstrosity of a bill. But if progressives stand down and do nothing while corporate America runs roughshod our institutions and our representatives, no member of Congress will ever have the political courage to stand up against corporate power again.

    Call members of Congress who said they would vote against any bill that doesn’t have a public option. Tell them to keep their promise.

    Tell Diana DeGette and Louise Slaughter to release the letter with the names of 41 members who said they’d vote against any bill that restricts a woman’s right to choose, because this one does.

    And donate to Dennis Kucinich to send a message that the progressive left hasn’t become a completely incoherent tool of corporate America.

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  • Community Colleges Get Screwed for AHIP

    (photo: aussiegall)

    Now we see one of the reasons the Senate is including student loans in reconciliation — they don’t want to tax rich people (as the House does), so they’re stealing the money from community colleges.

    The Senate HELP Committee is currently writing the student loan reconciliation bill that the House has to pass (the House having become completely irrelevant to the democratic process). And all of that amazing $87 billion in savings couldn’t just go to the students and schools that badly need it. They’ve accepted Kent Conrad’s dictum that the lower CBO score be used, and they’re hacking away at it:

    Democrats have had to get their knives out to get the student loan measure’s costs under the $61-billion-over-10-years ceiling. Some of the casualties — like $8 billion for early childhood education, and $4 billion for school modernization — didn’t trouble college leaders a bit, as they quietly opposed using savings from the student loan programs for those non-college purposes all along.

    But some of the other cuts would prove enormously painful. Foremost among them is the apparent excision of the entire American Graduation Initiative, which would pour as much as $12 billion over 10 years into grants and construction funds for community colleges. President Obama has put two-year institutions at the center of his higher education agenda, a major change from previous administrations, and the American Graduation Initiative was designed not just to provide more money to the colleges, but to link the money to a set of quality indicators aimed at increasing accountability demands on them.

    With unemployment soaring, so is enrollment in community colleges. That’s where many minority students who are unable to find work wind up, in order to increase their job skills and qualify for higher paying jobs. Historically black and hispanic colleges would still get money, but that $600 million over the next two years is small change compared to the $11.3 billion for K-12 modernization, early education and community colleges now lost (per the CBO).

    The House health care bill paid for health care reform by taxing the wealthy. But Larry Summers doesn’t like to tax rich people, and the White House doesn’t want to be accused of “raising taxes.” Of course, they could just make up the money by including a public plan — even a weak one would save $25 billion.

    Instead, the most economically vulnerable are having their futures hacked away to pay AHIP a 20% fee for doing nothing in the health care process. And Ben Nelson hasn’t even begun shaking the bill down for Nelnet, JP Morgan and Citigroup.

    Sign the petition — tell the Senate to take care of students, not banks.

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  • Paths of Glory, Act II: The Health Care Bill

    I went to dinner Saturday night at a popular DC political watering hole. I’d never been there before. The atmosphere was so heavy and the mood of the room so strange it was hard to concentrate.

    “It’s Paths of Glory, and these are the trenches,” said my dinner companion.

    I had no idea what that meant.

    “You know, Stanley Kubrick, World War I — the generals know it’s a suicide mission but they don’t care.  They think they might get a promotion so they send the troops in anyway. But the troops won’t go, so the generals start firing on their own men in the trenches.”

    Yep, that was it was it: fear. Icy cold fingers up your back, smell-of-death fear.

    “You mean over the health care bill?  I said.  “Because they’re forcing everyone to sacrifice themselves and take the vote.”

    “Yep.”

    I’d had dinner with another Democratic operative the night before who referred to it as “sati” (where the widow of a deceased Hindu would throw herself on her husband’s funeral pyre, either voluntarily or by force).

    “That’s funny,” I said, “I’ve been calling it ‘Jonestown.’ But “Paths of Glory” — the generals — much more apt.”

    As I recall, in the movie they wind up shooting one soldier for his “cowardice” as a lesson to them all.

    There were a few oily chislers in the restaurant who added a cheap, edgy euphoria to the atmosphere, destined as they were to make a buck off the proceedings.  But the sad, desperate thing about the entire affair is just how low rent it all is.  No robber barons or captains of industry here:  just the errand boys to power who are easily bought for pennies on the dollar.

    If this is the best we can do after the nation pours its collective hope into something, it really is the end of empire.  And everyone in town, at one level or another, seems to know it.

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  • Will the Pro-Choice Caucus Join Ben Nelson to Sell Out Choice?

    illustration by twolf1

    Following the passage of the House health care bill, the outcry against Bart Stupak’s amendment from pro-choice members of Congress was stentorious. Rep. Diana DeGette and Rep. Louise Slaughter co-authored a letter signed by 41 members of Congress, which says quite clearly:

    We will not vote for a conference report that contains language that restricts women’s right to choose any further than current law.

    That seems pretty straight forward   DeGette and Slaughter won’t say who signed the letter, though Jan Schakowsky, Mike Capuano,  Mike Quigley, Carolyn Maloney, Judy Chu and Betsy Markey have all said that they did.

    Jane Harman, Ann Kirkpatrick, Mary Jo Kilroy, Gabby Giffords, Debbie Halvorsen, Stephanie Herseth-Sandlin, Suzanne Kosmas, Carol-Shea Porter, Dina Titus, Rosa DeLauro, Shelley Berkeley, Tammy Baldwin and Chellie Pingree have all raked in big dollars from rich pro-choice donors over the years by pledging to defend a woman’s right to choose with their dying breath. They just don’t want to say whether they signed the letter or not.

    So, does the language in the Senate bill negotiated to make Ben Nelson happy “restrict a woman’s right to choose any further than current law?”  The answer is an unqualified “yes.” Let’s review:

    • It allows states to opt out of allowing plans to cover abortion in the insurance exchanges, a clear violation of Roe v. Wade.  Since some state medicaid programs cover abortion as long as it is paid for with state money, the Hyde amendment (current law) obviously does allow insurance to cover abortion as long as it is paid through a separate non-federal funds.
    • It prohibits insurance companies by law from taking into account cost savings when estimating the costs of abortion care, which raises premiums, thus limiting access
    • It includes “conscience clause” language that protecting both individuals and entities that refuse to provide, pay for, provide coverage for, or refer for abortion.

    Choice is already in grave danger with the current radical Supreme Court majority, and every time Congress tinkers with this, it just creates another opportunity for the Supremes to whittle away or reverse Roe v. Wade.

    The bottom line:  the Senate bill would deal a bigger blow to abortion rights in this country than anything George Bush ever signed into law.

    NOW President Terry O’Neill called the Senate bill “a health insurance bill for half the population and a sweeping anti-abortion law for the rest of us.”

    Planned Parenthood’s Cecile Richards said the Senate language would leave “tens of millions of women without abortion coverage,” and called it “the most significant restriction in access to abortion coverage in the nearly 35 years since the U.S. Congress first adopted the Hyde Amendment.”  She condemned the bill, saying “it is a sad day when women’s health is traded away for one vote.”

