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allil
Friday August 29, 2008
Fri Aug 29, 2008 6:07pm EDT
CHICAGO (Reuters) - Alabama's governor and Wall Street lenders are
working to avoid a municipal bankruptcy filing by Jefferson County
stemming from problems associated with the county's $3.2 billion of
sewer debt. An agreement reached on Friday that extends until September
30 will keep some of the debt from defaulting.
U.S. municipal bankruptcies are rare, with fewer than 600 Chapter 9
filings since 1934, when the first municipal bankruptcy law was passed,
according to a June presentation by the law firm Mintz Levin. A
bankruptcy filing by Jefferson County could be the largest Chapter 9
filing, depending on the amount of the county's defaulted debt. The
following are the largest or most recent filings and their triggers:
-- Washington Public Power Supply System filed for bankruptcy protection in 1983 after defaulting on $2.25 billion of bonds
-- Orange County, California, filed for bankruptcy protection in
1994 in the wake of losing $1.6 billion from its investment pool due to
interest rate derivatives
-- Vallejo, California, filed for bankruptcy protection in May 2008,
citing overwhelming payroll expenses and sliding revenue, as well as
liabilities of up to $500 million.
Source: Reuters reports
(Reporting by Karen Pierog; Editing by Dan Grebler)
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Where Barack Stands
"From the first moment a woman dared to speak that hope - dared to
believe that the American Dream was meant for her too - ordinary women have
taken on extraordinary odds to give their daughters the chance for something
else; for a life more equal, more free, and filled with more opportunity than
they ever had. In so many ways we have succeeded, but in so many areas we have
much work left to do.”
~ Barack Obama, Speech in Washington, DC,
11/10/05

HEALTH CARE
Fixing the Nation’s Health Care System:More than 19 million women are
uninsured in this country, and women are more likely than men to delay or not
get medical care because of high costs. Barack Obama is committed to ensuring
that all Americans have health care coverage by the end of his first term in
office. Obama’s plan will encourage insurers and providers to adopt electronic
claims systems, electronic medical records, and patient safety reporting
systems. These improvements will reduce administrative costs and health care
inefficiencies such as duplicative testing and medical errors, which in turn
will reduce costly medical malpractice lawsuits. These common sense steps will
cut overall health-care costs by up to 10 percent or more.
Empowering Women to Prevent HIV/AIDS:In the United States, the
percentage of women diagnosed with AIDS has quadrupled over the last twenty
years. Today, women account for more than one quarter of all new HIV/AIDS
diagnoses. Women of color are especially hard hit: In 2004, HIV infection was
the leading cause of death for African-American women between the ages of 25 and
34. Around the world, 7,000 women are infected with HIV every day. Barack Obama
has been a leader in the global fight against AIDS. He introduced the
Microbicide Development Act, which will accelerate the development of products
that empower women in the battle against AIDS. Microbicides are a class of
products currently under development that women apply topically to prevent
transmission of HIV and other infections.
Supporting Research into Women’s Health:Heart disease is the leading
cause of death among women, accounting for nearly 39 percent of all female
deaths. Studies show that after a first heart attack, women are less likely than
men to receive diagnostic, therapeutic, and cardiac rehabilitation procedures,
and are more likely to die or have a second heart attack Women are also more
likely than men to report having arthritis, asthma, autoimmune diseases, and
depression. Health care disparities among minority and poor women are especially
pervasive. Barack Obama has fought to maintain funding for the Centers of
Excellence in Women's Health at the Department of Health and Human Services. He
also supports legislation to encourage research that will examine gender and
health disparities. The same legislation would establish community outreach
programs in underserved areas to help women access health care and maintain
healthy lifestyles.
Fighting Cancer:Ovarian cancer is the fourth-leading cause of
cancer-related death among women in the United States. Because of the lack of
early symptoms or a proven screening test, ovarian cancer also has the highest
mortality of all cancers of the female reproductive system. Barack Obama is an
original co-sponsor of Johanna's Law. Signed into law in January 2007, the law
will educate women and increase awareness of ovarian cancer. Obama has also
supported efforts to combat breast cancer, another leading cause of death among
women. He helped pass legislation in the Illinois State Senate to expand
insurance coverage for mammograms.
