A Weekly e-Newsletter from
Senator Johnny Isakson (R-GA)

July 1, 2008

Dear Friends,

Last week, Senator Chambliss and I co-sponsored legislation that addresses rising gas prices as well as provides a balanced approach to America’s long-term energy needs.  The Gas Price Reduction Act of 2008 is a result of efforts by Senate Republicans to intensify the legislative debate and provide a vehicle for bipartisan action addressing high gas prices. The legislation, was introduced by Senate Republican Leader Mitch McConnell.

Specifically, the legislation would allow states the option to explore oil and gas resources in the Atlantic and Pacific Outer Continental Shelf at least 50 miles from the coast. It also would repeal the moratorium on Western state oil shale exploration to allow exploration to move forward. The bill would address plug-in electric cars and trucks by increasing research and development for advanced batteries and offer a Sense of Senate that the federal government should increase its purchases of these vehicles. Finally, the legislation would strengthen U.S. futures markets through increased transparency.

In addition, a bipartisan group of senators, including Senator Chambliss and me, sent a letter on June 26 to Democratic Leader Harry Reid and Republican Leader McConnell asking them to convene an energy summit in order to hear from unbiased experts about the most promising approaches to reduce gas prices, lessen our dependence on foreign oil, and strengthen our economy.  We also believe an energy summit held shortly after the July 4 th holiday would benefit all members of the Senate. 

There are no quick fixes in dealing with this issue, but there are things we can and must do.  With skyrocketing gas prices, it is absolutely critical for members of Congress to act now and act boldly to expand and encourage the development of all our resources. 

Troop Funding
Last week, the Senate passed legislation to provide funds for American troops in Iraq and Afghanistan.  The bill provides $161.8 billion to support ongoing operations in Iraq and Afghanistan as well as $4.6 billion in military construction funding. It includes $350 million for a new hospital at Fort Benning, $7.8 million for a child development center at Fort Gordon and $6 million for a soldier family assistance center at Fort Stewart. The bill also requires the Iraqi government to match State Department and USAID funds for Iraqi reconstruction on a dollar-for-dollar basis.  I’m pleased this bill supports our men and women in uniform, who are deployed in defense of freedom, and gives them the resources they deserve and need to accomplish their mission

The legislation also includes language to increase educational benefits to all members of the military who have served on active duty since September 11, 2001, including activated reservists and National Guard. To qualify for the full benefit, veterans must have served 36 months of qualified active duty, with at least 30 days being served after September 11, 2001.  The educational benefit would also be transferable to spouses and dependents of military personnel, as requested by the Department of Defense.  Our nation’s military and their families have sacrificed tremendously so that our nation can live in freedom. It is important we modernize education benefits for our military to ensure that our servicemembers, veterans and members of the National Guard and Reserve receive the education benefits they deserve.

Medicare Payment Cuts to Physicians
I want to update you regarding a mandated 10 percent cut in Medicare reimbursement payments to doctors that is scheduled to go into effect July 1. Congress has been negotiating for months on legislation to eliminate this payment cut, but Democratic Leader Harry Reid forced a Senate vote on Thursday, June 26, 2008, on a House Medicare bill that the Senate had already rejected two weeks earlier. I voted with my colleagues to reject this bill again on Thursday because it unnecessarily expanded certain programs while simultaneously making inappropriate cuts to other programs to pay for the physician update. In short, this bill was not good for Georgia.

When Republican Leader Mitch McConnell sought Thursday night to put off the payment cuts for 30 days to give Congress more time to pass a reasonable, bipartisan bill, Reid objected to that and then adjourned the Senate for the July 4 th recess. Reid’s actions ensured that there would be no chance for Congress to eliminate the 10 percent payment cut before the June 30 deadline.

Thankfully, the Bush Administration announced on Friday, June 27, 2008, that it will hold all Medicare claims from doctors for the first 10 business days of July and that it will make no payments at the 10 percent reduced reimbursement rate until July 15 at the earliest. This positive step by the administration gives Congress a window of time to come together on a reasonable, bipartisan Medicare bill to eliminate this 10 percent cut in Medicare payments to doctors. I will do everything I can to ensure that the Senate passes a bill that is good for Georgia physicians and for Georgia Medicare beneficiaries, especially seniors and those who live in rural areas.

The House bill that Reid forced us to vote on, H.R.6331, would have hurt more than 40,000 Medicare beneficiaries in Georgia who live in rural areas by taking away their access to networks of providers. In addition, it would have expanded eligibility for the Medicare low-income subsidy. This program currently fails to meet the financial needs of those that it reaches now and I believe the current program should be improved before we expand eligibility for it.  

I want to reiterate how glad I am that the administration has announced it will hold Medicare claims for the first 10 business days in July and that it will make no payments at the 10 percent reduced reimbursement rate until July 15 at the earliest. Now, it is up to Republicans and Democrats to put partisanship aside and work together to pass a fair bill that helps doctors and Medicare beneficiaries in Georgia and across the nation.

Housing Stimulus Package
Last week, the Senate continued debate on a comprehensive housing package designed to stimulate the nation’s declining housing market as well as strengthen the regulation of Freddie Mac and Fannie Mae.  This bill doesn’t bail anybody out, but it incentivizes buyers to come back to the marketplace. It provides liquidity to refinance loans that are under water. It motivates, inspires, and provides liquidity in the marketplace through Freddie Mac and Fannie Mae that does not exist right now.

Failure of the Congress to act, in my judgment, is going to cause us to have a protracted and devastating economic decline resting solely on the fact of the decline in the values of homes in America, the increase in the number of foreclosures, and the lack of liquidity in the lending market.

Four New VA Clinics to Open in Georgia
As a member of the Senate Committee on Veterans’ Affairs, one of my top priorities is to make sure America takes care of the veterans who have dedicated their lives to serving our country.  Last week, Senator Chambliss and I were very pleased to announce that the Department of Veterans Affairs plans to open four new community-based outpatient clinics in Georgia.  The clinics, which will enhance access to VA health care for veterans in the state, will be located in the cities of Newnan, Brunswick, Milledgeville and Hinesville. 

The VA said it expects the facilities to become operational in the next 12 months. Local VA officials will keep communities and their veterans informed of milestones in the creation of these new community-based outpatient clinics.  These new facilities will be in addition to the 10 VA community-based outpatient clinics that already operate in Georgia.

Water Issues and the Continuing Drought in Georgia
I continue to fight every day for Georgia in the decades-old war over water with Alabama and Florida. The Army Corps of Engineers has announced its recommendations for modifying the current Interim Operations Plan at the Jim Woodruff Dam that affects the Apalachicola-Chattahoochee- Flint (ACF) River Basin and the U.S. Fish and Wildlife Service has issued its biological opinion.

The new plan puts in place an operations plan to address low/high flow issues, as well as a much-needed drought contingency plan. The new plan allows flow requirements to be adjusted seasonally and gives Georgia maximum ability to store water during times of the year we have rain to store and the new plan will allow the amount of storage to be based on inflows and the status of the system.  I am optimistic that it will improve the situation for all users in the basin. I believe the Corps’ decision appears to be a good first step in confronting these issues.

What’s on Tap?

The Senate is in recess to observe the Independence Day holiday.  I wish you all a safe holiday and ask you to join me in saying a prayer for our troops in harm’s way.  God Bless America.

Sincerely,
Johnny Isakson