    An analysis done by George Washington University’s School of Public Health says “because the amendment reaches the design of the product itself, it extends beyond the Hyde Amendment.”

    NARAL’s called the abortion restriction in the Senate bill a “dangerous provision.  NARAL President Nancy Keenan called it “outrageous”  and said “the language regarding abortion coverage comes at too high a price for reproductive health. Thus, we must oppose this new Nelson language.”

    Good veal pen apparachicks that they are, however, neither NARAL nor Planned Parenthood scored either the House or the Senate bill — making a complete mockery of their entire scorecard system.  The anti-abortion groups certainly did.  I guess Congress knows who means business.

    Put me down with Newsweek’s Sarah Kliff, who says “we hate this compromise.”

    But Nancy Pelosi has said that the language in the Senate bill regarding abortion will not change in the House bill she puts forward on Monday.  And Louise Slaughter, co-author of the pro-choice letter, is proposing a “solution” whereby the House votes to deem the Senate bill “automatically passed” once they pass a “corrections” bill.  So it appears the head of the pro-choice caucus is actively facilitating passage of Ben Nelson’s attack on women’s reproductive rights.

    Despite what Barbara Boxer and Patty Murray said when they told Planned Parenthood and NARAL to get stuffed, the Senate language is not “just Hyde.”  As the George Washington University analysis explicitly states, it’s far worse than Hyde.  Let’s stop pretending that simply getting Bart Stupak out of the picture is suddenly some kind of sweeping victory for choice.

    So I only have one question.

    Will DeGette, Slaughter, Schakowsky and other pro-choice members of the House keep their promise to protect a woman’s right to choose, or will they sell them out so the Democrats can get a “win” on a health care bill that will do nothing until 2014 but send the stocks of unregulated insurance monopolies soaring?

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  • Senate Will Include Student Loan Reform in Reconciliation

    Jesus raises Lazarus, Half Hours With the Bible, New Testament

    No direct comparisons implied (woodcut from 19th C. book, "Half Hours With the Bible, New Testament" via Martin LeBar)

    Count me with Tim Ranzetta — student loan reform was D-E-A-D dead earlier this week, as both Congress and the White House were nervous about losing on the health care bill if student lending was included in reconciliation.

    But last night, Conrad backtracked from the position he’d expressed only that morning. And today, it was announced that student loan reform will be included in reconciliation.

    Tremendous thanks to everyone who signed the petition, made phone calls and other noise about making sure education didn’t get kicked to the curb for another year because Ben Nelson’s biggest donor is Nelnet. And to Meteor Blades, who wrote a diary making it very clear that SAFRA is not only one of President Obama’s very best ideas, it’s also a no-brainer for Congress right now.

    But the battle is not over. When SAFRA was scored by the CBO last year, savings were calculated at $87 billion. On March 5, however, they released a new score, saying the bill will only save $67 billion (PDF). George Miller and Conrad got in a huge fight earlier this week, as Miller wanted to use the earlier CBO score, and Conrad the latter. Conrad evidently won, which means that $20 billion has to be carved out of the bill.

    The Washington Post is reporting that the figure changed because so many schools have already switched to direct lending, anticipating the passage of SAFRA, so the “savings” will now be less. In addition, enrollment has exploded in the wake of high unemployment and so cost estimates are higher. It’s not clear from looking at the rather opaque explanation from Doug Elmendorf what the CBO’s assumptions were. We’re looking over the numbers and trying to decipher what happened.

    Lobbyists for the Wall Street banks who still want their carve-out are hailing the new CBO number, as if somehow paying a bunch of unnecessary middlemen huge fees to do something that nobody needs them to do will somehow make the situation better. In fact, their “compromise” addresses nothing that’s being discussed, and just insures that loans travel through their hands for 100 days before they offload them to the federal government so they can tack on huge, unnecessary fees.

    I suppose this makes sense to someone. But the New York Times is reporting that ex-Clinton aides at the Glover Park Group are “aggressively at work fighting the president’s proposal on behalf of an unnamed client,” so clearly the logic will be backed with the cash.

    Back on planet earth, Ranzetta points out that if Conrad doesn’t back down, what would happen to the current bill in a “slimmed down” version?

    • Will it reduce the deficit by $10 billion as the other bill did (based on CBO scoring)?
    • Will it reduce the income-based repayment percentages from 15% (current) to 10% as proposed by Obama?
    • Does it incorporate the debt swap proposal to allow private loan borrowers to swap into federal loans if they have federal debt capacity available?

    Decisions about these and other issues will determine whether the lobbyists get bought off, or students reap the benefits of the savings. We’ll be working with other organizations to follow it closely and insist that the money goes to students, not banks.

    Courtney Ross of AAUW has more on SAFRA at the Seminal.

    Sign the petition — tell Congress to choose students over banks.

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  • Tell Progressives to Honor Their Pledge: Insist on a Public Option

    Speaker Nancy Pelosi (D-CA) (photo by Orin)

    Today, Dick Durbin says that if the House sends over a public option in their reconciliation bill, he’ll whip for it. But he won’t whip for a public option amendment.

    Which is incredibly chickenshit of Durbin — it once again puts all the blame on the House for the public option’s failure, and accepts none of it himself. In other words, pure Durbin.

    In response, Nancy Pelosi says she won’t include a public option in the House bill.

    As I said the other day when I laid out FDL’s position on whipping the public option, I’m still not convinced they can pass this bill–period. And I don’t particularly want to get everyone riled up to whip on something that may never happen.

    But as a pure matter of principle, after almost a year of blaming its exclusion on a lack of votes in the Senate, there is no way it should die in the House.

    The PCCC has done a great job getting members of Congress on the record as to where they stand, and I agree wholeheartedly with Adam Green:

    Mark Warner, Tom Harkin, Herb Kohl, Claire McCaskill, and other undeclared senators are not going to vote against the president’s top priority, and if Speaker Pelosi refuses to even allow a vote on the public option, than [sic] she killed the public option. She needs to step up.

    If the House is going to put a health care bill to a vote, we should at least be able to see who is going to stab their voters and turn their backs on Democrats on behalf of the insurance companies before the next election.

    Let’s see who’s willing to do that.

    Sixty members of Congress pledged to vote against a health care bill that didn’t have a public option. Others made videos and gave statements.

    See them here

    They need to make it clear to Nancy Pelosi that they will honor that pledge if she doesn’t include a public option in the health care bill.

    Call progressive members of Congress who pledged to vote against any health care bill that doesn’t have a public option, and tell them to insist on its inclusion in the House bill. Then let us know what they say.

    Call Now

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  • Durbin and Reid Whipping Against Public Option

    sincerity

    Remember all those wonderful list building exercises from Harry Reid and Dick Durbin last year? You know, the ones where they told you how much they supported the public option, and snagged your email in the process?

    Because I sure do. Here was Durbin’s:

    The question is no longer if we will have some sort of public option in the final health care reform bill, but instead what form it will take.
    []
    If any member of the Democratic caucus thinks no one will notice the absence of a robust public option in the final health care reform bill, they have another thing coming.