Reducing Health Risks Due to Mercury Pollution:More than five million
women of childbearing age have high levels of toxic mercury in their blood and
more than 630,000 newborns are born every year at risk. The EPA estimates that
every year, more than one child in six could be at risk for developmental
disorders because of mercury exposure in the mother's womb. Since the primary
sources of mercury in fish are power plant emissions that contaminate our water,
regulation of utility emissions is essential to protecting the health of our
children. Barack Obama introduced two pieces of legislation to significantly
reduce the amount of mercury that is deposited in oceans, lakes, and rivers,
which in turn would reduce the amount of mercury in fish.
Supporting Stem Cell Research:Barack Obama believes that we owe it to
the American public to explore the potential of stem cells to treat the millions
of people suffering from debilitating and life-threatening diseases. Obama is a
co-sponsor of the Stem Cell Research Enhancement Act of 2007, which would allow
research of human embryonic stem cells derived from embryos donated (with
consent) from in vitro fertilization clinics. These embryos must be deemed in
excess and created based solely for the purpose of fertility treatment.
REPRODUCTIVE CHOICE
Supports a Woman’s Right to Choose:Barack Obama understands that
abortion is a divisive issue, and respects those who disagree with him. However,
he has been a consistent champion of reproductive choice and will make
preserving women’s rights under Roe v. Wade a priority as President. He opposes
any constitutional amendment to overturn the Supreme Court's decision in that
case.
Preventing Unwanted Pregnancy:Barack Obama is an original co-sponsor of
legislation to expand access to contraception, health information and preventive
services to help reduce unintended pregnancies. Introduced in January 2007, the
Prevention First Act will increase funding for family planning and comprehensive
sex education that teaches both abstinence and safe sex methods. The Act will
also end insurance discrimination against contraception, improve awareness about
emergency contraception, and provide compassionate assistance to rape
victims.
PREVENTING VIOLENCE AGAINST WOMEN
Reducing Domestic Violence:One in four women will experience domestic
violence in her lifetime. Family violence accounted for 11 percent of all
violence between 1998 and 2002. Barack Obama introduced legislation to combat
domestic violence by providing $25 million a year for partnerships between
domestic violence prevention organizations and Fatherhood or Marriage programs
to train staff in domestic violence services, provide services to families
affected by domestic violence, and to develop best practices in domestic
violence prevention.
Strengthening Domestic Violence Laws:Approximately 1,400 women a year –
four every day – die in the United States as a result of domestic violence. And
132,000 women report that they have been victims of a rape or attempted rape,
and it is estimated that an even greater number have been raped, but do not
report it. Senator Obama co-sponsored and helped reauthorize the Violence
Against Women Act. Signed into law in January 2006, the bill funds and helps
communities, nonprofit organizations, and police combat domestic violence,
sexual assault, and stalking. The legislation establishes a sexual assault
services program and provides education grants to prevent domestic
violence.
Fighting Gender Violence Abroad:The genocide in Darfur has had
particularly devastating consequences for women. Tens of thousands of women have
been killed, raped, and displaced since the conflict began in 2003. Barack Obama
has been a leading voice in Washington urging the end of genocide in Sudan. He
worked with Senator Sam Brownback (R-KS) on the Darfur Peace and Accountability
Act, a version of which was signed into law. Obama has traveled to the United
Nations to meet with Sudanese officials and visited refugee camps on the
Chad-Sudan border to raise international awareness of the ongoing humanitarian
disaster there. He also worked with Senator Harry Reid (D-NV) to secure $20
million for the African Union peacekeeping mission.
ECONOMIC ISSUES
Fighting for Pay Equity:Despite decades of progress, women still make
only 77 cents for every dollar a man makes. A recent study estimates it will
take another 47 years for women to close the wage gap with men at Fortune 500
corporate offices. Barack Obama believes the government needs to take steps to
better enforce the Equal Pay Act, fight job discrimination, and improve child
care options and family medical leave to give women equal footing in the
workplace. Expanding Paid Medical Leave: Today, three-out-of-four
low-wage workers have no paid sick leave. It is fundamentally unfair that a
single mom playing by the rules can get fired or lose wages because her child
gets sick. Barack Obama supports efforts to guarantee workers seven days of paid
sick leave per year, a moderate proposal that should not impose too onerous a
burden on employers.
