Campaign News

Activists with a group pushing for changes at the Federal Reserve asked St. Louis Fed President James Bullard to accompany them on a bus tour of some of the poorest communities in St. Louis.

About a dozen activists delivered an invitation for the tour to a St. Louis Fed official at the regional Fed headquarters downtown. An equivalent number of police watched.

“You’re very removed when you’re in that rarified air of the Federal Reserve,” said organizer Derek Laney.

The group is affiliated with the national Fed Up campaign, which is pushing for more diversity on regional Fed boards and wants the Fed to put more emphasis on keeping unemployment low rather than controlling inflation. Laney is affiliated with Missourians Organizing for Reform and Empowerment, a local activist group that speaks out on issues such as policing and coal companies.

The activists’ demonstration coincided with the Fed’s Open Market Committee meeting Wednesday, where Fed officials decided, as expected, to again hold off raising its benchmark interest rate.

Still, some expect the Fed could signal another small rate hike at the end of the year, similar to a small increase in December 2015 that was the first hike in almost 10 years.

Even discussing an increase will still affect market interest rates and economic growth — an unnecessary move while many people are still trying to benefit from the tepid economic recovery, said Nick Apperson, an executive from downtown tech firm LockerDome who participated in the demonstration.

“While it’s likely they’re not raising interest rates in this meeting, … they’re hinting that they’re going to, which will have a similar effect,” he said.

Laney said the group also wanted to call attention to comments Bullard made last month at the annual conference attended by Fed officials and other top central bankers in Jackson Hole, Wyo. Fed Up activists attended the event to speak with officials, and during an interview with CNBC, Bullard said that one of the group’s funders, Facebook co-founder, Dustin Moskovitz, should have come in person rather than sending “all these people.”

“If Bullard wants to walk back those comments he made at Jackson Hole, he needs to walk our streets and talk to our folks,” Laney said.

By Jacob Barker

Source

Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in Arizona, where the outcome of the special election in the 8th district is perhaps less important than the margin.

Watch the video here.

FOR IMMEDIATE RELEASE: January 28, 2014

 

NEWARK CITY COUNCIL PASSES PAID SICK DAYS BILL

IN 5-0 VOTE, NEWARK BECOMES 2ND CITY IN NJ TO GUARANTEE SICK DAYS

Passage of sick day laws in NJ’s two largest cities back to back spells major momentum for the issue statewide

The following statement can be attributed to Andrew Friedman, Co-Executive Director of the Center for Popular Democracy:

“The rapid spread of paid sick days from city to city across the country shows that the public is strongly supportive of policy that improves the lives of working families. Progressive coalitions are leading the way, hand-in-hand with elected officials who are committed to a robust economy that creates good jobs and expands our country’s middle class.”

Contact:

TJ Helmstetter, the Center for Popular Democracy 973.464.9224, tjhelm@populardemocracy.org

Rob Duffey, NJ Working Families Alliance (973) 273-3363, rob@njworkingfamilies.org

Background:

In a move to protect Newark’s public health and bolster its economy the City Council adopted an ordinance that would allow all private-sector workers to earn paid sick days. The legislation passed by a vote of 5-0, and if signed by Mayor Luis Quintana the ordinance will make Newark the 2nd city in New Jersey and the 7th city in the nation to enact an earned sick days law.

“Tonight is a tremendous victory for 38,000 workers who will never again have to choose between their paycheck and their health or the health of their family,” said Kevin Brown, State Director of SEIU 32BJ. “By extending the right to earn sick days to every single worker in the city, Newark’s earned sick days law will be one of the most comprehensive in the nation. Lawmakers in Trenton and around the state should take notice.”

The Newark bill will allow private-sector workers to earn 1 hour of sick time for every 30 hours worked. Those that work in businesses with 10 or more employees can earn 5 paid sick days per year; workers in businesses with nine or fewer employees would be eligible to earn 3 paid sick days per year. In addition, employees directly in contact with the public would be eligible to earn 5 sick days regardless of company size, and the days can be used to care for themselves or family members.

