November 9, 2006

Mak Koebig
2006 BUILD-PAC Chairman
 
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2006 Election Overview-- Special Edition

General Overview

The November 7, 2006 election dramatically changed the power structure in Congress. Following a tidal wave of voter discontent with President Bush and Republican leadership, the Democratic Party will control both the House of Representatives and the Senate for the first time in 12 years. The election results currently give the Democrats a 229 - 196 majority in the House with several races still officially undecided. These contests are in many cases separated by only a few thousand votes and recounts are possible. The Democrats have also won a narrow 51 - 49 majority in the Senate. With such tight governing majorities, many believe that the Democrats will face some of the same legislative challenges that Republicans have faced as they tried to pursue policy objectives.

The 109th Congress is expected to resume work on November 14, and it is unclear how long the outgoing Republican leadership will continue the lame duck session now that they will have to turn over control of the Congress in January.  The first order of business in November is to pass the remaining FY 2007 appropriations bills.  Thus far, only two of the 12 bills have been completed, meaning that it is entirely likely an omnibus measure will be crafted.  If lawmakers are unable to complete action on the spending bills, it remains possible that a continuing resolution will be passed to fund the government until early next year when Congress returns—thus giving the new Democrat leadership the ability to finalize FY2007 funding.  Additionally, with the resignation of Defense Secretary Donald Rumsfeld, the Senate Republicans are likely to remain in DC long enough to confirm his potential successor, former CIA Director Robert Gates. It is unlikely that the Senate’s Republican leadership will want to pass the opportunity to approve the new Defense Secretary to the Democrats in the new Congress.  For their part, several prominent Democrats including presumptive Majority Leader Harry Reid (D-NV) have stated that they have no interest in holding up the Gates’ nomination until the 110th Congress.

When the 110th Congress convenes in January 2007, the Democrat-controlled House of Representatives will change priorities and pursue a different agenda.  Soon-to-be House Speaker Nancy Pelosi stated that in the first 100 hours of the new Congress, she will push for action to implement all 9/11 Commission recommendations on national security, raise the minimum wage to $7.25, eliminate corporate subsidies for oil companies, allow the government to negotiate Medicare drug prices, impose new restrictions on lobbyists, cut interest rates on college loans, and support embryonic stem-cell research. Presumptive Majority Leader Harry Reid (D-NV) has stated that the Senate must “take things more slowly” in pursuing legislation since any legislation must have 60 votes to pass.  However, he said he would do his best to take up the issues outlined by Speaker-elect Pelosi as soon as possible.  Separately, Senator Reid has said he wants to convene a bipartisan summit on Iraq and change several ways in which the Senate is run. These include continuing Republican efforts to increase transparency in the Appropriations process and opening up House-Senate conference committee meetings to the public.

Oversight activities are expected to increase under the Democratic-controlled House and Senate.  For example, incoming Energy and Commerce Committee Chairman John Dingell (D-MI-15) has identified several large domestic sectors where he will pursue oversight hearings.  Specifically, drug prices, oil-company profits, and FDA-regulated industry activities could all face increased oversight.  Congressional oversight could also focus heavily on the Bush administration.  Some areas already identified include the FY 2008 budget proposal, the Administration’s record on workplace safety and protection of the environment.  Finally, House Democrats are expected to look back and examine “waste, fraud and abuse” across the federal government – particularly the rebuilding efforts in Iraq and the Hurricane Katrina-ravaged Gulf Coast. 

The Overall Results

 

Senate Prior to 2006 Election

 

Senate- 110th Congress

 

44 Democrats

 

49 Democrats

 

55 Republicans

 

49 Republicans

 

1 Independent

 

 
2 Independent (Caucus with Dems)

 

House Prior to 2006 Election

 

House- 110th Congress

 

201Democrats

 

231 Democrats

 

229 Republicans

 

196 Republicans

 

1 Independent

 

0 Independent 

 

4 Vacancies 

 8 Too Close to Call or Run Off

 [return to top]

State & Local Government Affairs

CRITICAL BALLOT MEASURES

Florida Amendment III – The State of Florida sought broader public support of constitutional amendments by increasing the threshold of passage from 50% plus 1 to 60%, thus preventing the Florida Constitution from being littered with costly and unnecessary amendments.  NAHB and the HBA of Florida were heavily involved in the Amendment III campaign, and ensured its passage. It gained approval by 57.9%.