Investing in Women-Owned Small Businesses:Women are majority owners of
more than 28 percent of U.S. businesses, but head less than 4 percent of
venture-capital-backed firms. Women business owners are more likely than white
male business owners to have their loan applications denied. Barack Obama
encourages investing in women-owned businesses, providing more support to women
business owners and reducing discrimination in lending.
Protecting Social Security:Americans are increasingly at risk of
working their entire lives only to face retirement in poverty. Barack Obama
believes we need to preserve the character of Social Security by stopping any
efforts to privatize social security. Obama also will work in a bipartisan way
to maintain Social Security’s solvency for future generations.
Encouraging Retirement Saving:The personal saving rate is at its lowest
level since the Great Depression. Only 55 percent of Americans working full-time
hold a job with a retirement savings plan; the percentage is even lower for
women. As of March 2005, less than half of the 60 million wage and salaried
women working in the United States participated in a retirement plan. Barack
Obama wants to make retirement saving easier, cheaper, and more automatic for
middle-class and working people who get only minor tax benefits to save and who
are the ones that really need the money. Obama co-sponsored with Senator Jeff
Bingaman (D-NM) the Save More for Retirement Act, which provides incentives for
automatic enrollment in 401Ks. One study has found that, among employees with
less than 15 months tenure, automatic enrollment increased participation from 12
percent to 79 percent for workers with annual earnings of less than
$20,000.
Improving Child Support Collection:Less than half of parents collecting
child support receive the full payments they are due. More than $11 billion in
child support goes unpaid every year. Barack Obama introduced legislation to
increase child support enforcement by an additional $4.9 billion over 10 years,
a measure that will collect nearly $20 billion in payments from men who don't
fulfill their parental responsibilities. The bill also makes sure that states
pass through 100 percent of collected child support payments to
families.
NATIONAL SECURITY
Ending the War in Iraq:There are 202,000 women serving on active duty
and 64,000 serving in the Guard and Reserves. Scores of female troops have died
in Iraq and hundreds more have been injured. Barack Obama opposed the war from
the beginning and has introduced legislation that would begin a phased
withdrawal starting May 2007, with a goal of removing all of our combat troops
by March of 2008. Realizing there can be no military solution in Iraq, Obama’s
plan focuses instead on reaching a political solution in Iraq, protecting our
interests in the region, and bringing this war to a responsible end.
Caring for Women Veterans:There are 1.7 million women veterans today, a
number that is increasing every day. The Department of Veterans Affairs (VA)
that was built to care for World War II veterans is not ready to handle the
influx of women veterans from Iraq and Afghanistan. As a member of the Senate
Veterans Affairs Committee, Barack Obama has introduced legislation to force the
Pentagon and VA to better track the newest generation of veterans – including
the number of women veterans – so that the VA can better plan their care. Obama
also introduced legislation to fight homelessness among veterans, with a special
focus on treating women who may have been victims of sexual trauma. Along with
Senator Claire McCaskill, Obama has also co-sponsored legislation to provide
funding for additional caseworkers and mental health counselors, a women’s
mental health treatment program, and a comprehensive mental health study of
returning soldiers. As president, Barack Obama will fight to ensure that women
can get the care they deserve at the VA.
POVERTY
Fighting Poverty:Of the 37 million Americans living below the poverty
line, approximately 14.6 million are women — a staggering number equal to the
combined populations of Iowa, Indiana, and Wisconsin. And nearly 13 million
children are living in poverty, a rise of 1.3 million since 2000. Barack Obama
is committed to a renewed effort to tackle the underlying problems that cause
poverty.
Raising the Minimum Wage:Barack Obama believes that people who work
full time should not live in poverty. The minimum wage hasn’t been changed in
nine years and has less purchasing power in real dollars than it did in 1955.
Women are the largest group of beneficiaries from a minimum wage increase: 60
percent of the workers who would benefit from an increase to $7.25 are women. As
President, Barack Obama would raise the minimum wage, index it to inflation, and
increase the Earned Income Tax Credit to make sure that full-time workers have a
living wage.