“When I caught the flu last winter I knew I couldn’t go to work and risk infecting my clients,” said Tamika Hawkins a professional home health care provider who lives in Newark and a member of New Jersey Communities United. “But without pay I fell behind on my bills and even received a shutdown notice from the electric company. This law will make a big difference for me and other hard-working people in Newark, and I’m proud that our city is now a leader in this fight.”

Nearly one quarter of adults in the US have been fired or threatened with job loss for taking time off to recover from illness or care for a sick loved one, and the absence of paid sick days disproportionately affects low-income individuals. For a low-income family without paid sick days, going just 3.5 days without wages is the equivalent to losing a month’s groceries.

As of 2010 Newark's poverty rate exceeds 30%.

“Through our community organizing work we are actively engaging residents on the issues they care most about and workplace issues frequently rise to the top of community concerns,” said Trina Scordo, executive director of NJ Communities United. “We have found that low-wage workers in particular fear losing their jobs if they call in sick to take care of themselves or their children. Passing earned sick days is especially important for residents working in direct care, retail, fast food, or any other industry where workers are in frequent contact with the public. There’s no question that paid sick days improves the lives of working families and the fabric of our communities.”

Health professionals praised the legislation for including special public health protections, including ensuring that workers in regular contact with the public are able to earn a full five sick days.

“By passing this legislation, Newark will join Jersey City as a city in our state that looks to protect workers, consumers, families, and the community as a whole from the spread of contagious illness and from ensuing health care costs,” said Elmer, RN and President of the Health Professional and Allied Employees Local 5089. “Providing earned sick days is a modest policy that will have a big impact."

Advocates also touted the economic benefits of the legislation. Last week the Time to Care Coalition delivered a letter from over 20 New Jersey economists to the Newark Council urging them to support the law, saying it will bring tangible benefits to the local economy. On Tuesday a report from the Institute for Women’s Policy Research confirmed that the city and local businesses will actually save money because of the legislation. Studies of earned sick days laws passed in San Francisco and Seattle showed no negative impact from earned sick days on local economies, and both cities outpaced neighbors that lacked earned sick time protection.

“Workers coming to work sick actually costs our nation $160 billion annually, far more than the cost of workers staying at home to recover,” said Karen White, Director of the Working Families Program at the Rutgers Center for Women and Work. “When sick workers stay home, the spread of disease slows and workplaces are healthier and more productive. And by letting workers earn sick days businesses put money in the pockets of low-income workers who go out into the marketplace and spend it on goods and services. It’s a win-win for workers, employers, and local economies.”

Support for the law has been overwhelming. The New Jersey Working Families Alliance delivered 10,000 postcards from Newark voters urging the City Council to pass the law, and earlier today New Jersey Citizen Action delivered a letter from over 60 organizations around New Jersey in support of the legislation. A September poll from Rutgers-Eagleton showed a commanding 82% of Essex County residents supported the policy.

“Working families are looking to their elected officials to show leadership in this fight for what should be a basic worker’s right, and today the Newark City Council stepped up,” said Bill Holland, executive director of the New Jersey Working Families Alliance. “After tonight’s vote there’s no denying it: the national momentum for earned sick days laws has broken through to New Jersey in a big way.”

The legislation comes just two months after Jersey City passed the first earned sick days law in New Jersey. Five other cities – Washington, D.C.; San Francisco; Seattle; New York City; and Portland, Oregon – have taken action to help boost the economy by making sure workers can hang on to critical income when ill. On Tuesday Washington, D.C. expanded their existing paid sick days laws to cover all workers. In New York City, paid sick days legislation was a powerful determinant in the outcome of this month’s Democratic primary for mayor, as voters were less likely to vote for Speaker Christine Quinn after she blocked action on paid sick days for three years.   Campaigns for statewide sick days laws are moving forward in Vermont, Massachusetts, Oregon and elsewhere.  

Looking forward, advocates pointed to a statewide bill introduced this spring by Assemblywoman Pamela Lampitt and Senator Loretta Weinberg that would cover all of New Jersey’s 1.5 million workers who currently lack paid sick days. The bill is being championed by the statewide Time to Care Coalition.