    Harry Reid even had Google ads:

    Want The Public Option?
    Reid’s Fighting For It. What Have You Done To Help? Step Up Now!
    HarryReid.com/PublicOption

    Ah, memories.  Well, that was then.  From Roll Call:

    Senate Majority Whip Dick Durbin (D-Ill.) said Wednesday that leaders will have to ask rank-and-file Democrats to vote against health care amendments they may support once a reconciliation bill comes to the Senate floor.

    “We have to urge members to stick with the basic bill,” Durbin told reporters. “And we know Republicans are going to offer a ton of amendments as they always do and we know that if an amendment is adopted, it stops or slows down the process. We have to get this done and move on to more jobs bills.”

    But Harry Reid doesn’t want to be left out of the party.  Also from Roll Call:

    Jim Manley, spokesman for Senate Majority Leader Harry Reid (D-Nev.), said leaders will ask their Members to defeat popular amendments even though they sympathize with liberals’ desire to push proposals that, during last year’s Senate floor debate, did not have the 60 votes needed to overcome a filibuster. Reconciliation rules require only a 51-vote majority to prevail.
    “Certainly there are plenty of Members who have ideas to improve the bill,” Manley said. “The difference is … Republicans will be offering amendments to take the bill down.”

    I get it.  Now that they don’t have the 60 vote excuse any more, it’s the REPUBLICAN amendments they really need to keep in check.  Never mind that there aren’t 51 Republicans.  As I recall, this was the same fabulous thinking that kept all amendments off the floor in the House bill — except Bart Stupak’s.

    And if they have to kill student loan reform to do it, Durbin’s more than willing:

    “If the addition of the student loan — ending the student loan subsidy to big banks and Sallie Mae — helps us pass health care reform it should be included. If it hurts us, then we can’t include it,” Durbin said.

    Fuck you, kids.  That $4.7 billion that was going to go to students and state funded colleges struggling to stay afloat?  Well, Sallie Mae gets another private jet.  Or golf course.  You just have to wait until next year, when there’s another shot at reconciliation, since the lobbyists have bought off so many Senators already, and sadly, there just aren’t 60 votes.

    Sign the petition — tell the Senate to pass the damn student loan bill NOW and just for once say “no” to Citibank and JP Morgan.

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  • Do Conrad and Durbin Just Love Banks, Or Really Hate Students?

    Actual photo, one of Sallie Mae's corporate jets: Model IAI-1125A Astra SPX, reg #N188AK (see ID on right engine)

    The push by lobbyists of Citibank, JP Morgan, Sallie Mae and other student lenders to kill student loan reform is working.

    Kent Conrad is trying to keep the President’s plan from going through reconciliation this year, which means it can’t pass for another year — and guarantees that the Wall Street banks can keep carving out their billions in annual fees.

    Says Tim Ranzetta over at Student Lending Analytics, “Hmmm…the Democrats are opposing their own party’s bill.”

    From the New York Times:

    Provisions in a budget reconciliation bill must meet budget targets for reducing the federal deficit. Mr. Conrad said the education bill could no longer meet that requirement because the projected savings from ending the payments to private student lenders had decreased, according to a recent cost analysis by the Congressional Budget Office, while the cost of expanding Pell grants had grown. As a result, he said the bill as currently written would no longer reduce the deficit.

    The House bill was projected to save $87 billion over 10 years and would have spent $87 billion on Pell grants and other education initiatives. Mr. Reid’s office said a more recent estimate showed the bill would increase future deficits by about $36 billion.

    Yes, the new CBO score projects lower savings. Why would that be? Because so many schools have already switched to direct lending since SAFRA passed the House, and the savings are already being achieved, per the Washington Post.

    That’s why George Miller and others are (rightly) asking Conrad to go with the old CBO score. For purposes of measuring future savings, rational people would think that if the program is already saving money, that means the claims about cost savings are true, and Conrad wouldn’t penalize students and colleges for that.

    But, Conrad doesn’t want student loan reform to pass. Why? Well, because the student lending industry has jobs in North Dakota. Fifty-seven, to be exact. Blanche Lincoln, Jim Webb, Mark Warner, Tom Carper and the Nelson twins are helping him, because they’ve got jobs in their states too. From companies with deep pockets, private jets and personal golf courses to keep up.

    According to the Wall Street Journal, Dick Durbin “said Tuesday that the loan package would probably be scuttled unless it helped build support for the health-care bill.”

    So how are these Senators valuing jobs in their states, relative to the number of students in college who would be affected by this bill? Good question. Let’s look:

    Senator State Industry Jobs Undergraduates
    Blanche Lincoln AR 92 84,234
    Warner, Webb VA 833 266,589
    Tom Carper DE 31 174,002
    Ben Nelson NE 891 72,648
    Bill Nelson FL 1210 519,768
    Dick Durbin IL 1383 428,713
    Kent Conrad ND 57 31931

    But, students aren’t sucking up government money to buy private planes for themselves, so they don’t have all that lobbying cash to throw around.

    As I wrote earlier, SAFRA would not by any means eliminate all private student lending jobs — only the origination jobs, which represent a small percentage of those in the industry. Because Sallie Mae had to bring 3500 jobs back to the US in order to qualify for servicing contracts on the government’s direct loans, as Dave Dayen noted, there’s a good possibility that SAFRA would mean a net gain of jobs in the student lending industry in the US. And that doesn’t factor in the number of jobs saved or gained in education as a result of the $4.7 billion that would go to colleges across the nation in 2010 alone.

    So why are these Senators ready to kill this opportunity to pass student lending? Well, because one way or another, the big banks always win. They carved out a sweet and completely unnecessary business for themselves by lobbying Congress for pennies on the dollars, and guess who gets to pick up the tab?

    You. Me. Anyone who’s ever had a student loan. To see how private student lenders jack up fees and padded loans so people wound up paying twice the amount of the original loan, see David Brancaccio’s piece on PBS Now.

    Enough with Wall Street banking lobbyists. They’re destroying the country and now they want to scrap the higher education system so they can afford their private planes.

    Jet fuel doesn’t pay for itself, you know.

    We’re going to take out ads in student papers in the above states, and those of other Senators who have been active in blocking the bill, letting students know how their interests are being sacrificed to Wall Street. If you’d like to donate, you can do it here.

    And sign the petition — tell Congress to pass student loan reform now. Not next year.

    (photo from Richard Eskow, Nightline)

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  • Yes, We’ll Whip On Health Care … If It Ever Comes To That (But I Doubt It Will)

    I don’t believe in getting people worked up when it’s not necessary. Energy is a finite resource, and when you don’t have a lot to work with anyway (especially relative to the opposition), the key to successful organizing is selectively applying carefully targeted effort to achieve maximum impact.

    It’s like the difference between hitting your shoulder or your forearm and hitting your funnybone with an equivalent amount of pressure. The first two you might barely feel, but the third sends you through the roof.
    When you send the DCCC into a month-long freak out with a few regional polls that anticipate the country’s mood on health care a week before the Coakley election, or 42 members of Congress insert language into the Congressional record at the behest lobbyists to counter a couple of blog posts, or Nobel prize winning NYT columnists are called into service to refute you, you know you’ve hit the sweet spot.