Helping Low-Income Workers:Transitional jobs are a promising way to
help chronically unemployed people break into the workplace. This approach
places participants into temporary, subsidized wage-paying jobs. It also offers
mentoring and social services designed to address the work-blocking problems
like personal and family conflicts. Once they find entry-level work, low-income
workers often are unable to break into middle-class jobs. Bridge programs can
help by partnering the federal government with employers and community-based
organizations to identify job opportunities, develop customized training
programs, and place low-income employees in better jobs. Barack Obama introduced
legislation to devote $50 million for transitional and bridge employment
programs for hard-to-employ groups like homeless veterans, children aging out of
foster care, and people returning to communities after serving time in
prison.
Supporting Low-Income Families:Barack Obama has a long history of
helping working families achieve economic self-sufficiency. As a State Senator,
Obama sponsored and passed the Illinois Earned Income Tax Credit for the working
poor, one of the most effective tools devised to move people out of poverty. As
a U.S. Senator, Obama worked with Senator Olympia Snowe (R-ME) to introduce
legislation lowering the Child Tax Credit’s income limit so that 600,000 more
families can benefit. The Child Tax Credit allows parents to receive $1,000 per
child and has been an important financial resource for working families.
Unfortunately, the credit is skewed so that many families who need it the most
cannot get it. Because of artificially high income limits that are indexed to
inflation every year, parents that work full-time at minimum wage are not
eligible for the credit. As a result, nearly 17 million low-income children get
less than the full credit. Barack Obama has also introduced legislation that
would provide immediate tax relief to low-income working families from the
Hurricane Katrina disaster areas by enhancing the refundable portion of the
Child Tax Credit.
Improving Afterschool and Daycare Opportunities:Millions of American
families are struggling to juggle job and family responsibilities. Many
low-income parents struggle to maintain employment and afford childcare. Barack
Obama has sponsored legislation in the Illinois Senate to establish grants for
after-school programs. He believes in increasing federal support for
after-school programs with proven records of success at helping children avoid
crime and drugs.
EDUCATION
Protecting Title IX:Barack Obama supports eliminating gender
discrimination in American schools. For 35 years, Title IX has been a bulwark
against sex discrimination against students and employees at all levels of
education. Obama will fight to make sure women have equal opportunities and
access from pre-kindergarten through graduate school.
Expanding Early Childhood Education:Research shows that half of
low-income children start school up to two years behind their peers in preschool
skills and that these early achievement gaps continue throughout elementary
school. Barack Obama supports increasing funding for the Head Start program to
provide preschool children with critically important learning skills, and
supports the necessary role of parental involvement in the success of Head
Start. He has also called on states to replicate the Illinois model of Preschool
for All.
Promoting Women in Math and Science:Women constitute 45 percent of the
workforce in the U.S., but hold just 12 percent of science and engineering jobs
in business and industry. Women also make up just 9 percent of the recipients of
engineering-related bachelor’s degrees. Barack Obama believes that every student
should have equal access to education in math, science, and technology in order
to compete on a global scale.
Improving Our Schools:Barack Obama introduced a plan to support school
districts that try new methods to improve student achievement and reward
effective teachers and school leaders. Under his initiative, 20 districts across
the country will get grants to develop innovative plans in consultation with
their teacher unions. High-performing teachers, and those who take on new
responsibilities such as mentoring new teachers, will be eligible for pay
increases beyond their base salary. Effective school leadership and effective
teaching can improve both the work environment for teachers and learning
environment for students. These innovation districts will show results that can
be replicated in other school districts.
Making College More Affordable:Barack Obama will make college
affordable for all Americans by creating a new American Opportunity Tax Credit.
This fully refundable credit will ensure that the first $4,000 of a college
education is completely free for most Americans, and will cover two-thirds the
cost of tuition at the average public college or university. And by making the
tax credit fully refundable, Obama’s credit will help low-income families that
need it the most. Obama will also ensure that the tax credit is available to
families at the time of enrollment by using prior year’s tax data to deliver the
credit at the time that tuition is due, rather than a year or more later when
tax returns are filed. Recipients of this credit will be required to conduct 100
hours of public service a year, either during the school year or over the summer
months.
