In the wake of the hurricanes President Bush suspended the Davis-Bacon wage law, which requires federal contractors to pay at least the prevailing wage to construction workers in a local area. Even though the White House said the suspension was necessary to cut rebuilding costs and open opportunities to minority-owned companies, the move angered a number of Republicans (along with unions and other pro-worker groups), who said that it would result in lower pay for workers.

Today the administration announced they would reinstate the Davis-Bacon prevailing wage law Nov. 8 in Louisiana, Mississippi and selected other counties where it had been suspended. Part of this change of heart was due to pressure from Congressional Republicans, 37 of whom signed a letter to Bush supporting the reinstatement.

Washington Post: Prevailing Wages To Be Paid Again on Gulf Coast (10.27.05)

President Bush announced today that Ben Bernanke will replace Alan Greenspan as Chairman of the Federal Reserve Board. Greenspans' term expires January 31 of next year.

Bernanke currently serves as Chairman of the White House Council of Economic Advisors and has sought to associate himself with the policies of Greenspan, particularly regarding keeping inflation down. Bernanke stated that his first priority would be "to maintain continuity with the policies and policy strategies established during the Greenspan years."

Washington Post: "Bush Selects White House Economist Bernanke to Replace Greenspan

Colorado's harmful Taxpayer's Bill of Rights (TABOR) -- which has contributed to a significant decline in the state's public services over the last decade -- will be at the mercy of voting Coloradoans November 1. They will have the opportunity to vote on "Referendum C," which, according to the Center on Budget and Policy Priorities, "would allow the state to spend all revenues it collects under current tax rates for the next five years, even if those revenues exceed TABOR limits." The Referendum is supported by many individuals and groups, including business leaders, children’s advocates, Republican and Democrat legislators, the Denver Chamber of Commerce, and the conservative Colorado Springs City Council.

A new CBPP report, "A Formula For Decline: Lessons From Colorado for States Considering TABOR," outlines the consequences other states would face if they instituted TABOR-like restrictions on their spending. TABOR, year after year, has created a maximum expenditure level in Colorado that is below what is needed for many programs, and the funding cuts have had severe effects on Colorado schools, health care programs, and other vital services.

The Senate voted this afternoon 47 - 51 against raising the minimum wage to $6.25. 42 Democrats, 4 Republicans (Chafee, DeWine, Santorum, and Specter), and Independent Jim Jeffords (VT) voted in favor of the increase. The minimum wage has not been increased for over 8 years, the second longest drought on record.

This article in today's Washington Post noted that both inflation and consumer prices are up sharply. The CPI, which rose 4.7 percent over the past year, saw the biggest 12-month increase since May, 1991. The Post reported that Social Security payments will increase 4.1 percent in January for more than 50 million retired and disabled workers. The increases will help recipients keep up with inflation, which was up last year mainly because of rising energy costs. Energy prices were up 35 percent over the past 12 months.

After Hurricane Katrina, President Bush waived wage protections established under the Davis-Bacon Act that require federal contractors to pay area prevailing wages. While some have speculated on the legality of this decision, it has flat out angered a substantial number of House members from the President's own party, who sent a letter to him in late September expressing their outrage.

This week, Rep. LaTourette (R-OH) - the member who spearheaded the effort to rally 36 other Republicans against the waiver - announced on the House floor he would be seeking legislative action to reinstate Davis-Bacon requirements. "I don't know exactly what we have in mind yet, but I think the week of the 17th [of October] there may be some activity," LaTourette said.

Democrats in the House have already taking action to attempt to reverse Bush's decision. Rep. George Miller (D-CA) has introduced a bill, H.R. 3763, that will require the re-application of Davis-Bacon wage requirements to the areas affect by Hurricane Katrina. It is widely agreed the bill would pass it voted upon, but the House GOP leadership has continued to block any such vote.

Make Your Voice Heard
The Campaign for America's Future has launched a letter writing campaign to raise support for reinstating Davis-Bacon requirements.