107th Congress

WASHINGTON, D.C.

SEPTEMBER 2001

Budget Alert: We Are Close to Red Ink Again

from

the

mailbag ...

New budget numbers validate the concerns I shared along with many other Democrats that the tax cut was too big, spent money we didn't have yet, and would put Social Security and Medicare solvency at risk. The budget surplusprojected at $125 billion prior to the $1.7 trillion tax cuthas shrunk to just $1 billion.

Although the GOP congressional leaders and the President assured the public that we could afford the sizable tax cut without dipping into Medicare and Social Security trust funds, guess what is about to happen now? They need to dip into those trust funds to balance the budget this year. And there is no room left in the budget for a prescription drug benefit, new investment in our schools, and other priorities that most Americans share.

The size of the tax cut was determined based on a projected budget surplus that never materialized. The economy slowed reducing government revenues and the administration couldn't find a way to

. . . the tax cut

was too big,

spent money we didn't have yet,

and would put

Social Security

and Medicare

solvency at risk

Dear Pete,

Our nation's response to the national and global AIDS epidemic must be strong and comprehensive.

Rita, Hayward

Dear Rita,

I'm with you and I'll vote to fund it.

Dear Pete,

Protect my drinking water by setting a safe standard for arsenic.

Erin, Fremont

Dear Erin,

I voted to do just that. Now the issue moves to the Senate.

Dear Pete,

Modernize Medicare to include prescription drugs.

Willa, Oakland

Dear Willa,

I support prescription drug coverage by Medicare (see story on page 4).

Dear Pete,

I don't want another penny of my taxes wasted on Star Wars.

Ardas, Milpitas

Dear Ardas,

Neither do I and I'll oppose Star Wars funding.

Continued on page 3.

House Likely to Debate Wage Increase Bill Soon

Stark Supports Increase to Federal Minimum Wage

While many believe that job creation will raise the standard of living for workers, I believe that it takes more than providing jobs to help reduce poverty levels. Jobs must pay wages that allow workers to earn a decent living. Although California has been a leader in

providing a higher minimum wage level ($6.25 an hour) and many of our local communities have passed living wage requirements, the federal wage standard continues to fall short. We must increase the federal minimum wage to improve the standard of living for millions of American workers.

Two-thirds of all minimum wage workers are adults. A worker who works full-time at the cur

rent federal minimum wage rate of $5.25 per

Continued on page 2.

1

Stark Says Global

Warming Requires

a Global Solution

Once in office, however, President Bush withdrew US support for the Kyoto treaty. In his trips to Europe, the President suggested we can find a better (but as yet unstated) way to address the global warming crisis. Leaders of many nations, including Great Britain, France and Germany, have repeatedly urged the US not to abandon this important environmental treaty. But the Administration has rebuffed their pleas, forcing our allies to live by the Kyoto treaty without US compliance.

I believe that the President's decision to abandon the global warming treaty was wrong and I fear that it will severely harm both our standing with our allies and the environment for years to come.

Global warming is a serious problem that world leaders are now addressing. Unfortunately, President Bush has refused to support other world leaders now working on a solution. As a result, he has united our allies against us on what should be a common goal.

The burning of the fossil fuels to run cars and trucks, heat homes, and power factories has lead to a dramatic increase in global warming.

The leading nations of the world met in Japan in 1997 to create a global solution. After much debate, the conference produced an agreement known as the "Kyoto Protocol." The US signed this historic treaty that requires all treaty signatories to reduce their nation's emissions of CO2.

Problems

With Your

Managed Care

Provider?

The State of California

has created a hotline

for consumers with

managed care problems. Keep this number in a handy place if you need assistance or want to

report a problem you

have with your managed care provider.

1-888-HMO-2219

Minimum Wage Debate

continued from page 1.

hour earns $10, 712 annually. To put this in perspective, the poverty threshold for a family of four is $17,650. Today's full-time minimum wage worker does not even earn enough to keep a two-person family above the poverty line of $11,610. And the poverty threshold, a traditional indicator to measure the amount of income required for a hypothetical family's basic needs, may underestimate the real needs of most families.

Since the 1970s, the minimum wage has lost more than a third (37%) of its real value. To restore the purchasing power that