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FDIC data
The mortgage crisis, worsening economy and financial and credit markets are blamed
Combined News Services Article Last Updated: 08/26/2008 10:38:49 PM MDT
Combined News Services Article Last Updated: 08/26/2008 10:38:49 PM MDT Bank, which failed in July - the biggest regulated thrift to fail in the United States.
''More banks will come on the [troubled] list as credit
problems worsen,'' Bair said. ''Assets of problem institutions also
will continue to rise.''
Nine FDIC-insured banks have failed so far this year, compared
with three in all of 2007. More banks are in danger of collapsing this
year, Bair and other FDIC officials said, and they expect turbulence in
the banking industry to continue well into next year.
IndyMac's failure and others in the quarter reduced the
federal deposit insurance fund from $53 billion to $45 billion. Bair
said the agency will raise insurance premiums paid by banks and thrifts
to replenish its reserve fund and bolster depositors' confidence.
The $50.2 billion set aside to cover loan losses in the
April-June period was four times the $11.4 billion the banking industry
salted away a year earlier. Nearly a third of the industry's net
operating revenue went into building up reserves against losses in the
latest quarter, according to the FDIC.
Except for the fourth quarter of 2007, the earnings reported
Tuesday were the lowest for the banking industry since the final
quarter of 1991, the agency said.
Concern has been growing over the solvency of some banks amid
the housing slump and the steep slide in the mortgage market. The
pressures of tighter credit, tumbling home prices and rising
foreclosures have been battering banks of all sizes nationwide.
The FDIC has been keeping an especially close eye on banks and
thrifts with high levels of exposure to the riskiest borrowers and
markets, agency officials say, including subprime mortgages and
construction loans in overbuilt areas.
Another area of potential concern is banks' holdings of
preferred stock of troubled mortgage giants Fannie Mae and Freddie Mac.
A government rescue of the companies, whose share prices have rebounded
a bit this week after plummeting recently as they struggle with
billions of dollars in losses from bad mortgages, could be costly for
scores of banks that hold billions in their preferred shares.
| | Posted by alfred at 9:23 PM - | |
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Reliance on Souring Development Loans Is Leading To a Cash Crunch, Limiting Funds for Other Businesses
Washington Post Staff Writers
Wednesday, August 27, 2008;
Page D01
Late loan payments and defaults by commercial and residential
developers have soared to the highest levels since the early 1990s,
threatening the health of some small banks, regulators said yesterday.
The delinquency rate on construction and development loans hit 8.1
percent at the end of June, the highest rate for any category of bank
loans, according to new data from the Federal Deposit Insurance Corp. The rate has more than tripled from 2.4 percent at the end of June last year.
The missed payments are forcing banks to hoard money against possible
losses and to tighten lending standards. Some chastened banks have even
curtailed lending to new customers in order to conserve available funds
for existing customers.
Small banks are hardest hit. Many concentrated in construction and
development lending during the real estate boom, and they have less
financial padding to absorb losses. Regulators said they had added 27
names to a list of troubled institutions in the second quarter, a 30
percent increase, largely because of problems with development loans.
Nine banks have failed this year, none in the Washington region.
Abigail Adams National Bancorp,
a small lender headquartered in the District, yesterday suspended
dividend payments, saying it wanted to save cash for other needs,
including potential loan losses. The company already holds more capital
than required by regulators.
The downturn that began with homeowner defaults has now spread
through developers and their banks to reach businesses as far removed
from suburban foreclosures as a shoe store in Columbia Heights.
Kassie Rempel, owner and founder of the boutique online retailer
SimplySoles, went to the Bethesda-based Eagle Bank three months ago for
a loan to build her first store, in Columbia Heights in Northwest
Washington. Despite growing sales that topped $2 million last year,
bank officials required Rempel to personally guarantee the loan. They
told her that because of credit conditions, the practice has become
standard across banks, she said.
"It gave me pause, but not enough to not proceed with the
paperwork," said Rempel, who has been operating her online and
catalogue business from her basement in Mount Pleasant.
