Spratt Statement at Hearing on Recovery Act

ouse Budget Committee Chairman John Spratt made the following opening statement at a hearing today, “The Recovery Act: Strengthening Our Economy.” The committee received testimony from three cabinet secretaries – Interior Secretary Ken Salazar, Agriculture Secretary Tom Vilsack, and Transportation Secretary Ray LaHood.

“Seven months ago, when President Obama took office, the country was in a fiscal tailspin and on the brink of a financial meltdown: a financial crisis had frozen credit, homes were foreclosing at record levels, the economy was losing an average of 700,000 jobs per month, and the stock market had lost nearly $10 trillion in wealth and was heading further downward. Congress and the Obama Administration took quick action to address the crisis. In February, we enacted the American Recovery and Reinvestment Act to create and save jobs through short-term investments that have both immediate and long-term economic impacts.

“That action has gradually begun to bear fruit, although we still have a long way to go before we return to where we want to be. It took years for the problem to build, and it will take time to recover fully. But we are no longer dealing with as severe a financial and economic crisis as we faced at the beginning of the year. While the country has lost 6.5 million jobs since the recession began in December 2007 – by far the worst postwar downturn in employment – we have now slowed the rate of job loss. The housing market is picking up again. Retail sales are turning up, and the forecast is for the economy to grow in the third quarter.

“Because so many Americans are continuing to experience the negative impact of this recession, even encouraging signs such as these cannot come fast enough. Yet, the Recovery Act is beginning to provide stability to get the economy moving and bolster hard-hit families, businesses, and states. Already, the Recovery Act has provided a tax credit for 95 percent of working families, assisted more than 12 million jobless Americans with extra unemployment benefits, and increased food assistance to low-income families. Already, states have drawn down more than $23 billion in additional Medicaid funds as they deal with record budget shortfalls. And the Recovery Act has already allowed tens of thousands of teachers, law enforcement, and firefighters to keep their jobs.

“I know that we all share the goals of putting people back to work and lowering the unacceptably high unemployment rate, of ensuring that local communities don’t have to lay off teachers and firefighters due to budget shortfalls, and providing necessary health care and food assistance to those who need help during this economic downturn. While we in Congress may have had disagreements at the time that the economic recovery legislation was passed, I believe it is important for all of us to come together to assess the results to date, to examine what is working and what needs more attention, and to consider the next steps in the country’s recovery.

“The economic recession that began during the previous Administration also has taken its toll on the federal budget, leaving the Obama Administration and this Congress with a massive deficit. Efforts to combat the economic decline – like the Recovery Act – have necessarily eroded the budget’s bottom line even further, and we must first get the economy back on track before we can balance the budget. At the same time, the unacceptably large deficits that we now are facing give us all the more reason why we need to ensure that the stimulus dollars are being spent as effectively as possible.

“We are fortunate today to have three of the most important people charged with implementing key components of the Recovery Act. They are – in the order of when their agencies were incorporated: Ken Salazar, Secretary of the Interior; Tom Vilsack, Secretary of Agriculture; and Ray LaHood, Secretary of Transportation. These three gentlemen need no introduction; they have years of experience working to improve the lives of Americans across the country through their various positions in business, government administration, and politics – we have a former governor, Senator, and Representative here.

“We look forward to hearing how your agencies are using the Recovery Act to provide immediate relief, to save and create new jobs, and lay the groundwork necessary for future investments in our physical and human infrastructure. Each of your agencies is focusing on different aspects of the Recovery Act, and we are interested in what you have to report after these first few months of implementation.

“We very much appreciate your joining us today. Before turning to you for your testimony, let me turn to our Ranking Member, Mr. Ryan, for any statement he cares to make.”

Spratt Opening Statement at Hearing on Statutory PAYGO Legislation

WASHINGTON – House Budget Committee Chairman John Spratt (D-SC) made the following opening statement at a hearing today on Statutory PAYGO legislation.

“The purpose of today’s hearing is to review statutory Pay-As-You-Go (PAYGO) and examine the President’s proposal to renew it. We initially had planned this hearing for last Thursday and I would like to thank both our witnesses and our Ranking Member, Mr. Ryan, for their cooperation in helping us reschedule it for today.

“At the outset of the 1990s, Congress passed the Budget Enforcement Act to ensure that the Budget Summit Agreement was carried out. Among its provisions was a rule called ‘pay-as-you-go’ or PAYGO for short. Critics disdained our resort to budget process. They accused us of dodging the hard choices we had to make if we were going to wipe out the deficit. But by the end of the 1990s, the budget was in surplus for the first time in 30 years; and it was clear that process rules like PAYGO played a big part in our success.