Eminent Domain Louisiana and 11 other states voted on eminent domain measures that limit government’s powers to force the sale of private party for another private party or economic development.  The restrictions are a direct result of the United States Supreme Court’s Kelo v. New London decision in late June of 2005 where the Court upheld eminent domain for economic development as a “public use,” but also allowed individual states to place further restrictions on its exercise of the takings power. 

Louisiana

Passed; 55%

Arizona

Passed; 65.3%

California

Passed; 48%

Florida

Passed; 69%

Georgia

Passed; 82.4%

Idaho

Failed; 26%

Michigan

Passed; 84.3%

Nevada

Passed; 63%

New Hampshire

Passed; 86%

North Dakota

Passed; 67.7%

Oregon

Passed; 67.1%

South Carolina

Passed; 84.3%

 

Regulatory Takings – 5 states considered measures that would require governmental bodies to compensate property owners for “regulatory takings.”  Initiatives relating to regulatory takings, allowing citizens whose property value is decreased by government regulation to file a claim for government compensation for the reduced value of their property, passed in only two states.


Arizona 

Passed; 65.3%

California                      

Failed; 48%

Idaho                           

Failed; 26%

Washington                  

Failed; 42.4%

Oregon                         

Passed; 67.1%

 


THE OVERALL RESULTS (State Races)

 

Prior to election 2006, Republicans held the governorships and both chambers of the state legislatures in 12 states.  Democrats held complete political control in 8 states.

 

Governorships:

Pre Election

Democratic

Republican

22

28

Post Election

Democratic

Republican

28

22

 

Attorneys General:

Pre Election

Democratic

Republican

29

21

Post Election

Democratic

Republican

31

19

 

Legislatures:
Pre Election

Democratic

Republican

Split Control

Unicameral

19

20

10

1

Post Election

Democratic

Republican

Split Control

Unicameral

23

15

9

1

 

ISSUES MOBILIZATION RESULTS

Texas 28th Congressional District (primary)

Won by Rep. Henry Cuellar (D)

Tennessee’s 9th Congressional District

Won by Steve Cohen (D)

Florida’s 11th Congressional District

Won by Kathy Castor (D)

(NAHB Supported Les Miller)

Missouri Senate

Won by Claire McCaskill (D)

(NAHB Supported Sen. Jim Talent)

Colorado’s 7th Congressional District

Won by Earl Perlmutter (D)

(NAHB Supported Rick O’Donnell)

Florida’s 22nd Congressional District

Won by Joe Klein (D)

(NAHB Supported Rep. Clay Shaw)

Iowa’s 1st Congressional District

Won by Bruce Braley (D)

(NAHB Supported Mike Whalen)

California’s 11th Congressional District

Won by Jerry McNerny (D)

(NAHB Supported Rep. Richard Pombo)

Georgia’s 12th Congressional District

Rep. John Barrow (D) leads, race too close to call

(NAHB Supported Max Burns)

South Dakota’s At-Large Congressional District

Won by Rep. Stephanie Herseth (D)

Louisiana’s 3rd Congressional District

Won by Rep. Charlie Melancon (D)

[return to top]

New Members of Congress

**(BUILD-PAC supported candidates are indicated in bold.)

House

 

AZ-05                Incumbent defeated – Switch to Dem from GOP.  Democrat candidate Harry Mitchell defeated incumbent 6-term Republican Representative J.D. Hayworth (R) in an expected upset.

 

 

AZ-08                GOP Open Seat won by Democrat candidate Gabrielle Giffords, who defeated Republican candidate Randy Graf to fill the vacated seat of retiring Republican Representative Jim Kolbe.

 

 

CA-11             Incumbent defeated—Switch to Dem from GOP. Democrat candidate Jerry McNerney defeated 7-term Republican Congressman Richard Pombo in this closely watched race. Rep. Pombo has served during the past several years as Chairman of the House Resources Committee, and is the only Republican full committee chairman to be defeated in this election.

 

 

CA-22             GOP Open Seat won by Republican candidate Kevin McCarthy, who ran against Democrat candidate Sharon Beery for the seat vacated by retiring Representative Bill Thomas.

 

 

CO-05               GOP Open Seat won by Republican candidate Doug Lamborn (R) to fill the vacated seat of retiring Representative Joel Hefley (R).