    And it’s amazing what can be achieved when you stake out your ground early and just keep standing there.

    Last June 23, we stated our position on health care reform (see the video above, from June 27). We said were going to ask members of Congress to commit to vote against any health care bill that didn’t have a public option. It wasn’t an original thought — we were simply echoing an effort that was already going on within the progressive caucus.

    We said “okay, you gave up on single payer, so let’s agree to draw this line here. Because right now, everybody says the lobbyists shouldn’t be able to drag Congress over it. And when this is all over, we’ll see how well everyone’s words match up with their actions.”

    I asked everyone who works for FDL for their opinion before we started. Everyone wholeheartedly supported the effort. And the only people who were upset within the larger FDL community were the single payer folks who didn’t think it went far enough. But it was never meant as a policy prescription, it was rather a firewall against something that was almost universally acknowledged at the time to mean that health care reform had failed and had turned into a bailout for the medical industrial complex. They thought that the line should be drawn much sooner. But it was the difference between kicking a field goal from the 70 yard line vs. the 50 yard line. One might be possible — the other simply wasn’t.

    (As a side note, Ryan Grim recently asked me if I’d do anything differently if I had it all to do over again. I told him that I thought his story on the PhRMA deal memo was the single most important piece of reporting in the entire health care debate, and that its impact was profound. If I’d known what was going on from the start I would have run the campaign against the PhRMA deal, but in mid-August when it first appeared it looked like we were too far down the road on the public option to switch campaigns. Nobody knew the process would stretch out this long. If I could do it all again, I might have switched to breaking up the PhRMA deal.)

    Anyway, when I was flying home last year from Netroots Nation, I sat with Kevin Drum. I’ve always had a good relationship with Kevin since I invited him to the first Kobepallooza in 2005. We talked about health care and I said said I didn’t think health care was worth passing if it included a mandate to buy private insurance, but not a public option. He thought it was. But we both knew then where we would wind up. Neither of us has changed our position since then.

    Kevin continues to be a firm advocate for me changing mine:

    In absolute terms, Jane may not represent a huge number of people or a vast amount of money, but she certainly seems like the linchpin of a disaffected left that could easily represent the difference between success and failure for a bill that’s likely to come down to one or two votes. Speaking for myself, I sure wish she could look past the disappointments — most of which were sadly inevitable — and instead focus all that energy on the big picture of what the Democratic healthcare bill means both for real people right now and for the likelihood of further reform in the future.

    Our position has nothing to do with disappointment, disaffection or disillusionment. It was a clear policy position staked out in June of 2009 and reiterated for the past 9 months. Subsequently, on July 31, 60 members of Congress signed a letter agreeing to vote against any bill that didn’t have a public option, and the response was blogospheric-wide cheer that raised $430,000 in August in support of that commitment.

    Many people who supported that effort at the time have now decided that we should change that position, because they have moved on. And they all too frequently mischaracterize our efforts in order to counter them, deriding them as “tantrum-throwing,” “anti-health care reform” or “marginal.”

    Well, to the extent that we’ve had any impact at all, it’s due to the fact that there is widespread distrust of the Senate health care bill. There’s nothing “marginal” about a position reflected by 48% of the public who want Congress to “vote against a health care bill similar to President Obama’s” while only 43% want them to vote for it, per Gallup. Support drops further in the Rasmussen poll when the question doesn’t include the President’s name — 53% oppose the bill and 42% support it.

    A small group of pundits appear to have misled themselves into believing that the opinions they hold, which echo those of a self-interested DC political class, are widely reflected by the public.

    If that was true, Martha Coakley would be a Senator.


  • Student Lending and the Myth of “35,000 Lost Jobs”

    (based on photo by Toban Black)

    Student loan lobbyists have been distributing a memo around Capitol Hill, with the misleading claim that if the FFEL program is eliminated in favor of direct lending, 35,000 jobs will be lost. The claim has been repeated in Time, The Hill, the National Journal and the New York Times, just to name a few.

    Read the memo here.

    In fact, there are only 30,000 people employed in the entire industry, which includes three different sectors: origination, guarantee agencies and loan servicing. The number comes from a survey conducted by the National Council of Higher Education Loan Programs — an association for student loan companies. The only sector that would be replaced entirely by direct lending is origination, the least labor-intensive of the three. According to Ben Miller at the Quick and the Ed:

    Loan origination in its most basic form is the process of obtaining the money for student loans and transferring those funds to borrowers or to their institutions. This is a very inexpensive activity. According to information from the U.S. Department of Education, its complete cost of originating a Direct Loan last year was around $5.50. That figure includes around $1.50 in administrative and other expenses.

    When you compare that with the $75 per loan that the student lenders are currently being paid for loan origination under ECASLA, you get an idea where the savings in SAFRA are going to come from.

    Servicing jobs would actually increase, because private companies are being awarded contracts to service all of the direct loans made by the government. Nelnet (Ben Nelson’s biggest donor) saw their servicing revenues increased 13% in 2009 as a result of a contract they won to service student loans for the Department of Education, and their stock rose 6% on the news.

    And most of the jobs in the guarantee agencies (roughly 4000-5000) are being saved courtesy of money stipulated in the SAFRA bill itself.

    Tim Ranzetta of the independent Student Lending Analytics estimates that more realistically, “the number of U.S. based jobs related to federal student loans is likely to range from a net increase of 300 jobs to a net loss of 4,750 over the next several years.” Pedro de la Torre at the Nation puts the number “between 170 net US jobs lost under the worst interpretation, and 1,870 US jobs gained under the best.”

    Whether the jobs on the origination side are even in jeopardy is open to speculation. Sallie Mae says that 2,000 of their 8,000 employees may lose their jobs, but they are also bringing 3,500 jobs back to the US in order to qualify for the servicing contract on direct loans they were recently awarded. Citibank, the second biggest student loan originator, recently reassigned 5% of its loan origination and servicing employees (43) to the company’s credit card business rather than laying them off. Citi CEO Vikram Pandit said “whether or not the government makes the loan, somebody needs to process them, and we’re doing that right now.”

    None of these estimates factor in the jobs that would be saved or created by money going to state education programs with the passage of SAFRA.

    Ranzetta has done a series of posts on the true jobs situation. You can read more here, here, here and here.

    The bottom line: job losses in a tough economy are nothing to treat lightly, but the claims made by lobbyists don’t hold to close scrutiny, and the jobs impact must be weighed against the number of students currently enrolled in each state if money that could be going to schools is instead propping up a costly and unnecessary industry that is surviving only because of government subsidy.

    Find out more about the Students, Not Banks campaign and sign the petition.

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  • FDL Launches “Students, Not Banks” Campaign

    Photo of March 4 demonstration at SFSU by Steve Rhodes

    Today, FDL launches its Students Not Banks campaign, with a petition calling on Harry Reid, Nancy Pelosi and members of Congress to pass student loan reform quickly through reconciliation.