“Republicans were in the majority in 2002 when the Budget Enforcement Act expired, and they chose not to reinstate PAYGO, knowing that it would impede passage of their tax cutting agenda. Without the process rules, the budget plunged from a surplus of $236 billion in the year 2000 to a deficit of $413 billion in the year 2004.

“When Democrats took back the House, the reinstatement of PAYGO was at the top of our agenda. We made PAYGO a rule of the House the first day we convened the 110th Congress.

“Two weeks ago, the President proposed a bill to make PAYGO statutory, and last week that bill was introduced -- with over 150 co-sponsors -- as a starting point toward making statutory PAYGO part of our budget process.

“The Obama Administration and the current Congress have inherited a colossal deficit, swollen this year to accommodate needed recovery measures. As these measures pull us out of the slump, we must focus attention on our longer-term fiscal fate. Earlier this month, Chairman Bernanke told our Budget Committee that the long-run fiscal path is simply not sustainable.

“Statutory PAYGO works because it reins in new entitlement spending and new tax cuts. Both tend to be long lasting – easy to pass, hard to repeal. By insisting on offsets and deficit neutrality, PAYGO buffers the bottom-line. Its terms are complex, but at its core, it is a common-sense rule that everyone can understand: when you are in a hole, stop digging.

“We share the Administration’s commitment to fiscal discipline, and believe that statutory PAYGO will put greater rigor into the budget process. To help us better understand the proposed legislation, our first witness will be no stranger to this Committee, former CBO Director and now OMB Director Peter Orszag. Then, on a second panel, we have lined up additional distinguished experts who are also old friends of the Budget Committee:

· Robert Greenstein is the founder and Executive Director of the Center on Budget and Policy Priorities and provides expertise on a wide range of budget policies.

· Douglas Holtz-Eakin, served as the sixth director of CBO and also worked with George H. W. Bush and George W. Bush on economic policy.

· We had originally planned for Alice Rivlin to testify, as well, but with the schedule change for the hearing, she cannot be with us in person today, but, without objection, her written testimony will be included as part of the record. As you know, she is senior fellow at the Brookings Institution and formerly served as director of OMB during the Clinton Administration and also as director of CBO from 1975 through 1983, at the onset of our current budget process.

“Before turning to Director Orszag for his testimony, however, let me turn to Mr. Ryan for any opening statement he may wish to make.”

Spratt Helps to Pass Bill to Compensate More Disabled Military Retirees

U.S. Rep. John Spratt (D-SC) today helped to pass a bill to compensate more disabled military retires. The “Disabled Military Retiree Act” (HR 2990) would allow more service members who have been retired for severe disability to receive both military retirement benefits and VA disability compensation without an offset. As chairman of the Budget Committee, Spratt worked to find ways to pay for the bill within the budget, assuring passage in the House. The vote was 404 to 0.

“Our veterans and their families have sacrificed greatly,” said Spratt. “This small step will give them full access to the benefits they deserve, without adding to the deficit.”

Spratt said the bill covers more “Chapter 61” retirees — those forced by their disabilities to retire before they could complete 20 years of service and could earn military retirement benefits based on the longevity of their service. They currently receive only military benefits that are offset by their VA disability compensation.

To qualify to receive both without an offset, service members must have been medically retired from the military and have been rated either 100 percent disabled or 90 percent disabled. The period of eligibility would begin on January 1, 2010 and end on September 30, 2010.

Spratt said the bill is a temporary fix but that Congress is working to find a permanent solution to the compensation problem.

Tonight: John Spratt to Appear on PBS’s Nightly Business Report

House Budget Committee Chairman John Spratt tonight will offer commentary on the budget on PBS’s Nightly Business Report. Check your local listings for times.

Spratt Statement on the Introduction of Statutory PAYGO Legislation

WASHINGTON – House Budget Committee Chairman John Spratt made the following statement at a press conference today announcing the introduction of statutory PAYGO legislation in the House.

“I’m pleased to join arms with the Majority Leader, Steny Hoyer; the OMB Director, Peter Orszag; and with Blue Dogs and a host of others concerned about fiscal soundness. We have a common purpose: to make pay-go statutory, and add it to our tool kit of budget rules.