A spokesman for Eagle Bank said it would not comment on specific cases.
The delinquency rate for mortgage loans that sit on bank balance sheets
is relatively low. Most mortgage loans are made by mortgage companies
and sold to investors. Overall, about 8.8 percent of home mortgages
were delinquent or in foreclosure as of June, according to the Mortgage Bankers Association.
Delinquency rates on credit cards, home equity and other consumer loans
continue to climb but remain lower. Mortgage loans for commercial
properties and other loans to businesses have been relatively
unaffected.
Many small banks focused on construction lending because it was one
of the few areas where they could compete with larger banks. In other
areas, large banks used their scale to offer prices and products that
small banks couldn't match, from free checking to lower rates on
mortgages.
But construction lending was an area where smaller banks could
compete by cultivating relationships with developers and embracing
risk. And during the real estate boom, it was immensely profitable,
leading, among other things, to the founding of many new banks, some of
which appeared to be functioning essentially as real estate investment
clubs.
Now the tide appears to be turning.
The profit margins of small banks that focused on construction
lending shrank below the margins for other small banks in the first
quarter of 2008 for the first time since the real estate boom began,
according to an analysis by the Office of the Comptroller of the Currency.
Just as larger banks have struggled with defaults on loans to
homeowners, smaller banks are now struggling with defaults on loans to
home builders.
"We are starting to see the onset of a second round of effects
primarily concentrated in residential and commercial development
lending that affects more institutions and probably will play out over
a longer period of time," FDIC officials said during a news conference
yesterday.
A list of troubled banks kept by federal regulators included 117
names at the end of June, up from 90 institutions at the end of March.
Those troubled institutions had total assets of $78.3 billion, up from
$26.3 billion in March. The June numbers include some banks that have
since failed, including IndyMac Bancorp, which had assets of $32 billion.
Further increasing the pressure on banks, FDIC officials confirmed that
they will discuss in early October an increase in the insurance premium
banks are required to pay on deposits to replenish the insurance fund
after the expenses of recent failures.
"The industry as a whole remains well-positioned to meet the credit needs of local communities," Chessen said.
Federal regulators warned banks in late 2006 to avoid too much
concentration in construction and development lending. Almost half the
banks in Virginia and 40 percent of the banks in Maryland now have
concentrations of such loans in excess of the standard suggested by
regulators. Nationally, about a quarter of institutions are above that
threshold.
Some bankers say the concern is hard to address. Small banks now
exist to make real estate loans, and by nature they rise and fall with
the local economy.
"It's not an unfair concern, but I don't know how one really gets
around it. We're located here, and this is our market," said John
Shroads Jr., chief loan officer at Adams National Bank. "Your fortunes
are tied to the place where you operate."
Adams National is the main subsidiary of Abigail Adams,
which suspended its dividend yesterday. The holding company also owns a
bank in Richmond. It is majority-owned and -operated by women, and it
focuses on serving female- and minority-owned businesses.
The company most recently paid a quarterly dividend of 12.5 cents
per share in June, and investors expected another payment in September.
But the company said this morning that its board of directors had voted
to suspend the payments. The company will save about $433,000 each
quarter.
"Current economic conditions require prudent management and conservation of capital," said chief executive Jeanne Hubbard.
Banks are cutting back most dramatically on the business that burned them: development lending.
Caruso Homes of Crofton filed for bankruptcy protection after
cost-cutting failed to shore up its financial health. Others, such as
Seville Homes in Virginia, have lacked the resources to finish some of
the homes they started, which has left customers out in the cold.
James Williams,
executive vice president of the Northern Virginia Building Industry
Association, said banks are hurting builders by tightening lending
standards unnecessarily, such as requiring larger down payments or an
assurance that homes will sell faster, allowing the loan to be repaid
more quickly.
The new requirements feed a vicious cycle, he said. Builders can't
borrow money, so their businesses struggle. That, in turn, makes it
harder for them to meet their payments on outstanding loans.
But the lending drought could have an upside for the industry in the
long run by giving builders time to sell off the excess inventory of
homes, office space and storefronts.
