Volatile Schedules Exacerbate Inequality
New York Times - July 23, 2014, by Carrie Gleason - Across the economy, workers are either employed for too few hours...
New York Times - July 23, 2014, by Carrie Gleason - Across the economy, workers are either employed for too few hours or far too many in an ever-changing workweek that demands 24/7 availability, without guarantees of equal treatment or employee input.
The volatile work schedules of today erode earning potential, push workers out of the work force, and exacerbate inequality, especially for women and workers of color who are more likely to work part-time jobs. For a fair paycheck, these workers need wages and hours with dignity.
Workers, especially women, are coming together to say we need a voice in how much and when we work — so we can raise our families and join the middle class. Tiffany Beroid, who worked at Walmart, and Melody Pabon, who works at the clothing store Zara, both had fluctuating part-time schedules that made it impossible to keep their kids in stable childcare and plan their own schooling.
Ms. Beroid dropped out of school for a semester because Walmart cut her hours when she requested a new schedule. Ms. Pabon took her son out of formal childcare because her part-time job didn’t pay enough to cover the cost. Ms. Beroid and Ms. Pabon are part of the movement to restore a fair workweek, organizing at their jobs and sharing their stories on Capitol Hill at the introduction of the federal Schedules that Work Act.
This legislation would set standards for low-wage occupations. It would require two weeks notice of schedule changes, notification of minimum work hours and extra pay for on-call shifts or for workers who are sent home early. It would also give workers the right to request reasonable scheduling accommodations for serious health conditions, caregiving responsibilities and school.
While companies have a choice in how they schedule employees, the personal stories we've heard show that we can’t count on companies to do the right thing on their own. Along with the federal legislation, a new bill in San Francisco would provide new protections for part-time workers.
These proposals would create a new baseline of legal protections to ensure equity in the hours we work.
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Why retailers are moving away from ‘on-call’ shift scheduling
Why retailers are moving away from ‘on-call’ shift scheduling
For more than two decades, workers in the retail and restaurant industries have struggled to balance family life and...
For more than two decades, workers in the retail and restaurant industries have struggled to balance family life and other obligations with jobs that demand they be “on call.” Now, under legal pressure and in a tightening labor market, some employers are changing their approach.
On Tuesday, the New York Attorney General’s office announced that six retailers – Aeropostale, Carter’s, David’s Tea, Disney, PacSun, and Zumiez – have agreed to end “on-call” scheduling. From now on, their employees will not need to check each day whether they should come to work, nor do they risk being sent home early without pay when the store is quiet. Four of the companies also committed to giving employees their schedules one week in advance.
Ending “on-call” scheduling will make a big difference for employees, increasing the predictability of work schedules and making it easier to plan other activities. But they aren’t the only ones who will benefit from the change, observers say: It could also bring long-term benefits for businesses and society.
“It’s a pretty significant move,” Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, tells The Christian Science Monitor in a phone interview. “Retail companies ... are really starting to recognize that they need to invest in their workforce.”
In the past, workers’ wages were considered a fixed cost, wrote Robert Reich, who served as Labor secretary during Bill Clinton’s presidency and is now a professor of public policy at the University of California at Berkeley. In the 1990s, however, wages became a variable cost: Many businesses used on-call scheduling to trim costs by having as few workers as possible. Some even deployed software systems that highlighted the times when employees were least needed.
That kind of scheduling takes a substantial toll on workers, explains Lonnie Golden, a professor of economics and labor-employment relations at Penn State University-Abington, in a phone interview with the Monitor. Professor Golden was the primary author of an April report for the Economic Policy Institute about the consequences of irregular work scheduling.
Uncertain hours make it hard for workers to plan their daily lives, says Golden. Holding down a second job becomes more difficult, uncertain paychecks mean incomes often fall short, and childcare is an increased challenge.
These employees are most likely to experience “work-life conflict” and be stressed at work, Golden notes.
That also puts businesses with “on-call” scheduling on the wrong side of some state and federal labor laws. In April, New York Attorney General Eric Schneiderman and the attorneys general of seven other states and the District of Columbia sent a letter to the six retailers asking them to end the practice, as they have now agreed to do.