“At the outset of the 1990s, Congress passed the Budget Enforcement Act to ensure that the Budget Summit Agreement was carried out. Among its provisions was a rule called ‘pay-as-you-go’ or PAYGO for short. Critics disdained our resort to budget process. They accused us of dodging the hard choices we had to make if we were going to wipe out the deficit. But by the end of the 1990s, the budget was in surplus for the first time in 30 years; and it was clear that process rules like PAYGO played a big part in our success.

“Republicans were in the majority in 2002 when the Budget Enforcement Act expired, and they chose not to reinstate PAYGO, knowing that it would impede passage of their tax cutting agenda. Without the process rules, the budget plunged from a surplus of $236 billion in the year 2000 to a deficit of $413 billion in the year 2004.

“When Democrats took back the House, the reinstatement of PAYGO was at the top of our agenda. We made PAYGO a rule of the House the first day we convened the 110th Congress.

“Last week, the President proposed a bill to make PAYGO statutory – and today we introduce that bill as a starting point toward making statutory PAYGO part of our budget process. Tomorrow the House Budget Committee will hold a hearing to explore our bill with OMB Director Orszag as lead witness. We have begun the process of meeting with various groups and gathering feedback on the proposal. The House is likely to make changes to the Administration’s bill before passing it, but if we differ a bit on the means, we are in full agreement on the end, which is to make PAYGO a prevailing rule.

“The Obama Administration and the current Congress have inherited a colossal deficit, swollen this year to accommodate massive recovery measures. As these measures pull us out of the slump, we must focus attention on our longer-term fiscal fate. Two weeks ago, Chairman Bernanke told our Budget Committee that the long-run fiscal path is simply not sustainable.

“Statutory PAYGO works because it reins in new entitlement spending and new tax cuts. Both tend to be long lasting – easy to pass, hard to repeal. By insisting on offsets and deficit neutrality, PAYGO buffers the bottom-line. Its terms are complex, but at its core, it is a common-sense rule that everyone can understand: when you are in a hole, stop digging.

“We share the Administration’s commitment to fiscal discipline, and believe that statutory PAYGO will put greater rigor into the budget process. I look forward to working with all interested parties as we move statutory PAYGO through Congress.”

Community Health Centers Receiving Recovery Act Funds

WASHINGTON – Four community health centers in the 5th Congressional District are receiving funds made available by the American Recovery and Reinvestment Act, according to U.S. Rep. John Spratt (D-SC).

“People who lose their health insurance are turning to health centers for care,” said Spratt. “These funds will help the centers provide care to more patients during this recession, and create or retain health center jobs.”
Health centers deliver preventive and primary care services to patients regardless of their ability to pay; charges for services are set according to income. Health centers served more than 16 million patients nationwide in 2007, about 40 percent of whom had no health insurance.

The following health centers in the 5th District are receiving funds.

Health Center - City - Amount
CareSouth Carolina - Hartsville - $614,758
Community Medicine Foundation - Rock Hill - $225,857
HopeHealth, Inc. - Florence - $126,933
Sumter Family Health Center - Sumter - $231,126

5th District Counties Receiving Recovery Act Funds for Emergency Food and Shelter Programs

All counties in the 5th Congressional District are receiving funds through the Recovery Act for Emergency Food and Shelter Programs, according to U.S. Rep. John Spratt (D-SC).

“These funds will be used to supplement food, shelter, rent, mortgage, and utility assistance for people with non-disaster related emergencies,” said Spratt. “The goal is to bring immediate relief to communities to address unemployment and poverty. I am delighted all the counties in the 5th District are receiving funding.”

The counties in the 5th District are receiving the following amounts through the Department of Homeland Security’s Emergency Food and Shelter Program.

County - Amount
Cherokee - $26,988
Chester - $20,848
Chesterfield - $19,691
Darlington - $30,375
Dillon - $15,354
Fairfield - $13,634
Florence - $50,066
Kershaw - $22,349
Lancaster - $36,817
Lee - $8,694
Marlboro - $16,480
Newberry - $14,760
Sumter - $40,924
York - $86,758

Progress for the American People

The 111th Congress is off to a strong start, working with President Obama to take America in a New Direction, to turn our economy around and create good jobs, with common sense reforms and targeted investments in: affordable health care, clean energy jobs, educational excellence, fiscal responsibility, and tax fairness.

RECENTLY SIGNED INTO LAW

CREDIT CARDHOLDERS’ BILL OF RIGHTS, to provide tough new protections for consumers by banning unfair rate increases, abusive fees, and penalties—such as retroactive rate hikes on existing balances and double-cycle billing -- giving consumers clear information, and strengthening enforcement.