“While tonight’s vote is a huge victory for working families, there are still over a million New Jerseyans who lack the basic security that earned sick days provide,” said Phyllis Salowe-Kaye, Executive Director of New Jersey Citizen and spokesperson for the Time to Care Coalition. “In the coming year we’re going to build on the momentum from our victories in Jersey City and Newark and make New Jersey a leader in this nationwide fight for fairer, healthier, and more prosperous communities.”

Coalition members that supported earned sick days in Newark and Jersey City include the Time to Care Coalition, Center for Popular Democracy, SEIU 32BJ, the New Jersey Working Families Alliance, New Jersey Communities United, the ACLU of New Jersey, the Committee of Interns and Residents SEIU, the New Jersey NAACP, Health Professionals and Allied Employees, AFT, New Jersey Citizen Action, CWA District 1, and AFSCME Council 1.

Additional reaction to Earned Sick Days Passage:

"A healthier and more productive workforce benefits everyone. This Newark ordinance is a win -win for employees, businesses, and our whole economy," said Corinne Horrowitz, business representative of the New Jersey Main Street Alliance.

"Paid sick days is a human rights issue. Families must be able to take care of their love ones without thinking about how they will pay their bills for taking a sick day off," said Virgilio Oscar Aran, Executive Director of Laundry Workers Center.

"This is a proud day for Newark," said Udi Ofer, executive director of the ACLU of New Jersey. "No one should be forced to choose between protecting their health and their job. This new requirement of paid sick days will give Newarkers fundamental protections to keep their families healthy and their jobs secure.   We commend Councilman Anibal Ramos for his leadership and the Newark Municipal Council for its passage of this critically important policy. We look forward to continuing to work with allies and lawmakers across the state to ensure all New Jerseyans have the basic protections Newark workers will now have."

“Low income workers should have the same worker benefits as others," said Raymond Ocasio, executive director of La Casa de Don Pedro. "We all can get sick, and having sick days through the Newark Earned Sick Days Ordinance and access to health care under the Affordable Care Act will only make us all better off.”

“This is a great day for Newark and for its working caregivers. We know that nearly 2 out of 3 workers ages 45 to 74 have caregiving responsibilities for an aging or other adult relative. And caregivers without earned sick days have historically been forced to make some really hard choices. Now, as a result of this measure, if they or one of their close family members get sick, they won’t have to choose between keeping their jobs or taking the time to get well or care for loved ones,” said Dave Mollen, AARP New Jersey State President.

"This Earned Sick Time ordinance is designed for my patients who must choose between taking care of themselves and preventing the spread of viruses or making sure they don't lose a day's wages or even their job," said Dr. Ahmed Yousaf, Vice President for the Committee of Interns and Residents-SEIU. "Because of the realities of urban life, the health of one can very quickly affect the health of all of us. By moving this bill forward, the Council is standing up for the health of all Newarkers."

"Newark's passage of paid sick days reflects a turning point for these policies in this country," said Ellen Bravo, executive director of Family Values @ Work, the national network of 21 city and state coalitions, including the Time to Care Coalition in New Jersey, working on these issues. "In 2013 alone, the number of cities who have passed paid sick days has more than doubled, underscoring the overwhelming public support and momentum for common-sense policies that value families at work. We applaud our member coalition in Newark, which moved quickly to implement legislation that will grant 38,000 workers with access to paid sick days, including 'carving in' workers involved in direct service food, home care and child care, and which will pave the way for similar victories in Trenton and beyond."

###

 

TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were apparently not on the agenda.

Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair's independence in setting monetary policy.

"I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently," Earnest told reporters ahead of the meeting.

The closed-door discussion is instead an opportunity to "trade notes" on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.

Obama and Yellen talked about the growth outlook, "the state of the labor market, inequality and potential risks to the economy," the White House said after the meeting. The Hill's Jordan Fabian has more: http://bit.ly/25VuzIZ.

HOUSE TO MARKUP PUERTO RICO DEBT BILL: The House Natural Resources Committee will begin on Wednesday to mark up legislation aimed at saving Puerto Rico from a massive debt crisis.

Lawmakers have been working to make significant changes to the measure, which is expected to unveiled as early as Monday night, since the panel released a discussion draft on March 29.

The Puerto Rico measure, which put the island's finances under federal oversight and authorize a restructuring of some of its debt, will need to strike a balance and attract bipartisan support and the backing of the White House to move forward.