Ms. Gleason points to that April letter and other, similar investigations as the "single most influential factor" in moving businesses away from these scheduling practices. Seven other businesses announced that they would end "on-call" scheduling in 2015.
But with a new presidential administration kicking off in a few weeks, the future of these investigations is uncertain.
“The incoming Labor Secretary is [at] the complete opposite end of the spectrum,” Gleason says, making it “incumbent now on states” to continue pushing for these standards.
Worker-friendly policies are becoming bipartisan causes in many states, the Monitor’s Schuyler Velasco wrote in October – and New York is one of several states working toward a legislative ban on “on-call” scheduling. In September, Seattle's city council unanimously passed a “secure scheduling” law, which requires employers to schedule their workers 14 days in advance, and includes a "right to rest" provision that allows workers to decline closing and opening shifts that are less than 10 hours apart.
Businesses themselves may have incentives to end on-call scheduling. In a tightening labor market, employers want to hang on to their workers, notes Golden, who is also a senior research analyst at the Project for Middle Class Renewal at the University of Illinois. And businesses that offer better hours – and more consistent hours – are more appealing to workers, leading to better retention.
The more businesses sign on to these measures, the more workers’ wages are taken out of the cost-cutting equation. More than 300,000 workers have been impacted so far, says Gleason.
Greater certainty about schedules has benefits beyond individual workers, she says. If people know when they’re working, they can also schedule time to be with their children, or attend college and grad school classes.
“Employees are going to be better off, and maybe even society,” she says.
By Ellen Powell
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Arizona protesters arrested at Flake’s D.C. office in health care rally
Arizona protesters arrested at Flake’s D.C. office in health care rally
WASHINGTON — As calls of “Trumpcare kills” and “health care is a human right” echoed through the halls of Capitol...
WASHINGTON — As calls of “Trumpcare kills” and “health care is a human right” echoed through the halls of Capitol office buildings Monday, Lauren Klinkhamer stood quietly in Arizona Sen. Jeff Flake’s office and told staffers, “I don’t want to die.”
The Tucson resident fears she would be among the 22 million Americans, and as many as 400,000 Arizonans, who would lose health care under a bill the Senate is considering to replace the Affordable Care Act. For Klinkhamer, who said she suffers from 16 chronic conditions, losing her coverage would be a death sentence.
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The search process for a new president of the New York Fed was seriously shady
The search process for a new president of the New York Fed was seriously shady
The New York Fed search was unusual for the public scrutiny it garnered, thanks in no small part to activists led by...
The New York Fed search was unusual for the public scrutiny it garnered, thanks in no small part to activists led by Fed Up and the Center for Popular Democracy. The two groups called on the regional bank, whose presidents have all been white men, to broaden its search and make the selection criteria more transparent.
Read the full article here.
NYC Agencies Fail to Follow Voter Registration Law
New York Daily News - October 21, 2014, by Erin Durkin - City agencies are failing to do their part to make voter...
New York Daily News - October 21, 2014, by Erin Durkin - City agencies are failing to do their part to make voter registration easier — even though they’re required to by law.
Legislation passed in 2000 mandates that 18 agencies give voter registration forms to visitors. But the Center for Popular Democracy and other non-profits found that 84% of those visitors were never offered a chance to register, according to a report to be released Tuesday.
In fact, 60% of the agencies didn’t even have any forms in the office. And 95% of the clients were never asked if they wanted to register to vote.
“This is an urgent problem which is leading to the disenfranchisement of many thousands of low-income New Yorkers,” said Andrew Friedman, the group’s co-executive director. “The city is failing to live up to its obligation.”
The group found that 30% of people who visited the city offices weren’t registered to vote, higher than the national average.
Mayor de Blasio’s spokesman Phil Walzak said Hizzoner has ordered agencies to step up their compliance with the law. “Mayor de Blasio is deeply committed to reducing barriers to voter participation, and making it simple and easy to register to vote is the first step,” he said.
Only one of the agencies, the Administration for Children’s Services, used a combined form that offers the chance to apply for ACS services, as required by the law, the report found.