MILITARY PROCUREMENT REFORM, to crack down on Pentagon waste and cost overruns, which GAO says amount to $296 billion just for the 96 largest weapons systems, by dramatically beefing up oversight of weapons acquisition, promoting greater use of competition, and curbing conflicts of interest.

HELPING FAMILIES SAVE THEIR HOMES ACT, building on the President’s housing initiative, to provide significant incentives to lenders, servicers, and homeowners to work together to modify loans and to avoid foreclosures, which cost families their homes every 13 seconds in America.

FIGHTING MORTGAGE AND CORPORATE FRAUD & CREATING COMMISSION ON CAUSES OF CRISIS, to provide tools for prosecuting the mortgage scams and corporate frauds that contributed to the worst financial crisis since the Great Depression; and to create an outside commission to examine its causes.

SIGNED INTO LAW EARLIER THIS YEAR

AMERICAN RECOVERY AND REINVESTMENT ACT, enacted in the first month of President Obama’s term, to jumpstart our economy, create and save 3.5 million jobs, give 95% of American workers a tax cut, and begin to rebuild America’s road, rail, and water infrastructure, with unprecedented accountability measures -- no earmarks, new state whistleblower protections, and an historic degree of transparency at www.recovery.gov.

HEALTH CARE FOR 11 MILLION CHILDREN, to finally provide cost-effective health coverage for 4 million more children whose parents earn too little to provide their own insurance, but too much to qualify for Medicaid, and preserve coverage for 7 million children already enrolled.

LILLY LEDBETTER FAIR PAY ACT, to restore the rights of women and other workers to challenge unfair pay—to help close the wage gap where women earn 78 cents for every $1 a man earns in America.

OMNIBUS PUBLIC LAND MANAGEMENT ACT 0F 2009, the most significant conservation bill in 15 years, to boost economic development and tourism at 160 mostly rural American sites; creating 2 million new acres of wilderness across 9 states; establishing 3 new national park units; designating 1,000 miles of wild and scenic rivers; and designating a National Monument and 3 National Conservation Areas.

EDWARD M. KENNEDY SERVE AMERICA ACT, tripling volunteerism opportunities for national service to enroll 250,000 students to retirees; creating new service corps for education, health care, energy and veterans; establishing a Summer of Service for middle and high school students; and increasing college financial awards.

STRENGTHENING OVERSIGHT OF TARP, to expand the authority of the TARP Special Inspector General, to help ensure that taxpayers’ funds are effectively used to get credit flowing to businesses and families.

PASSED BY HOUSE AND SENATE

BUDGET RESOLUTION, reflecting the President’s plan to get the economy moving again, by cutting taxes for middle-income families by $1.5 trillion and creating jobs with targeted investments in health care, clean energy and education – while cutting the deficit by nearly two-thirds by 2013.

PASSED BY HOUSE

WAR SUPPLEMENTAL BILL, to provide funds for the remainder of FY 2009 to provide our troops in harm’s way with what they need, implement the President’s plans for winding down the war in Iraq and changing strategy in Afghanistan, require a report on progress, and fund pandemic flu response.

MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT, to stop the predatory and irresponsible mortgage loan practices that played a major role in the current financial meltdown and to help ensure that the mortgage industry follows basic principles of sound lending and consumer protection.

PUTTING 50,000 COPS ON THE BEAT, to authorize $1.8 billion a year for COPS grants over the next five years, which will fund putting an additional 50,000 police officers on the street across the country.

GREEN SCHOOL MODERNIZATION, to provide critical investments to modernize, renovate, and repair school facilities across the country, while encouraging energy efficiency and creating nearly 140,000 new jobs.

WATER QUALITY INVESTMENT ACT, to launch clean water projects for families and communities across America, creating an estimated 680,000 jobs over the next five years.

REDUCING MILITARY FAMILIES TAX, which currently unfairly penalizes the 55,000 surviving spouses of military personnel who died as a result of their service-connected injuries.

PAY FOR PERFORMANCE ACT, to prohibit unreasonable or excessive compensation and non-performance-based bonuses for executives at companies receiving TARP funds, to stabilize our financial system.

Spratt Statement on Obama Administration’s Pay-As-You-Go (PAYGO) Proposal

House Budget Committee Chairman John Spratt issued the following statement on the Obama Administration’s PAYGO proposal, which was announced by the President today at the White House.