 

 

CO-07               GOP Open Seat won by Democrat candidate Ed Perlmutter who defeated Republican candidate Rick O’Donnell to fill the vacated seat of Representative Bob Beauprez (R) who ran unsuccessfully for Governor of Colorado.

 

 

CT-02             Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Joe Courtney defeated Representative Rob Simmons (R).

 

 

CT-05             Incumbent Defeated – Switch to Dem from GOP. Democrat candidate Chris Murphy defeated Congresswoman Nancy Johnson (R).

 

 

FL-9                GOP Open Seat won by Republican candidate Gus Bilirakis, who defeated Democrat candidate Phyllis Busansky to win the vacated seat of his retiring father, Representative Mike Bilirakis (R).

 

 

FL-11              Open Dem seat won by Democrat candidate Kathy Castor who defeated Republican candidate Eddie Adams to fill the vacated seat of Representative Jim Davis (D), who ran for governor.

 

 

FL-13              Open GOP seat won by Republican candidate Vern Buchanan who defeated Democrat candidate Christine Jennings to fill the vacated seat of Representative Katherine Harris who ran for Senate.

 

 

FL-16              Open GOP seat won by Democrat candidate Tim Mahoney who defeated Republican candidate Joe Negron to fill the vacated seat of Representative Mark Foley (R) who resigned in September.

 

 

FL-22              Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Ron Klein defeated Representative Clay Shaw (R).

 

 

GA-04               Open Dem seat won by Democrat candidate Hank Johnson, who defeated Republican candidate Catherine Davis to fill the seat of Representative Cynthia McKinney (D), who lost to Hank Johnson in the Democratic primary.

 

 

GA-08             Race Too Close to Call – Incumbent Jim Marshall (D) is currently leading former Congressman Mac Collins (R) by 1,700 votes with 99 percent of the precincts reporting.  Under Georgia law, trailing candidates are granted an automatic recount if the final vote margin is one percent or less.

 

 

HI-02                 Open Dem seat won by Democrat candidate Mazie Hirono who defeated Bob Hogue to fill the vacated seat of Representative Ed Case (D) who ran unsuccessfully for Senate in Hawaii .

 

 

ID-01               Open GOP seat won by Republican candidate Bill Sali who defeated Democrat candidate Larry Grant to fill the seat vacated by Representative C.L. “Butch” Otter (R) who left office to run for governor.

 

 

IL-06               Open GOP seat won by Republican candidate Peter Roskam defeated Democrat candidate Tammy Duckworth to fill the seat vacated by retiring Congressman Henry Hyde (R).

 

 

IL-17               Open Dem seat won by Democratic candidate Phil Hare who defeated Republican candidate Andrea Zinga to fill the seat vacated by retiring Congressman Lane Evans (D).

 

 

IN-02               Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Joe Donnelly defeated incumbent Congressman Chris Chocola (R).

 

 

IN-08               Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Brad Ellsworth defeated incumbent Congressman John Hostettler (R).

 

 

IN-09               Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Baron Hill recaptured seat held by incumbent Representative Mike Sodrel (R). Hill held this seat in 108th Congress.

 

 

IA-01               Open GOP won by Democratic candidate Bruce Braley who defeated Republican candidate Mike Whalen to fill the seat vacated by Representative Jim Nussle (R), who left the seat and unsuccessfully run for governor.

 

 

IA-02               Incumbent defeated – Switch to Dem from GOP. Democrat candidate Dave Loebsack defeated 15-term Representative Jim Leach (R) in a surprise win.

 

 

KS-02             Incumbent defeated – Switch to Dem from GOP. Democrat candidate Nancy Boyda defeated 5-term Representative Jim Ryun (R) in a surprise defeat.

 

 

KY-03             Incumbent defeated – Switch to Dem from GOP. Democrat candidate John Yarmuth defeated Congresswoman Anne Northup (R) in a closely-watched race.

 

 

MD-03            Open Dem seat won by Democrat candidate John Sarbanes who won the vacated seat of Representative Ben Cardin (D) who successfully ran for Senate.

 

 

MI-07              Open GOP seat won by Republican candidate Tim Walberg to fill the seat of Representative Joe Schwarz (R) who Walberg defeated in the Republican primary.