Advocates say having city agencies help out with voter registration is especially important because most people nationwide sign up to vote at motor vehicle departments, but many city residents don’t drive.
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Hour by Hour: Women in Today’s Workweek
Nationwide, more than 38 million women work in hourly jobs. Most women, and most Americans, are paid by the hour, yet...
Nationwide, more than 38 million women work in hourly jobs. Most women, and most Americans, are paid by the hour, yet today’s workweek is changing—the 40 hour workweek and the 8-hour day are no longer the norm for a significant part of this workforce.
Our nation’s workplace protections are badly out of sync with the needs of today’s working families and we need policies that provide everyone an opportunity to get ahead. Particularly, labor standards have not kept up with rapid changes to the fastest growing industries like retail, healthcare, and food service. Part-time workers in the service sector—overwhelmingly women—have borne the greatest burden of these new just-intime scheduling practices, which have largely gone unregulated. But what begins in these sectors will soon spread, as the distinctions between part-time and full-time work grow increasingly blurred, and more and more Americans experience work hour instability and economic uncertainty.
Women − over a third of whom work part-time in order to juggle economic survival, family responsibilities, and advancing their careers − are at the greatest risk of being further marginalized in the workforce if unsustainable scheduling practices on the part of employers go unchecked. As we seek to create family-sustaining jobs in the burgeoning service sector, we must also consider scheduling practices in low-wage employment. Without an update to labor standards for these workers, more and more workers across the economy will be subject to this type of extreme economic uncertainty. New policies that ensure predictable schedules, give employees a voice in their schedules, ensure quality part-time employment and access to stable, full-time schedules will improve the lives of working people in general and especially benefit working women and mothers.
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'Freedom city'? Going beyond 'sanctuary,' Austin, Texas, vows to curtail arrests
'Freedom city'? Going beyond 'sanctuary,' Austin, Texas, vows to curtail arrests
While Austin is among the country’s first so-called freedom cities, it’s part of a wider movement around...
While Austin is among the country’s first so-called freedom cities, it’s part of a wider movement around decriminalizing low-level offenses and decreasing arrests. According to Local Progress, a national network of progressive city officials, some council members in El Paso and Dallas are also considering “freedom city” proposals.
Read the full article here.
FED UP ACTIVISTS: 'It has taken Gary Cohn almost 2 weeks to find the backbone to gently criticize Trump'
FED UP ACTIVISTS: 'It has taken Gary Cohn almost 2 weeks to find the backbone to gently criticize Trump'
A group of liberal activists who have pressured the Federal Reserve to keep interest rates low are calling on Gary Cohn...
A group of liberal activists who have pressured the Federal Reserve to keep interest rates low are calling on Gary Cohn, head of Donald Trump’s National Economic Council and a potential candidate to replace Janet Yellen as Fed chair, to resign.
Cohn, who is Jewish, told the Financial Times in an interview that he was disturbed by the events in Charlottesville and disappointed with the response of the president, who appeared to equate neo-Nazis and white supremacists with counterprotesters.
Read the full article here.
Newark, NJ Passes Earned Sick Days Bill by 5-0
FOR IMMEDIATE RELEASE: January 28, 2014 NEWARK CITY COUNCIL PASSES PAID SICK DAYS BILL...
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."
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Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Lawmakers' Vision for the Fed: More Diversity, More Congressional Sway
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank...
Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank boards, though they couldn't agree on how to reform the quazi-private-public firms.
The twelve regional Fed banks have come under increased scrutiny in recent months after Democratic presidential nominee Hillary Clinton issued a statement in May saying she supports removing bankers from regional Fed boards and increasing director diversity. Her comments heightened the public profile of an issue that otherwise hasn't received much focus.
A key point of debate was concerns by consumer groups that having bankers on regional Fed boards creates a conflict of interest since reserve bank staff supervise big and small commercial banks in their districts. This contrasts to the central bank in Washington, which is a government agency with governors that are nominated by the president and confirmed by the Senate.
For example, among the nine directors who serve on the New York Fed board are Morgan Stanley (MS) CEO James Gorman and two community bank chief executives.