“At the outset of the 1990s, Congress passed the Budget Enforcement Act to ensure that the Budget Summit Agreement was carried out. Among its provisions was a rule called ‘pay-as-you-go’ (PAYGO). Critics disdained our resort to budget process. They accused us of dodging the substantive issues we had to face if we were going to wipe out the deficit. But by the end of the 1990s, the budget was in surplus for the first time in 30 years; and it was clear that process rules like PAYGO played a big part in our success.

“Republicans were in the majority in 2002 when the Budget Enforcement Act expired, and they chose not to reinstate PAYGO, knowing that it would impede passage of their agenda. Without the process rules, the budget plunged from a surplus of $236 billion in 2000 to a deficit of $413 billion in 2004.

“When Democrats took back the House, the reinstatement of PAYGO was at the top of our agenda. To expedite passage, PAYGO was made a rule of the House the first day we convened the 110th Congress.

“Today, we take another, longer stride towards budget discipline. The President is proposing a bill to make PAYGO statutory. I share the Administration’s commitment to fiscal discipline, and believe that statutory PAYGO will help put greater rigor back in the budget process.

“The Obama Administration and the current Congress have inherited a colossal deficit, swollen largely to accommodate massive recovery measures. As these measures pull us out of the slump, we must focus attention on our longer-term fiscal fate. Last week, Chairman Bernanke told our Budget Committee that the long-run fiscal path is simply not sustainable.

“Statutory PAYGO is effective because it restrains new entitlement spending and new tax cuts. Both tend to be permanent – easy to pass, hard to repeal. PAYGO buffers the bottom-line, insisting on offsets and deficit neutrality. Its terms are complex, but at its core, it is a common-sense rule that everyone can understand: when you are in a hole, you should quit digging.

“The President, the House Democratic leadership, and members of the Blue Dog Coalition have spearheaded this initiative. I welcome their efforts and look forward to working with all interested parties as we move statutory PAYGO through Congress.”

Spratt Votes to Honor “Race for the Cure”

U.S. Rep. John Spratt (D-SC) joined a majority of his House colleagues on Wednesday in passing a resolution honoring the 20th anniversary of the Susan G. Komen Race for the Cure in Washington D.C. Spratt cosponsored the resolution, which remembers the women and men who have lost their lives to breast cancer, expresses support for those who have survived, and honors all those who participate in the race and help raise money for research, education, and awareness.

The Susan G. Komen Foundation has invested more than $1.3 billion in breast cancer research, treatment, and education, and has developed a large and strong community of breast cancer survivors. The foundation's signature fundraiser is the Race for the Cure, a 5K run or walk that will be held on the National Mall on June 6 in Washington this year.

"The contributions that the Susan G. Komen Foundation has made to breast cancer research over the years are tremendous,” Spratt said. “Numerous lives have been helped by the remarkable efforts of the foundation and its participants."

Up to 75% of the money raised for the Washington, D.C. fundraiser will be donated to local screening, treatment, and education programs. Over 120 races are held across the world every year to raise awareness and funds for breast cancer research and education.

The resolution (H. Con. Res. 109) passed the House unanimously on June 3, 2009 and now goes to the Senate for consideration.

Spratt Votes to Pay Tribute to Native Americans

U.S. Rep. John Spratt (D-SC) joined a majority of his House colleagues to pass legislation that encourages the designation of the Friday after Thanksgiving as Native American Heritage Day. This day would pay tribute to Native Americans and acknowledge the many contributions they have made to the United States.

“Recognizing the role Native Americans have played in our history and shaping our culture is significantly important,” Spratt said. “Native Americans have fought and died in every American war and it is critical we honor their contributions and use this day to preserve their rich history and heritage.”

This bill aims to increase awareness of the important part Native Americans and their ancestors have played in the formation of our nation. They have made countless cultural contributions in the areas of art, science, sports, and much more. The bill also encourages U.S. public schools to enhance understanding of Native Americans by providing curricula and classroom instruction focusing on the achievements and contributions of Native Americans.

The Native American Heritage Day Act of 2009 (H.J. Res 40) passed the House unanimously on June 2 and now goes to the Senate for consideration.

Spratt Opening Statement at Hearing with Fed Chairman Bernanke

House Budget Committee Chairman John Spratt made the following opening statement at a hearing today, “Challenges Facing the Economy: The View of the Federal Reserve,” with Federal Reserve Chairman Benjamin S. Bernanke.