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Sen. Tom Coburn
(Chris Kleponis - Bloomberg News)
Enlarge Photo
Washington Post Staff Writer
Friday, August 29, 2008;
Page A13
Civil servants have been away from their jobs without permission much
too often in recent years, Coburn says in a new report. Records from 17
federal agencies and the U.S. Postal Service show that workers were absent without leave for 19.6 million hours between 2001 and 2007, the study found.
That's the equivalent of 2.5 million missed days of work, or 316
employees skipping out for entire 30-year careers, says Coburn, the
ranking Republican on the Senate Homeland Security and Governmental
Affairs subcommittee on federal financial management.
"During my time in Congress, I have met many wonderful people who
work for the federal government out of a sense of service to their
country," Coburn wrote in a cover letter for the report, released Aug.
21. "Unfortunately, there is also a sizeable and growing number of
federal employees who undermine the agencies they serve by failing to
show up to work. . . . I believe the American taxpayer deserves
better."
But federal employees and their advocates, and a few agency
officials, called the report misleading. They said it does not put the
numbers in context, omits other figures and unfairly disparages the
professionalism of the federal workforce, which averaged about 2.5
million people, including postal employees, during the period Coburn
studied.
Looked at another way, for example, Coburn's numbers show that the
average federal employee is absent from work without permission for
about 67 minutes a year.
In a telephone interview, Coburn said he is bashing not the
rank-and-file but rather bosses who do not address the issue. "This
isn't about the federal workforce, this is about the management of the
federal workforce," he said. "That's what needs to be better."
In the Senate, Coburn is known as "Dr. No," a lawmaker who considers
the government too big and wasteful and routinely votes against
creating or expanding programs. He asked agencies for data on workers
who were AWOL, or absent without leave, between 2001 and 2007. That
meant they were late or absent altogether, but not because of vacation,
illness, jury duty or other approved leave.
As the report notes, not all agencies define AWOL the same way. Some
consider employees AWOL when they are 15 minutes late. Others do so
only for lengthier absences. Some agencies provided incomplete data -- Transportation Security Administration figures were only for 2007, for instance. Employees are not supposed to be paid for time they are AWOL.
In Coburn's calculus, the departments of Veterans Affairs and the
Treasury were the most absentee-plagued, with employees missing for 8
million and 4 million hours, respectively. Absenteeism matters, he
wrote, because less work gets done and agencies may hire more people to
compensate, driving up payroll costs.
At VA, the department's 273,000 employees worked about 2.5 billion
hours over the period, said spokeswoman Lisette Mondello. The 8 million
AWOL hours is a tiny amount in comparison, amounting to one-third of 1
percent of all hours worked, she said. Mondello said the department
tracks AWOL hours "meticulously" to let employees know that lateness
and unapproved absenteeism won't be tolerated.
The report "gives the impression that employees at the VA are not
there and it's the furthest from the truth," she said. "We take
accountability very, very seriously."
At Treasury, about 96 percent of the AWOL hours were logged by Internal Revenue Service
employees, many of whom are part-time or seasonal workers who have
accrued little or no sick leave or vacation time, said spokeswoman
Brookly McLaughlin.
"This is an important issue, and we at Treasury continue to look for
ways to ensure proper identification of employee absences," McLaughlin
said. "We work to train employees and management to address these
issues."
J. David Cox, the national secretary-treasurer of the American Federation of Government Employees,
the largest federal employee union, said some federal workers taking
approved leave -- vacation, family and medical leave or leave without
pay, for example -- may be marked down temporarily as AWOL until
paperwork is completed.
"It's a classic example of how you can pull out numbers if you are trying to prove some point," Cox said.
Even public servants with the best of intentions are not always where
they are supposed to be. Coburn, for instance, has missed 58 of 1283
votes, or 4.5 percent, during his nearly four years in the Senate,
according to congressional records. In six years in the House, he
missed 232 of 3741 votes, or 6.2 percent.
Coburn said he missed 40 Senate votes when he was being treated for
cancer last year. As for the missed House votes, he said: "It's
probably because of the same reasons I miss votes on Monday nights --
because flights get in late."
Staff researcher Madonna Lebling contributed to this report
| | Posted by alfred at 5:13 PM - | |
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