Transportation Budget Update
I wish this was an April Fool’s Day joke..
As you have probably heard, the House-Senate Conference Committee on the HB 62 (the transportation budget bill) has not yet reached agreement. The stalemate is over the amount of additional revenue/gas tax to be included. The Governor and House support increasing the gas tax by 11 cents and the diesel tax by 20 cents. The Senate offer is 8.5 cents for gas and 13 cents for diesel. The difference between the two scenarios is approximately $170 million a year. We continue to support the House/Governor plan as it will provide ODOT and local governments with a long-term, adequate budget for the upcoming biennium.
We are hopeful an agreement will be reached this week. Typically, the transportation budget must be approved by April 1 so it can be effective on July 1. Failing to meet that deadline is a new occurrence and we are unsure of any impact the delay may have. We will continue to monitor the situation closely and provide an update when we can. If you have any questions please contact Michelle Holdgreve, OCA’s Legislative and Environmental Affairs Director at [email protected].
Affordable Care Act Under Attack - Yet Again!
The Trump Administration has just gone on the record stating that the entire Affordable Care Act should be struck down in a pending Court case destined for appeal – Texas v. United States. On December 14, 2018, a Federal District Judge ruled that because Congress eliminated the penalty on individuals not having ACA compliant healthcare coverage (the “individual mandate”), the ACA “can no longer be sustained as a constitutional exercise of Congress’ tax powers.” In 2012, the Supreme Court ruled that the individual mandate was constitutional because of Congress’ power to tax. But, when the fine for not having insurance was eliminated, there was no taxing basis to uphold the law.
The Department of Justice has just formally announced that it supports the position of the District Judge finding the entire ACA unconstitutional because if part of the ACA fails then the rest of it should be ruled invalid as well.
The case is destined for the Federal Fifth Circuit Court of Appeals in New Orleans and may see as a final destination the U.S. Supreme Court. These proceedings may take more time than is left in President Trump’s current term. In the meantime, ObamaCare remains in effect and both individuals and employers need to comply. Employers still have to offer healthcare coverage to at least 95% of full-time employees and properly report offers of coverage as elements of compliance. For the 10 million individuals with expanded ACA Medicaid and the 11 plus million utilizing the ACA exchanges, coverage will go on for now.
Those most familiar with the legal arguments advanced in Court by the coalition of 20 States believe that the decision will be struck down by the Court of Appeals even though it is a very conservative court. If this be true, the Trump Administration’s appeal to the U.S. Supreme Court may not be accepted. But, if the Court of Appeals somehow upholds the Trial Judge’s position that the ACA is unconstitutional, the case will surely be heard by the Supreme Court.
Because healthcare is such a volatile issue and Congress is so divided on the topic, it is doubtful that a legislative solution will be found before the 2020 elections. Watch for more developments in the months to come, but don’t count on the ACA being cast aside for now.
For further information, contact Bob Dunlevey, Board Certified Specialist in Labor and Employment Law, at Taft/Law (937) 641-1743 or email [email protected].
The Nation's Multiemployer Pension Plan System is Facing a Crisis. Over 100 Plans and a Million Participants' Retirement Security are in Jeopardy.
Various measures have been proposed to address the severe underfunding of these plans as well as the federal agency serving as their financial backstop - the Pension Benefit Guaranty Corporation. However, one pension reform policy that should be enacted immediately is the authorization of composite plans.
A composite plan is a hybrid between a traditional defined contribution and a defined benefit plan. Composite plan legislation would be beneficial to the construction industry because:
• The plan design would protect retirement savings from market downturns or other unforeseen circumstances;
• These plans provide lifetime income to participants and give employers certainty as to how much they must contribute to the plans; and
• The plan design is tried, true, and trusted. In fact, a similar, successful model is utilized in Canada.
OCA is working with our national affiliate, AGC of America to notify our national elected leaders about the importance of fixing our multi-employer pension plan problem. Please take advantage of the easy process below and notify your
Taking action is easy! Simply submit the pre-written message and tweet as is to your members of Congress or customize it with personal information on how this issue impacts you and your company.
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