“We meet to hear the distinguished Chairman of the Federal Reserve, Benjamin Bernanke, testify on the recession plaguing our economy and on the prospects of recovery.

“Chairman Bernanke testified before our committee on October 20 of last year, as we searched for ways to mitigate, if not avoid, a long recession. The Chairman acknowledged then that monetary policy has its limits, and without being specific, welcomed a fiscal complement.

“Congress had just passed a bi-partisan bill authorizing $700 billion to dispose of troubled assets–so-called TARP. Backed by these funds, the Treasury, Fed, and FDIC made extraordinary advances to banks and other financial institutions, recognizing what Chairman Bernanke told the Joint Economic Committee last month, that ‘a sustained recovery in economic activity depends critically on restoring stability to the financial system.’ This is one question we hope you will address: How strong are our financial institutions?

“By February of this year, it was clear that TARP relief was a necessary but not sufficient solution. So, Congress passed, on a partisan basis, an even bigger boost, the Recovery and Reinvestment Act, which packed $787 billion of fiscal stimuli, in the form of spending increases and tax decreases. We would like to know, Mr. Chairman, whether from the Fed’s viewpoint, this huge counter-cyclical thrust is working.

“Bold action was necessary to head off a collapse of the financial system, but the steps taken also swelled the nation’s deficit and the national debt. It’s all but impossible to balance the budget when the economy is bucking a headwind like this recession, because what we do to make the economy better is likely to make the deficit worse.

“Yet at the same time, we cannot add infinitely to the national debt, without facing the consequences in the global credit markets, or on our future capacity to borrow. One purpose of this hearing is to explore both the advantages and the potential downside risks of our bold and unprecedented response to financial turmoil. Should we be concerned that some of our swelling debt must be financed with foreign credit?

“We hope that most of our outlays are for non-recurring needs, and that much of what has been advanced in recent months will, in time, be recovered, and used to pay down the debt we are incurring. We would like to have your assessment, Mr. Chairman, of that possibility.

“Despite bold, unprecedented action, the Director of the Congressional Budget Office told this committee on May 21st that our economy was still running at 7% or more below capacity, or a trillion dollars per year below its potential. Recently, there have been signs of a turn-around: business inventories are down, the stock market is up, and so to some extent, is the housing market. Our question to you, Mr. Chairman, is whether these are glimmers or hope or flashes in the pan.

“To keep this recession from growing worse, the Fed has pumped enormous liquidity into the money markets, so much that some critics even worry of inflation, just over the horizon. The spread between short and long term Treasuries has widened to more than 2.5 percentage points. We would like to know, Mr. Chairman, if these are salutary signs of recovery or ominous signs of inflation?

“A month ago, Chairman Bernanke told the Joint Economic Committee that ‘we expect economic activity to bottom out, then turn up later this year, but he went on to warn that “even after the recovery gets underway, the rate of real economic growth is likely to remain below its potential for a while...only gradually gaining momentum.’

“The old locomotives that pulled the economy out of the rut in the past — real estate and consumer durables — are unavailing now. This causes us to ask: what will empower a turn-around in this dismal economy? And when can we expect a return to normality?

“Mr. Chairman, we have a lot of grist for our mill. We thank you for being here, but above all, for your service to our nation at a very crucial time. Before proceeding with your statement, let me turn to Mr. Ryan for his opening remarks.”

Stimulus Funds Flowing Into Darlington County

Funds from the Recovery Act have begun to flow into Darlington County, according to U.S. Rep. John Spratt (D-SC).

Spratt said that one of the latest recipients of stimulus money is the Society Hill Library, which is receiving $787,200 through the Agriculture Department’s Community Facilities program. The program helps to finance and develop community facilities for public use in rural areas. Spratt said the library would use the money to build a new, larger library building to house the Society Hill library collection.

“This project is one of many in the Recovery Act aimed at creating or saving jobs and helping rural communities expand their services,” said Spratt. “I was pleased to learn that the library will be receiving funding.”

President Obama signed The American Recovery and Reinvestment Act of 2009 (Recovery Act) into law on Feb. 17, 2009. It is designed to jumpstart the nation's economy, create or save millions of jobs and put a down payment on addressing long-neglected challenges. The Act includes measures to modernize the nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

Spratt said other Recovery Act funds are slated for Darlington County, including:

* $614,758 for CareSouth Carolina, of Hartsville

* $80,000 for repairs to the Darlington Armory

* $30,375 for the Emergency Food and Shelter Program

“These funds are just a few examples of the Recovery Act at work,” said Spratt. “Hopefully, stimulus funding will blunt the impact of the recession and help our economy recover.”