LEW MAKES CASE FOR GLOBAL ECONOMIC LEADERSHIP: Treasury Secretary Jack Lew on Monday made the case for the United States to continue its global economic leadership as the administration faces criticism from Donald Trump and other presidential candidates.

"We know that the global landscape of the next century will be very different than that of the post-war era," Lew said in a speech at the Council on Foreign Relations. "And if we want it to work for the American people, we need to embrace new players on the global economic stage and make sure they meet the standards of the system we created, and that we have a strong say in any new standards."

"The worst possible outcome would be to step away from our leadership role and let others fill in behind us," he added. The Hill's Naomi Jagoda fills us in: http://bit.ly/1qjTIwe.

GOLDMAN SACHS SETTLES MORTGAGE PROBE FOR $5 BILLION: Goldman Sachs will pay more than $5 billion to settle charges that it engaged in "serious misconduct" when selling risky mortgages leading up to the 2008 financial collapse.

The $5.06 billion civil settlement also saw the Wall Street giant admit it failed to properly inform investors of the risks in the subprime mortgage securities the bank was selling.

"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," acting associate attorney general Stuart Delery said in a statement.

One of the government charges, which Goldman has now acknowledged, was that the bank kept internal concerns about the strength of the mortgage market hidden from potential investors. Here's more from The Hill's Peter Schroeder: http://bit.ly/1qjTJQQ.

SANDERS SAYS GOLDMAN'S BUSINESS 'RIGGED': Bernie Sanders charged Monday that the settlement proves Goldman Sachs's business is "based on fraud."

The Justice Department announced Monday that the Wall Street giant would pay over $5 billion to settle charges it sold risky mortgage investments in the lead up to the financial crisis, and didn't tell investors enough about it.

Sanders, who has built his presidential campaign in large part on big bank bashing, said the settlement proves his point.

"What they have just acknowledged to the whole world is that their system ... is based on fraud," he told supporters in New York.

Sanders also complained that the civil settlement did not include any criminal charges, proving the "corruption of our criminal justice system." http://bit.ly/1TNk2Lm

HAPPY MONDAY and welcome to Overnight Finance, where we're wondering why Herbert Hoover gets to join the racing presidents. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight's highlights include securities fraud charges for Texas's attorney general, a trillion-dollar national pension gap and a Tax Day delay.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.thehill.com/signup/48.

ON TAP TOMORROW:

Senate Finance Committee: Hearing on examining cybersecurity and protecting taxpayer information, 10 a.m

Senate Appropriations Subcommittee on Financial Services: Hearings to examine proposed budget estimates and justification for fiscal year 2017 for the Securities and Exchange Commission and Commodity Futures Trading Commission., 10:30 a.m.

House Rules Committee: Business Meeting: H.R. 2666: No Rate Regulation of Broadband Internet Access Act; H.R. 3340: Financial Stability Oversight Council Reform Act; H.R. 3791: To raise the consolidated assets threshold under the small bank holding company policy statement and for other purposes.

Puerto Rico Oversight, Management, and Economic Stability Act expected to be released.

"Getting Her Money's Worth: What Will It Take to Achieve Equal Pay?" discussion featuring Sens. Kirsten Gillibrand (D-NY) and Heidi Heitkamp (D-ND), 11:45 am.

BERNIE FANS LEFT'S FLAMES AGAINST FED: Liberal activists are putting a target on the Federal Reserve for the 2016 elections, much to the delight of the Bernie Sanders campaign.

Denouncing an agenda that they say tilts toward Wall Street, members of the "Fed Up" coalition on Monday unveiled a set of reforms that would alter how the central bank does business.

"No longer are we focused only on fixing the Fed's monetary policy and internal governance positions," said Ady Barkan, the group's campaign director. "We are now beginning an effort to reform the Federal Reserve itself. Peter Schroeder breaks down the fight: http://bit.ly/23yMSBH.

YOU HAVE THREE MORE DAYS TO PROCRASTINATE: For most people, tax returns are due one week from today.

This year's due date for filing federal individual income tax returns is April 18, not April 15. This is because the District of Columbia is observing Emancipation Day on April 15, which falls on a Friday, according to the Internal Revenue Service (IRS).