House Republicans indicated during a subcommittee hearing of the House Financial Services Committee that they weren't overly concerned by bank CEOs serving on such quasi-private boards while Democrats questioned the diversity of the panels.
"I don't object to bankers being on the boards," Gwen Moore, D-Wisc., told reporters after the hearing. "I'm concerned about the voice of other directors who are there and their efficacy to participate fully and about mobilizing and empowering them once they are there."
Moore, the top Democrat on the Monetary Policy and Trade subcommittee, said she the boards need more diversity, noting that none of them have hired a Latino or African American as president of the regional Fed banks where they serve.
Meanwhile, demonstrators from a consortium of consumer groups calling itself "Fed Up" attended the hearing, dressed in green shirts with slogans such as "16 of 17 Fed leaders are white."
The group also took issue with bankers on the regional Fed boards and, in their view, a lack of board diversity.
"When these voices are excluded from the conversation, then our interests are excluded," Ruben Lucio, a representative from the Center for Popular Democracy and a member of Fed Up, told reporters outside of the hearing.
According to current rules, regional boards have nine directors divided into three classes. Three banking directors are elected by member banks, another three are designated by the same banks to represent the public and interests of commerce, industry, labor and consumers, and the final class is appointed by Fed governors to represent the public.
Rep. Ed Perlmutter, D-Colo., said he wanted to delve more deeply into bank executives serving on the boards but noted that the Kansas City Fed, which covers the district he represents, appears to be quite diverse based on a variety of metrics.
It "has a diverse board ethnically, gender wise, labor wise, regional within the Fed and that was the template I'm using," Perlmutter said.
Two regional Fed presidents, meanwhile, pushed back against concerns about conflicts of interest during their testimony.
Richmond Fed President Jeffrey Lacker noted that strict rules govern their conduct. "They simply have no avenue through which they can influence supervisory matters," Lacker said.
And Esther George, president of the Federal Reserve Bank of Kansas City, pointed out that bankers who serve on reserve bank boards are prohibited from participating in the selection of bank presidents.
Republicans, meanwhile, focused much of their attention on whether too much influence over monetary policy is wielded by the East Coast, particularly the New York Fed.
Rep. Bill Huizenga, R-Mich., and chairman of the monetary policy subcommittee, argued that lawmakers should back legislation he sponsored, the Federal Oversight Reform and Modernization Act, or FORM, which includes a provision that would reduce the influence of the New York bank.
The Federal Open Market Committee, the branch of the central bank that determines monetary policy, has 12 voting members made up of seven members of the Fed board of governors and five of the regional Fed banks.
The president of the New York Fed, which supervises Wall Street firms from JPMorgan Chase (JPM) to Goldman Sachs (GS) and Citigroup (C) , is a permanent voting member but the other regional bank presidents serve rotating one-year terms. Huizenga's legislation would put the New York Fed president into the voting rotation along with all the other regional bank chiefs.
"For crying out loud, the San Francisco bank has a tremendously important area," Huizenga told reporters after the hearing. "Silicon Valley, that stretches from LA to Seattle, has tremendously valuable input and to have them only be a voting member every two or three years doesn't make a lot of sense to me."
Rep. Mia Love, R-Utah, said she was concerned that the Western states weren't well represented by the regional Fed bank structure.
"You have members on both sides of the aisle expressing concerns and I would like to know what might be done to rebalance the Fed to ensure that all Americans are represented in monetary policy decisions," she said.
Don Lamson, of counsel at Squire Patton Boggs in Washington and a former regulator at the Office of the Comptroller of the Currency, suggested that if the goal is to create greater accountability to Congress, legislators should require the Fed regional bank system to be funded through congressional appropriations instead of the self-funding that exists now.
With that structure, legislators could remove the regional Fed boards, transforming the quazi-private-public entities into government agencies.
An appropriations process, however, would destroy the independence of the Fed, which is vital to setting interest rates and supervising banks appropriately, Moore argued.
Expanding legislative influence would also open Federal Reserve funding to unrelated policy measures that might be attached in an attempt to get them passed. "Come meet with me I'm the chairman of the Fed's appropriations committee," Moore said facetiously.
By Ronald Orol
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