    One of President Obama’s most ambitious plans for both education and the budget was the transition from a system of government subsidized student loans using bankers as middle men to direct student lending. But as The Hill notes this morning, the Senate can only move one reconciliation bill until they pass a new budget resolution. If they try to “fix” health care and don’t pass student loan reform at the same time, it will be another year until they can take it up.

    Colleges across the country that are already slashing programs and hiking tuition in the wake of state budget crises. They desperately need the $4.7 billion that student loan reform will bring to them in 2010 alone.

    Background

    In September, the House passed H.R. 3221, the Student Aid and Financial Responsibility Act (SAFRA). It put an end to private lending, which the Congressional Budget Office has said will save $87 billion over 10 years.

    Anticipating that they might have a rough time getting 60 votes in the Senate, the White House pressed Harry Reid to include student loan reform under the 2009 reconciliation instructions, just as they did health care reform. So SAFRA only needs 50 votes to pass the Senate. But that also means that when the Senate deals with health care reform, they must also deal student loan reform — or it gets put off until the next year’s budget reconciliation.

    Colleges across the country can’t wait another year for relief. On March 4, there were student demonstrations in 30 states — 100 in California alone — protesting tuition hikes and program cuts.

    Enter the Lobbyists

    JP Morgan's Jamie Dimon made $17 million in 2009

    Tony Podesta, Jamie Gorelick and other lobbyists working on behalf of the big student lenders such as Sallie Mae, Citicorp, JP Morgan and BofA, want to kick the can down the road. Working through Senators like Blanche Lincoln and Mark Pryor, they claim that moving to direct student lending would be too chaotic before next year — which coincidentally happens to guarantee the student lenders another year and $8.7 billion in government-subsidized profits in “middlemen” fees.

    But the government’s Direct Lending program is already up and running at the colleges that are responsible for 96% of all the student loans in the country, and originated 26% of all federal student loans last year. The Department of Education has a program ready to make the switch, and collges will be able to use the same on-site system currently used to administer Pell Grant scholarships.

    Now that most student lenders are immediately selling the bulk of their loans to the government anyway, the need for their services as originators is questionable at best. Sallie Mae originated $21.7 billion in government subsidized loans last year — but also sold $20.5 billion in loans to the government. The GOP claim that the student lenders perform an important function by using their own money and sparing the government’s resources has long since ceased to be true.

    Furthermore, the “Sallie Mae compromise” being pushed by lobbyists — which Bob Casey recently submitted for a CBO score — would have the government buy up all of the loans that lenders originate within 100 days. (See Stephen Byrd’s Five Reasons To Opppose the Community Proposal.)

    So what is the private student lending industry doing for their $8.7 billion a year?

    Well, Sallie Mae used their government money wisely: they spent $3.48 million on lobbying in 2009, and $3.2 million in 2008 to protect their sweet deal. Industry PACS and employees also made $2.1 million in political contributions.

    They’re also really good at jacking up penalties and fees before they sell loans in default to the government, often doubling the amount of the original loan — which students are then on the hook for. (See David Brancaccio’s excellent program on forbearance for Now PBS.)

    And according to the New York Times, “President Bush’s budget reports that in 2006 for every $100 lent by private lenders, the cost to the government of subsidies, defaults and other items was $13.81, while the same amount lent through the direct loan program cost the government $3.85.”

    And then there’s the much-touted “default aversion” services they provide. But as Ben Miller observes, “default rate among students already receiving these services in the FFEL Program, is much higher than students in the Direct Loan Program that do not get this support.”

    The Fictional 35,000 “Lost Jobs” Claim

    In addition to the claim that a switch to direct student lending would be too “chaotic,” lobbyists are fear-mongering about 35,000 job loss — a figure the Hill article quotes.

    But as Pedro de la Torre writes in the Nation, that figure comes from a survey conducted by the National Council of Higher Education Loan Programs — an association for student loan companies. The estimate claims that there are 30,000 jobs in the entire industry, and then throw on another 5,000 in associated jobs for good measure.

    “Rather than indicate expected job losses, the survey reflects the number of individuals employed by FFEL organizations,” writes de la Torre. “No one, not even the lenders, expects that all the people currently employed by a participating lender will lose their job.”

    Tim Ranzetta of the independent Student Lending Analytics estimates that more realistically, “the number of U.S. based jobs related to federal student loans is likely to range from a net increase of 300 jobs to a net loss of 4,750 over the next several years.” Pedro de la Torre puts the number “between 170 net US jobs lost under the worst interpretation, and 1,870 US jobs gained under the best.” And that does not factor in the jobs that would be saved or created by money going to state education programs with the passage of SAFRA.

    Student lending reform could have passed the Senate long ago, but because it had to wait on health care, the lobbyists have had plenty of time to chip away at the Senate and make inroads for their “compromise,” which would carve out billions to preserve their role as expensive and unnecessary middlemen. In addition to Lincoln and Pryor, they are targeting Bob Casey and Arlen Specter of Pennsylvania, Ben Nelson of Nebraska, Tom Carper of Delaware and Tim Johnson of South Dakota — as well as others from states with powerful student lending interests. The complete list can be found here.

    If SAFRA passes, many of the savings that result from this transition will immediately begin to flow to programs like early education, K-12 and community college reconstruction and modernization, and ensuring that more students graduate with the skills they need to perform high wage jobs in high-demand industries. Starting in 2011, SAFRA will also increase both need-based Pell grants and Perkins loans.

    Nancy Pelosi and Harry Reid need to act quickly to pass a reconciliation-friendly version of SAFRA through the House that will meet the Byrd rule, so that the Senate can pass it along with any other bills in reconciliation. Thankfully, this means the ACORN provision goes bye-bye.

    The Students, Not Banks campaign will feature a petition to Harry Reid, Nancy Pelosi and members of Congress, asking them not to forget about student loan reform this year.

    It will also focus on calling wavering Senators, asking them to commit to supporting students — not bankers. Students and educators from across the country are invited to blog on FDL’s reader blog, the Seminal, about what is happening to their schools and their communities in the wake of the budget. These diaries will be featured on FDL’s front page.

    Find out more about the Students, Not Banks campaign and sign the petition.

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  • Massa Says He Was Forced Out over Health Care Vote, Blames Rahm

    For a few more hours… (photo: brmurray)

    On his radio show this weekend, Eric Massa asserts that he was railroaded out of office by the Democratic leadership because of his refusal to vote “yes” on the Senate health care bill. He says “Rahm Emanuel is son of the devil’s spawn…He is an individual who would sell his mother to get a vote,” and that he may rescind his resignation:

    “Mine is now the deciding vote on the health care bill,” Massa, who on Friday announced his intention to resign, said during a long monologue on radio station WKPQ. “And this administration and this House leadership have said, quote-unquote, they will stop at nothing to pass this health care bill. And now they’ve gotten rid of me and it will pass. You connect the dots.”

    I have no idea what the ethics charges are against Massa, or whether they are valid. But what has seemed clear from the start is that Steny Hoyer and others did not waste the opportunity to show Massa to the door.