People living in Massachusetts and Maine have until April 19 to file their tax returns because those states observe Patriots' Day on April 18.

Those who are serving in combat zones or contingency operations or become hospitalized due to injuries from their service can have additional time to pay their taxes. Those affected by federally declared disasters might also have more time, the IRS said: http://bit.ly/1Q3tzHk.

AG GROUPS PUSH FOR PACIFIC TRADE DEAL: The nation's farmers and ranchers are putting their weight behind efforts urging Congress to pass a sweeping Asia-Pacific deal this year.

In a letter to congressional leaders on Monday, 225 food and agricultural groups called on lawmakers to move forward on the 12-nation Trans-Pacific Partnership before President Obama leaves office.

"The TPP presents a valuable opportunity for U.S. agriculture; one that we cannot afford to miss," the groups wrote. The Hill's Vicki Needham explains why: http://bit.ly/1S5QCFD.

SEC CHARGES TEXAS ATTORNEY GENERAL: The Securities and Exchange Commission on Monday charged Texas's top law enforcement official with civil securities fraud for allegedly deceiving investors in a computer company.

Texas Attorney General Ken Paxton (R) received 100,000 shares of Servergy, a Nevada-based technology company, to pitch investors on a server it was selling between 2011 and 2013, according to the SEC complaint. Servergy officials allegedly marketed the server with incorrect information, and Paxton allegedly did not disclose to investors that he would be paid a commission: http://bit.ly/1RPHyG0.

US PUBLIC PENSIONS FACE $3 TRILLION HOLE: The nation's public pension system is facing a $3.4 trillion funding hole that may force cities and states to either cut spending or raise taxes to cover future shortfalls.

The deficit in pension funds is three times more than official figures and is growing, and without an overhaul could weigh on state and local budgets and lead to Detroit-like bankruptcies, according to research reported by the Financial Times.

Joshua Rauh, a senior fellow at the Hoover Institution who put together the report, told the FT that "the pension problems are threatening to consume state and local budgets in the absence of some major changes."

"It is quite likely that over a 5- to 10-year horizon we are going to see more bankruptcies of cities where the unfunded pension liabilities will play a large role." Here's more from Vicki Needham: http://bit.ly/1Su85op.

CONSERVATIVES FIGHT ENERGY TAX BREAKS IN FAA BILL: Conservative groups that oppose a proposal to include energy tax breaks in the long-term reauthorization of the Federal Aviation Administration are vowing to take their fight to the House if the Senate moves ahead.

Americans for Prosperity and Freedom Partners said Monday that if the Senate ends up attaching energy tax provisions to the FAA bill, the organizations will ratchet up pressure on lawmakers across the Capitol to oppose the language or pass a clean-extension of FAA.

"If the Senate isn't going to do anything to stop this, we're going to put pressure on the House," Andy Koenig, senior policy advisor at Freedom Partners, said on a press call. "The House is under no obligation to take up a bunch of energy subsidies if they don't want to." The Hill's Melanie Zanona walks us through the battle: http://bit.ly/1RPHrKH.

DEMS CALL FOR GREATER NONBANK MORTGAGE OVERSIGHT: Two Democratic lawmakers are calling on the nation's top consumer protection agency to ramp up its oversight of nonbank mortgage servicers.

Sen. Elizabeth Warren (Mass.) and Rep. Elijah Cummings (Md.) asked the Consumer Financial Protection Bureau (CFPB) on Monday to identify all of and collect more data on the growing number of financial institutions other than banks that service mortgages.

Warren and Cummings pointed to recommendations from a non-partisan government watchdog report published Monday. Warren, a long-time financial industry watchdog, and Cummings, the top Democrat on the House Oversight Committee, requested the Government Accountability Office (GAO) study. I'll fill you in on the rest here: http://bit.ly/1Sc3ldc.

Did you know 67% of all job growth comes from small businesses? Read More

NIGHTCAP: Five Starbucks locations in DC will start serving alcohol and "small plates," which is millennial for paying more money for less food: https://www.washingtonian.com/2016/04/08/5-dc-starbucks-will-sell-beer-wine-small-plates-next-week/.

By Sylvan Lane

Source