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

April 4, 2008

Dear Friends,

This week, after a two-week Congressional recess, the Senate reconvened and began debating a housing stimulus package.  After negotiations with the Senate Finance Committee to get the bill to the floor, the legislation includes my proposal to provide a direct tax credit for the purchase of a single-family home in the amount of $7,000 over two years for purchases made within one year of the legislation’s enactment.  Eligible properties include two categories of single family homes where a foreclosure filing has occurred pursuant to the laws of the state in which the residence is located: previously owner-occupied homes, or newly constructed home where construction began on or before September 1, 2007. Again, both categories of homes must be in foreclosure or pending foreclosure to be eligible.

In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. I believe the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

This credit targets the purchase of the very homes causing the economy its biggest problems: foreclosures. A $7,000 tax credit will inspire buyers to get back into the market to absorb this standing inventory of homes that are foreclosed or pending foreclosure.  I hope that the overall housing stimulus package will focus on helping the market and not become a ‘bailout’ that has more negatives than positives for the long-term.

Earmarks
The Fiscal Reform Working Group that I was appointed to by Senator McConnell in January, announced our recommendations on Thursday to improve the appropriations process with increased transparency and accountability.  We recommended provisions making it easier to strip inappropriate earmarks, to direct the savings of stripped earmarks to deficit reduction, to ensure all proposed earmarks are available for public review prior to a vote, and to increase congressional oversight of executive branch earmarks.

The recommendations, which would apply to appropriations, authorization and tax bills, include three main categories: deficit reduction, increased transparency and accountability, and congressional oversight of executive branch earmarks. The savings from any stricken earmark would be applied to reducing the national debt, rather than being spent elsewhere.  In addition, we recommended extending congressional oversight to executive branch earmarks, requiring that they be examined under the same scrutiny as congressional earmarks.

Increased transparency is a significant part of the working group’s recommendations.  Under the recommendations all future earmarks would be required to be placed in the bill text rather than report language, making it easier to strike last-minute, ‘airdropped’ earmarks.  A list of all earmarks must be available on the Senator’s website, and Senate committees must post on their websites all earmark requests in a searchable format at least 48 hours before floor consideration.  In addition, Senators must provide full justification for a requested earmark, and they must state whether they or their family or staff will benefit financially from the earmark. 

I have always believed in transparency in government and these recommendations go a long way to increasing transparency in the legislative process.  All earmark requests I make can be found on my website.  I believe earmarks are a responsibility in representing my state.  I believe we are elected by voters who trust us to use good judgment and common sense for the betterment of our state and nation.

Recess Activities
I enjoyed my visits around Georgia over the March recess and appreciated hearing from so many of you about the issues that are most pressing to your family and your pocketbooks.  In addition to speeches and meetings in Atlanta, I also visited Brunswick, Columbus, Conyers, Covington, Darien, Fort McPherson, Fort Stewart, Jesup, Lawrenceville, Leesburg, Ludowici, Macon, Moultrie, St. Marys, Savannah and Warner Robins.  I was honored to be able to attend the USS Georgia’s Return to Service Ceremony at Kings Bay.  In addition, I pleased to join with Senator Chambliss and Governor Perdue to accept a $5 million Workforce Development Demonstration Grant from U.S. Department of Labor Secretary Elaine L. Chao that will assist with the planned expansion of Ft. Benning and the transitions of Fort Gillem, Fort McPherson and the Navy Supply Corps School.  To view photos from my visits, click here. 

First Georgian Sworn in to Tennessee Valley Authority Board
The first Georgian ever to serve on the TVA board was sworn into his post on March 28.  Thomas Gilliland of Blairsville, Ga., was nominated by President Bush for the post after Senator Chambliss and I recommended him to fill the vacancy created with Bill Baxter resigned from the board in January 2007.  Tom is extremely knowledgeable about the environmental, recreational and power resources provided by the TVA. There is no one better qualified to serve on the TVA board than Tom Gilliland, and I am extremely pleased this outstanding individual can now begin his important work with the TVA.

Farm Bill
In December 2007, the Senate passed a Farm Bill that continues to provide a safety net for farmers, increases conservation programs, provides incentives for renewable energy production and establishes a permanent disaster program.  I believe the Farm Bill is a win for rural America and for farmers in Georgia, where agriculture remains the number one industry in the state. Much of the credit goes to Senator Chambliss for his strong work in crafting this legislation and for making sure that we continue to meet the needs of farmers in Georgia and the Southeast. The House has passed its own version of a Farm Bill and the two chambers are now working to reconcile the differences between their two bills. My hope is that the two chambers will be able to reach an agreement quickly. As expected, last week Congress continued the extension of the Farm Bill. The current extension of the 2002 farm law expires on April 18.

What’s on Tap for Next Week?

The Senate will continue debate on the housing stimulus legislation.

Sincerely,
Johnny Isakson