    Massa was one of 39 Democrats to vote against the health care bill in the House the first time around. After it was announced that Nathan Deal would retire but would hang onto his seat through the health care vote, the Democrats needed 217 votes to pass the Senate bill. But leadership was having a hard time coming by those votes, and with Massa’s resignation, that number drops to 216.

    Hoyer released a statement to the effect that he had been informed of the complaint the week of February 8, and told Massa’s staff that they had 48 hours to bring it to the attention of the Ethics Committee or he would do so himself. “Within 48 hours, Mr. Hoyer received confirmation from both the Ethics Committee staff and Mr. Massa’s staff that the Ethics Committee had been contacted and would review the allegations,” according to Katie Grant, Hoyer’s spokeswoman.

    On the radio, Massa claimed that Hoyer is lying: “Steny Hoyer has never said a single word to me, at all, ever, not once. Not a word. This is a lie. It’s a blatant, false statement,” Massa said.

    Totally aside from any merits of the ethics charges against Massa, recall that Norm Dicks, Jack Murtha, Jim Moran and Roland Burris all had their ethics charges dismissed in December. And then quelle suprise! Roland Burris, who had been threatening to withhold his cloture vote over the Senate bill without a public option, instantly became a convert. The rest were all safely in the “yes” column in the House. You could pretty much eat live babies on TV and get your ethics complaint dismissed if you were ready to play ball and vote for PhRMAcare.

    So, why has Hoyer been so coy about Massa until now? If Massa’s actions really were so scandalous that he needed to resign immediately and were deserving of “Mark Foley” comparisons, why didn’t Hoyer take action when he first heard of them a month ago?

    There are a lot of inconsistencies in everyone’s stories and it’s hard to know who did what when. But it doesn’t look like Massa’s position on the Senate bill did him any favors with leadership.

    More on the interview from Dave Dayen.

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  • Lynn Woolsey: Closing Barn Doors Since 1993

    Lynn Woolsey writes an op-ed in Roll Call today on her commitment to a public option, pandering to liberals who would indeed have to be “f*#king re#!rds” for it to make any sense. It comes on the heels of her public announcement that she will break every single pledge she’s ever made to vote against a health care bill without a public option.

    It’s a paean to the importance of said public option, but the kicker is at the end:

    Piecemeal tweaking of the health insurance system will not address this growing problem. We need to reform our health care system, and the public option must be included.

    I will fight to include the public option in the final version of the health care reform legislation.

    If it is not included, however, it will rise from the dead once again.

    The day after the health care legislation is passed, I will introduce a bill calling for the public option.

    Rep. Lynn Woolsey (D-Calif.) is co-chairwoman of the Congressional Progressive Caucus.

    Really? Wow. That is just brave and amazing, Lynn. You’ll introduce a bill that has absolutely zero chance of passing? That is about six degrees dumber and less convincing than anything Harry Reid ever tried.

    And you really think there are people out there who will kick that football?

    Let’s pretend for a minute there’s anything of value in a public option by itself. It was always a half-assed measure, a pre-compromise made by you and others in Congress who professed to be supporters of “single payer” but somehow couldn’t find their way to make the most efficient and fiscally responsible approach to health care part of the conversation. It was important to have a public option included in this health care bill to keep it from being quite so big of a ripoff for taxpayers and a little less of a boon to the insurance companies, not to mention the only thing that stood as as a barricade to outright fascism (yes, now that the bill can’t pass and images of brownshirts and swastikas and marching Nazis won’t derail the conversation, we can call it what it is — because that is the textbook definition of forcing citizens to buy the unregulated products of private companies that have been granted monopolies).

    But let’s say for the sake of argument that a “public option” really is the cat’s meow. Is anybody stupid enough to think that some bill you introduce as a face-saving measure the day after you cast the only vote that matters stands any chance whatsoever of passing? Do you understand the political process, Lynn? All that business about a bicameral legislature, those old dudes in that other big room in the Capitol? They call it the “Senate.” Let’s pretend (again) that you manage to get your pre-compromised (again) bill through committees and through the House.

    How exactly do you plan to surmount the Senate problem, the one that is preventing a public option from being included in this bill? You know, the one where they say there aren’t 50 votes for a public option now?

    Does it strike you that this is still going to be an impediment when your fabulous brand spanking new “public option” is introduced? The day after you fully plan to cast the only meaningful vote making it irrelevant?

    Did anyone from your staff try to stop you from publishing this?

    I can’t tell from afar whether you think we’re all “f*#king re#!rded” enough to buy this, or if this actually makes sense to you and that monicker is more accurately applied elsewhere. But it doesn’t really matter.

    Your complete contempt for the political process, and the public’s understanding of it, is without parallel.

    Remember this?

    It’s your signature. On the July 31 letter, pledging to vote against any bill that doesn’t have a public option. And you’ll never be able to blot out the memory of it. That’s the beauty of the internet — it will always be there, for anyone with the power to Google.

    It’s been a profound experience watching Bart Stupak actually fight for something he believes in, versus your leadership on health care.

    You need to step down as the co-chair of the Progressive Caucus, Lynn.

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  • Lynn Woolsey Should Resign as Head of the Progressive Caucus

    Lynn Woolsey says she’s a definite “yes” vote on the Senate health care bill. Even if it lacks a public option. Despite the fact that it’s the biggest blow to a woman’s right to choose in a generation, and may come at the price of a stand-alone vote that allows Blue Dogs and ConservaDems to join with Republicans and roll them back even further in order to get Bart Stupak’s support.

    Any ability for progressives to negotiate, to achieve meaningful concessions, to exert their influence and make the bill better just disappeared.

    It’s time for Lynn Woolsey to resign as the head of the Progressive Caucus.

    Woolsey shares the job of Co-Chair with Raul Grijalva. Throughout the health care battle, Grijalva has shown steadfast leadership even when things got tough. Starting in the early summer of of 2009, he began working with Jerrold Nadler behind the scenes to whip members of Congress to vote against any bill that did not have a public option.

    We joined that fight on June 23, but without Grijalva’s leadership and his consistent willingness to stand on principle — even when he was being pilloried as a “monster” for doing so — we’d all be signing checks to Wellpoint right now while PhRMA was popping champagne corks.

    Woolsey was certainly part of the fight for a public option, co-authoring a letter on June 5 with Grijalva outlining the health care principles of the Progressive Caucus. And here’s a video from June where Woolsey says she will insist on the inclusion of a public option:

    Woolsey:

    “Oh I will vote against anything that does not include … and it’s got to be real. I mean, you can call it anything you want … I believe there are enough of us, among the 120 in the tri-caucus and the progressive caucus, that can stop any votes…. Any health care reform that does not include a strong, robust public option for all Americans will not be health care reform.”

    Woolsey then commenced a petty battle for control of the progressive caucus (and the public option campaign). She held a press conference on June 24, claiming to represent 120 members of the quad caucus who would vote against any bill that did not have a public option:

    Rep. Lynn Woolsey of California, co-chairwoman of the Progressive Caucus, said the groups’ statement was unusual. Typically, leaders of the caucuses do not publicly challenge their party leadership, preferring to work behind the scenes to win concessions in legislation, she said.