House Passes Bill To Curb Abusive Lending Practices

The U.S. House of Representatives passed a bill to curb abusive practices and predatory lending in the mortgage industry. Rep. John Spratt (D-SC) voted for the bill, which passed the House on May 7.

The Mortgage Reform and Anti-Predatory Lending Act, H.R. 1728, outlaws many of the worst actions that marked the subprime lending boom and led to the nation’s highest foreclosure rate and deepest recessions in decades.

“This recession is not a garden variety recession,” said Spratt. “A core component is the large number of Americans who lost their homes due to foreclosure. With this bill, we are ensuring that a financial crisis like this, which started with irresponsible subprime lending, never happens again.”

H.R. 1728 prohibits lenders from steering borrowers into higher cost loans. It also prevents borrowers from deliberately misstating their income to qualify for a loan. For the first time, it holds accountable all of those who originate and sell and buy loans, including Wall Street firms that buy up and bundle mortgages for profit.

In addition, the bill sets new standards for all home loans. Under the new rules, institutions will be required to ensure that borrowers can repay the loans they are sold; refinancing must benefit the consumer; and fully documented loans will be encouraged.

“I was pleased to vote for this bill and see it pass the House,” Spratt said.

House Passes Bill To Curb Abusive Lending Practices

The U.S. House of Representatives passed a bill to curb abusive practices and predatory lending in the mortgage industry. Rep. John Spratt (D-SC) voted for the bill, which passed the House on May 7.

The Mortgage Reform and Anti-Predatory Lending Act, H.R. 1728, outlaws many of the worst actions that marked the subprime lending boom and led to the nation’s highest foreclosure rate and deepest recessions in decades.

“This recession is not a garden variety recession,” said Spratt. “A core component is the large number of Americans who lost their homes due to foreclosure. With this bill, we are ensuring that a financial crisis like this, which started with irresponsible subprime lending, never happens again.”

H.R. 1728 prohibits lenders from steering borrowers into higher cost loans. It also prevents borrowers from deliberately misstating their income to qualify for a loan. For the first time, it holds accountable all of those who originate and sell and buy loans, including Wall Street firms that buy up and bundle mortgages for profit.

In addition, the bill sets new standards for all home loans. Under the new rules, institutions will be required to ensure that borrowers can repay the loans they are sold; refinancing must benefit the consumer; and fully documented loans will be encouraged.

“I was pleased to vote for this bill and see it pass the House,” Spratt said.

Spratt Helps Secure $1.4 million for Statewide Fiber Optic Network

WASHINGTON – U.S. Rep. John Spratt (D-SC) helped secure $1.4 million to develop the Clemson University Cyberinstitute (CUCI), which will deploy a state-of-the-art fiber optic network for the state. The money was included in the omnibus spending bill for fiscal year 2009.

“There is an urgent need in South Carolina for a fiber optic network,” said Spratt. “South Carolina missed the early cyberinstitute (CI) wave of the late 1990’s. This project will allow us to catch up and even surpass other leading CI centers in the country.”

Spratt said the key to CI integration is the Clemson University Lambda Rail (CULR) Portal, a single-point access conduit to the National Lambda Rail (NLR) and other national super-high-speed fiber optical research networks. CULR provides network connectivity and operations center services for a potential statewide fiber optic network, which would support research, health sciences, and instruction. The funds will also be used to extend the foundational CULR fiber optic network portal beyond Upstate South Carolina to Columbia, Charleston, and other areas that have research and education centers, thereby forming the optical fiber backbone of a statewide Lambda Rail. The project is expected to bring new technology jobs to the state.

Spratt Secures $1.6 Million for National Advocacy Center

WASHINGTON – U.S. Rep. John Spratt (D-SC) secured $1.6 million for the Ernest F. Hollings National Advocacy Center (NAC) in Columbia. The funds were part of the omnibus spending bill for fiscal year 2009.

“This funding means that state and local prosecutors from across the country can have the training they need to be skilled, effective, more professional prosecutors,” Spratt said. “I was pleased to help get the funds through Congress.”

The NAC is a joint venture between the Department of Justice (DOJ) and the National District Attorneys Association (NDAA) and is located on the campus of the University of South Carolina in Columbia. The facility was created specifically to train federal, state, and local prosecutors in advocacy skills and management. Since 1997, 22,000 prosecutors from across the country have benefited from the program, making it a vital resource for the professional education of America’s prosecutors.

