WASHINGTON — Local labor leaders have planned a rally Wednesday outside the Omaha office of Sen. Ben Nelson, urging the Nebraska Democrat to support legislation that includes federal funding to help state governments balance their books.
Nelson joined Republicans in recent weeks to block legislation that included the money, along with an extension of unemployment benefits and various changes to the tax code. He has objected to the additional deficit spending without corresponding cuts. Even after being pared back, the Senate version rejected last week would have added about $33 billion to the federal budget deficit.
Mike Marvin, the retired executive director of the Nebraska Association of Public Employees/AFSCME and an organizer of the Nelson rally, said the state and those who receive state funds could have to lay off thousands to cover a substantial budget shortfall projected next year.
He said the Medicaid assistance in the pared-back version of the bill would help make up the shortfall by delivering $115 million to Nebraska.
“If we don't put people back to work, or keep people working, then the economy's just going to get worse and worse and worse. People aren't going to be paying taxes, and people aren't going to be buying things,” Marvin said. “There is good deficit spending.”
He and other labor leaders are calling on Nelson to support the bill before “all hell breaks loose.” Marvin said his union's national office called this week and asked them to turn up the heat on Nelson to back the bill before Congress takes its July 4 recess.
But Nelson told The World-Herald in an interview Tuesday that he's sticking to his position that the bill must be “paid for.” He said that the deficit is the big concern for people these days and that it's not right for the country to keep borrowing from China.
Asked about the labor group's dire predictions, Nelson noted that the Nebraska Legislature recently approved a resolution calling for the federal government to balance its budget, not one calling for Medicaid assistance.
He also said he hasn't been contacted by Gov. Dave Heineman, a Republican.
“You'd have to conclude that they don't believe it's that necessary,” Nelson said.
Earlier this year, Heineman signed a letter with 46 other governors in support of the additional Medicaid assistance but later told The World-Herald he did so only to show solidarity with his fellow governors.
Heineman spokeswoman Jen Rae Hein couldn't say Tuesday whether the governor wants the money, referring to his previous comments about solidarity. She noted that the state is budgeting under the assumption that the Medicaid assistance will not come.
“Perhaps those showing up at my office (Wednesday) could travel down to the State Capitol when they're done and make their points there, too,” Nelson said.
Like Nelson, U.S. Sen. Mike Johanns, R-Neb., has voted against the legislation, citing similar deficit concerns. The state's three House members, all Republicans, also have voted against it.
But Marvin said the labor groups are focused on Nelson because he is the lone holdout among Senate Democrats and because Republicans seem committed to being “obstructionist.”
“We've got to get the Democrats in line and get them to support this,” Marvin said.
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202-662-7270, joe.morton@owh.com