    “What we’re telling you this time: it’s different,” she said. “Not that we’re going to vote with Republicans. But if reform legislation comes to the floor and doesn’t include a real and robust public option, we will fight it with everything we have.”

    Her statements today reflect absolutely no consciousness that she ever said anything like this, or was in any way in a leadership position on the issue. But that has been the way Woolsey has operated throughout the health care campaign.

    When we began our whip count in late June it quickly became evident that contrary to Woolsey’s assertions, not all 120 members of the quad caucus agreed on the need for a public option. When we asked that individual members of Congress to go on record and state their personal beliefs, Woolsey got angry that our efforts to get people on the record might demystify a brilliant campaign that allowed members to hide anonymously underneath an umbrella that gave them “strength in numbers.”

    On July 9, after the Blue Dogs said they had the votes to kill the health care bill, Woolsey announced — apparently unaware of the irony — that she now had 60 votes to vote against a bill without a public option. Where did the other 60 votes suddenly go? Well, she didn’t say. I wrote “If Lynn Woolsey’s got 60 votes, I’ve got leprechauns in my laundry room” and demanded that she name names. Because if there’s one thing we learned from the supplemental battle, it’s that a member who won’t even publicly commit to a position is certainly not going to go to the mat for it.

    A week later, an “internal whip list” was leaked by Woolsey’s office. It was now down to 50 names. What happened to the extra 10 names Woolsey said she had the week before? Well, they seemed to have magically disappeared too.

    We began calling all 50 offices. We could not get one member of Congress to confirm that their name was validly on that list.

    Woolsey’s strategy, her theatrics, her leadership on health care devolved into a colossal joke. Nobody took her seriously. Nothing she said ever turned out to be true, and any thinking person would rightly conclude that any threat she made was idle. She was incapable of commanding the respect of the Progressive Caucus, and it became clear as time went on that her lack of leadership was an enormous problem when it comes to organizing progressives in the House who now had the opportunity to exert real power.

    Members of the Progressive Caucus, however, realized that people were laughing and it was time to “put up or shut up.” And so 60 members finally signed their names to the famous July 31 letter to Nancy Pelosi and Henry Waxman saying they would vote against any bill that didn’t have a public option – tied to Medicare reimbursement rates.

    Now, fighting for Medicare reimbursement rates as a cost-control measure was important, but anyone with the ability to Google could figure out that there was long-term opposition among Democrats from rural districts sufficient to take the health care bill down over it. It’s one thing to fight for something, it’s quite another to draw a line in the sand you know you’re fully prepared to step over. But Woolsey led many members of the caucus to demand its inclusion this in the letter, which was ultimately used undermine the public option fight down the line.

    Predictably, they gave up the fight on Medicare rates the next day. It would re-emerge as an issue later in a watered down “Medicare Plus 5″ version, but mostly as a face-saving measure I think. It never had a serious chance.

    Nonetheless, online supporters were delighted that progressives were taking a stand. It wasn’t much of a political risk, since the public option was something that 80% of the country wanted. But they showed their support by donating $430,000 to the members who were willing to commit to vote against any health care bill that didn’t have a public option. Of those, 1734 people donated $5,613 to Lynn Woolsey.

    Is she ready to give that money back if she goes back on her promise to vote “no” on any bill that doesn’t have a public option? Because a poll determined that 90% of our readers think that she should.

    Furthermore, 76% of our readers think that members of Congress who go back on that pledge should face primary challenges (the filing deadline for California is March 12). And a full 82.3% think that anyone who votes to restrict a woman’s right to choose, as the Senate bill does, should face a primary challenge too.

    Woolsey has been inconsistent and muddled throughout the health care fight, and her leadership non-existent. And now she’s ready to capitulate to the Senate bill. Really? Here she is in November when the Senate bill passed:

    I was very relieved on Saturday night when the Senate had the 60 votes. Now, the games begin. If the House position is to take what the Senate did and capitulate to it, then they have the wrong idea about what the House of Representatives is going to do.

    While Woolsey has been willing to take a progressive stand on issues over the years, she risks nothing for doing so. She’s in a safe Democratic seat, from a district with a D+23 PVI. It’s full of progressive, pro-choice Democrats who have donated to her campaign since she first took office in 1993, and she’s be in more political trouble if she didn’t take those positions.

    I understand that the health care bill will probably fail because of its own inertia, the search right now is for a scapegoat to blame it on and no Democrat but Bart Stupak really wants to have that honor. But there are certain principles that someone who calls themselves a progressive leader should not be cavalier about, and a woman’s right to choose is one of them. As Scarecrow wrote here in December, the Nelson language in the Senate bill was written to tee up a Supreme Court challenge to Roe v. Wade.

    That is unacceptable.

    Lynn Woolsey’s inability to effectively lead the Progressive Caucus represents a tremendous problem in the House. She inevitably drags any organizing attempt into chaos and petty bickering, and her idea of “leadership” is issuing a symphony of idle threats she never follows through on that reduces the caucus to a laughing stock and renders the entire caucus ineffectual.

    Woolsey has become a major impediment to effective action on the issues she cares about the most. The failure of progressives in the House to achieve meaningful concessions on single payer, or the public option, or prescription drug price negotiation, or any other progressive principle is largely due to her ineffectiveness. She should step down as the co-chair of the Progressive Caucus.

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  • Blanche Lincoln’s New Ad Says She Didn’t Vote for Bank Bailout – But She Did

    Blanche Lincoln’s new Arkansas primary ad is, as BT says, so politically tone deaf it’s hard to imagine anyone thought it was a good idea. In it, she tries to distance herself from all the partisan bickering in DC, and says “I voted against giving more money to Wall Street.”

    But Blanche Lincoln voted for TARP in 2008. . . Bush’s TARP.

    Repressed memory, maybe?

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  • AP’s 10 Phantom Health Care Votes Keep Dwindling

    As “evidence” that the House has the votes to pass the Senate’s health care bill, the AP wrote an article about 10 Dems who voted “no” the first time who now might be wiling to vote “yes.”

    I’m sure many laughed as hard as I did at the suggestion that those who didn’t want to answer were “wavering” over what Ruth Marcus rightly characterized as a “career ender” vote. While it’s perfectly predictable that those who are retiring (Tanner, Gordon and Baird) would switch their votes, I figured others like Walt Minnick and Suzanne Kosmas will flip about the time pigs fly.

    In 34 states, lawmakers have either filed or proposed amendments to their state constitutions to ban insurance mandates. Much of the public option’s continued popularity is due to the fact that, as poll after poll confirms, people don’t want to be forced to buy the product of the private insurance companies they loath.

    And if you haven’t seen the John Shadegg video on the topic, it’ll give you a preview of the tape that’s running through the head of every endangered House Democrat as the 2010 election approaches. Nobody wants to hand the “mandate” to their Republican opponent as a campaign issue.