Last year, after the NAC was burdened by layoffs and cancelled classes, Spratt sponsored a bill, signed by President Bush, to address funding uncertainty and shortfalls at the NAC. Spratt’s bill authorized up to $4.75 million each year over five years (FY09-FY12) for a Justice Department grant program to support training for state and local prosecutors. The $1.6 million for fiscal year 2009 is part of that grant program.
“The classes and other programs at the NAC seek to strengthen a prosecutor’s advocacy skills by offering a wide range of specialized subjects, from child abuse to gang crime to cyber crime and identity theft. These programs are worthy of funding,” Spratt said.

Spratt Announces High School Art Winners

See photos here.

WASHINGTON — U.S. Rep. John Spratt (D-SC) announced today the winners of the annual high school art competition, An Artistic Discovery.

The contest drew 37 entries from 7 schools in the 5th Congressional District of South Carolina. Marie Cheek, Associate Professor of Art at Clinton Junior College, Rock Hill, judged this year’s show. The Arts Council of York County co-sponsored the contest.

Spratt opened the exhibit at a public reception on May 3 at the Center for the Arts in Rock Hill. He was joined by Cheek and Debra Heintz, Executive Director of the Arts Council of York County.

“We are very proud to be part of this nationwide art competition, which provides Members of Congress an excellent opportunity to showcase the talents of their creative high school constituents and acknowledge our nation’s gifted young artists,” said Spratt, a member of the Congressional Arts Caucus.

“Since this competition was created in 1982, hundreds of high school students have participated at the local level. The first place winner will have their winning entry displayed at the U.S. Capitol for one year, and will be eligible for scholarship opportunities from the Savannah College of Arts and Design.

“This remarkable exhibit represents the combined efforts of the members who conducted these contests and the talented students who participated in this exciting competition,” Spratt said.

Winners

First Place
Katherine Keener, Northwestern High School, Rock Hill
Title: “Memories”
Medium: Colored Pencil
Teachers: Kim Grant, Jessica Calloway, Sandra Queen

Second Place
Chelsea Walker, Fort Mill High School
Title: “In the Darkness”
Medium: Colored Pencil
Teachers: Judith Vokes, Susan Miller

Third Place
Ashley Adams, Northwestern High School, Rock Hill
Title: “Teenage Snapshot”
Medium: Colored Pencil
Teachers: Kim Grant, Jessica Calloway, Sandra Queen

Honorable Mention
Emily Varnadore, South Pointe High, Rock Hill
Brittney Olney, Rock Hill High
Emilia Munoz-Bowman, Rock Hill High
Jordan Hennings, Sumter High
Taylor Swiney, Rock Hill High

Spratt Votes to Protect Credit Card Customers

WASHINGTON – U.S. Rep. John Spratt (D-SC) voted to provide credit card customers with fundamental protections against unfair and deceptive credit card practices, such as due-date gimmicks, double-cycle billing, excessive fees, and issuing cards to minors.

The Credit Cardholders’ Bill of Rights (H.R. 627) passed the House on April 30 by a vote of 357-70.

“This legislation will help to level the playing field between customers and credit card companies and give consumers the tools to manage their credit responsibly”, said Spratt.

The Credit Cardholders’ Bill of Rights will:


· Protect cardholders against arbitrary interest rate increases

· Prevent cardholders who pay on time from being unfairly penalized

· Protect cardholders from due-date gimmicks

· Prevent companies from using misleading terms and damaging consumers’ credit ratings

· Empower cardholders to set limits on their credit

· Require card companies to fairly credit and allocate payments

· Prohibit card companies from imposing excessive fees on cardholders

· Protect vulnerable consumers from high-fee subprime credit cards

· Bar issuing credit cards to vulnerable minors

Spratt To Kick Off High School Art Show

WASHINGTON — U.S. Rep. John Spratt (D-SC) will kick off An Artistic Discovery, the annual art show for high school students in the 5th Congressional District, on Sunday, May 3, in Rock Hill.

Spratt will be on hand for an opening reception that starts at 3:00 p.m. at the Center for the Arts, 121 E. Main Street. The reception is free and open to the public. Spratt will recognize first, second, and third place winners and honorable mentions.

This year’s judge is Marie Cheek, Associate Professor of Art at Clinton Junior College. The Arts Council of York County is co-sponsor of the event.