    As I told Rick Klein and David Chalian on TopLine yesterday, if you don’t think the endangered Freshmen and Sophomores in the House are driving the car right now, think again. Remember that magic number of 39 Democratic votes needed to join with the Republican for a majority? Well, that’s how many Freshmen and Sophomores were willing to ban together in the “oust Rangel” effort — rather than have the issue hung around their necks as a millstone in 2010:

    Joe Crowley, an ally of Rangel who has also played a leadership role at the Democratic Congressional Campaign Committee, is leading the whip count efforts on Rangel, acting as a go-between between the vulnerable freshman and sophomore Democrats, on the one hand, and Rangel and Democratic leadership on the other.

    They were willing to buck leadership to oust the Chairman of the Ways and Means Committee to keep their seats.

    Think about that.

    So we’re supposed to believe that Suzanne Kosmas is going to cast a vote for a mandate, and be cannon fodder for the Senate once again, when Florida Attorney General Bill McCollum is running for governor and threatening to file a lawsuit to block it? She wants to trigger that as a top-of-the-ticket campaign issue in the state?

    Really?

    And now Ryan Grim reports that Walt Minnick, whose Idaho district has a PVI of R+18, “responded by calling the AP to say that there was no way he was voting yes the next time around.” After what was no doubt furious arm twisting he’s now saying he’ll look at whatever they want to show him, but “if it is simply the Senate bill, I’ve looked at that and decided I was opposed to it.”

    They can’t even hold the “yes” votes. Mike Arcuri now says he’ll vote against the Senate bill because he doesn’t like the excise tax and there’s no prescription drug price negotiation. And Melancon says that they’ve lost votes.

    Grijalva says he’s “leaning” towards opposing the bill. Why the trepidation? Well, because anyone with 10 fingers and toes can figure out they don’t have the votes for this thing, and nobody wants to get the blame for killing the Democratic dream of health care reform. Rahm Emanuel’s efforts seem exclusively devoted to making sure blame for the failure to pass health care doesn’t fall on his head by lobbying the press. Shouldn’t he be out there whipping if they want to pass this thing? That’s his job.

    I’m not sure what the “end game” is here for anyone, other than to follow Rahm’s lead and avoid the falling debris. Obama may think they can still pass this bill, but Rahm seems to know that the top priority at this stage is to make sure blame for health care’s failure goes to somebody else. So far he has managed to generate the most ink for his “Obama is a bumbling stooge” campaign, but that’s largely because he’s willing to pick up the phone and call reporters and Gibbs doesn’t like to. Rahm already had all those channels established, and now he’s flooding them with with Rahm-friendly spin.

    Even David Broder has his eyebrows raised over that spectacle.

    Maybe there’s some way that Obama can personally move enough votes into the “yes” column to pass this thing. But I don’t see it. They haven’t produced one single “no” vote that has committed to switch. And I don’t think they’re likely to.

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  • Please Welcome Randi Weingarten, President of the American Federation of Teachers

    Randi Weingarten is the President of the American Federation of Teachers, the union that represents more than 1.4 million educators. We invited her here today to talk about the mass firing of 74 teachers in Rhode Island last month.

    The profile of the issue was raised dramatically when President Obama voiced his support for the firings on Monday, in a speech before the U.S. Chamber of Commerce:

    “If a school continues to fail its students year after year after year, if it doesn’t show signs of improvement, then there’s got to be a sense of accountability,” he said. “And that’s what happened in Rhode Island last week at a chronically troubled school, when just 7 percent of 11th-graders passed state math tests — 7 percent.”

    As Michael Whitney noted here yesterday, that’s quite a contrast to Obama’s defense of bankers who have received multi-million dollar bonuses and enormous government bailouts as a reward for their continued failure.

    Education Secretary Arne Duncan has applauded the Rhode Island firings.

    At issue is a new Obama administration policy, which places more stringent requirements on schools than No Child Left Behind  in order to qualify for $3.5 billion in federal aid:

    Duncan is requiring states, for the first time, to identify their lowest 5 percent of schools — those that have chronically poor performance and low graduation rates — and fix them using one of four methods: school closure; takeover by a charter or school-management organization; transformation which requires a longer school day, among other changes; and “turnaround” which requires the entire teaching staff be fired and no more than 50 percent rehired in the fall.

    In response to the firings, Weingarten released his statement:

    We are surprised that Superintendent Frances Gallo, who wants to fire every school employee, has not accepted any responsibility herself, especially since she has been at the helm for three years. We also are disappointed that Gallo and the state education commissioner have rejected my overtures to meet and discuss what is best for the students of Central Falls and also have said no to former U.S. Sen. Lincoln Chaffee’s proposal for mediation. It is simply wrong to say no to kids and to parents who want to improve their children’s school.

    She also indicates that Duncan did not speak with teachers before weighing in on the mass firings.

    There appears to be some movement today on negotiations.

    We’re delighted to have President Weingarten here today to discuss what is happening in Rhode Island, as well as other education issues that are facing her union in the wake of state budget crises and funding cuts.

    Please welcome Randi Weingarten in the comments.

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  • Bill Halter Crosses the $5 Million Mark

    I’ll be on ABC’s Top Line today at noon ET to discuss Bill Halter’s primary challenge to Lincoln

    One of Bill Halter’s big trepidations about running a primary challenge to Blanche Lincoln had to do with her fundraising advantage. Her latest fundraising reports indicate that she has raised $5.5 million, and she has $5.02 million cash on hand.

    Two days after his announcement, Halter has nearly matched her haul. Per a press conference with AFSCME’s Gerry McEntee, the unions have committed $4 million to outside expenditures: $1 million each from AFSCME, CWA, SEIU and the Steelworkers. Between MoveOn and the ActBlue fundraising activities of Daily Kos, Accountability Now, DFA, the PCCC and others, there have been $1.16 million in small-dollar online donations made.

    As an organization devoted to recruiting primary challengers, the biggest conundrum that Accountability Now has faced is the fact that viable candidates often don’t want to risk existing political careers unless they know that there will be enough financial support to allow them to be competitive. So our ability to get all the groups together that could potentially pull something like this off, introduce them to the candidate, evaluate the race and determine what it would realistically take to win was crucial. No one group can do it alone, and without that kind of early organizing, you’re stuck with the “beautiful losers” who are oGoal Thermometerften passionate and well-intentioned but simply don’t have the skill or the local credibility to mount a serious challenge.

    As I said on Ed Schultz last night, I don’t know if Bill Halter can win in Arkansas. But I believe he stands a much better chance than corporatist Blanche Lincoln, who stands for everything populist activists on both sides of the aisle are railing against right now. Her donor list is loaded down with the lobbyists, banks and Big Ag companies she has sold her vote to.

    Blanche Lincoln is not in the “center” of anything but K Street, and most of her money will have to be spent making people forget where it came from.

    Obama, Rahm and the DSCC will do everything they can to make sure Lincoln stays in office. It’s going to be an ugly 2 months until the primary, but because liberal interest groups stormed out of the veal pen and marshaled their resources, at least Halter has a fighting chance.

    Donate to Bill Halter’s campaign

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