 

 

MN-01                Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Tim Walz defeated incumbent Representative Gil Gutknect (R)

 

 

MN-05                Open Dem Seat won by Democrat candidate Keith Ellison to fill the vacated seat of retiring Representative Martin Sabo (D).

 

 

MN-006                Open GOP Seat won by Republican candidate Michelle Bachmann (R) to fill the vacated seat of Representative Mark Kennedy who unsuccessfully ran to fill the open Minnesota Senate seat.

 

 

NE-03             Open GOP Seat won by Republican candidate Adrian Smith who defeated Democrat candidate Scott Kleeb to fill the vacant seat formerly held by Representative Tom Osborne (R) who unsuccessfully ran for governor.

 

 

NH-01             Incumbent defeated – Switch to Dem from GOP.  Democratic candidate Carol Shea-Porter defeats Representative Jeb Bradley (R).

 

NH-02             Incumbent defeated – Switch to Dem from GOP. Democrat candidate Paul Hodes defeats Representative Charles Bass (R).

 

NJ-13              Open Dem Seat won by Democrat candidate Albio Sires who defeated Republican candidate John Guarini to win seat vacated by Representative Bob Menendez (D) who successfully ran for Senate.

 

 

NV-02               Open GOP Seat won by Republican candidate Dean Heller who won the vacated seat of Representative Jim Gibbons (R) who successfully ran for Governor of Nevada.

 

 

NY-11              Open Dem Seat won by Democrat candidate Yvette Clark who won the seat vacated by retiring Representative Major Owens (D).

 

 

NY-19              Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate John Hall defeated incumbent Representative Sue Kelly (R) in an surprise defeat.

 

 

NY-20              Incumbent Defeated – Switch to Dem from GOP. Democrat candidate Kirsten Gillibrand defeated 4-term incumbent Representative John Sweeney (R).

 

 

NY-24              Open GOP seat won by Democrat candidate Michael Arcuri who defeated Republican candidate Ray Meier to fill the seat vacated by retiring Representative Sherwood Boehlert (R).

 

 

NC-11            Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Heath Shuler defeated 8-term Representative Charles Taylor (R).

 

 

OH-04             Open GOP seat won by Republican candidate Jim Jordan to fill the seat vacated by retiring Representative Michael G. Oxley (R).

 

 

OH-06             Open Dem seat won by Democrat candidate Charlie Wilson to fill the seat vacated by Representative Ted Strickland (D) who left office to successfully run for governor.

 

 

OH-13             Open Dem Seat won by Democrat candidate Betty Sutton won the seat vacated by Representative Sherrod Brown (D) who left office to successfully run for Senate.

 

 

OH-18             Open GOP seat won by Democrat candidate Zack Space defeated Republican candidate Joy Padgett to fill the vacated seat of retiring Representative Bob Ney (R).

 

 

OK-05              Open GOP seat won by Democrat candidate Mary Fallin who won the seat vacated by Representative Ernest Istook (R) who ran unsuccessfully for governor.

 

 

PA-04              Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Jason Altmire defeated incumbent Representative Melissa Hart (R) in a surprise victory.

 

 

PA-07              Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Joe Sestak defeated incumbent Representative Curt Weldon (R) in a closely watched race.

 

 

PA-08              Incumbent Defeated – Switch to Dem from GOP.  Democrat candidate Patrick Murphy defeated incumbent Representative Mike Fitzpatrick (R) in a surprise victory.

 

 

PA-10              Incumbent Defeated – Switch to Dem from GOP – Democrat candidate Chris Carney defeated incumbent Representative Don Sherwood (R) in a closely watched race.

 

 

TN-01             Open GOP Seat won by Republican candidate David Davis (R) who defeated Democrat candidate Rick Trent to fill the vacant seat of retiring Representative William Jenkins (R).

 

 

TN-09             Open Dem Seat won by Democrat candidate Steve Cohen (D) who defeated Independent candidate Jack Ford, relative of Harold Ford, Jr.

 

 

TX-22              Open GOP Seat won by Democrat candidate and former Representative Nick Lampson to fill the seat vacated by retiring Representative Tom Delay (R).

 

 

VT-AL             Open Independent Seat won by Democrat candidate Peter Welch who defeated Republican candidate Martha Rainville to fill the seat vacated by Representative Bernie Sanders who successfully ran for Senate.

 

 

WI-08               Open GOP Seat won by Democrat candidate Steve Kagen who defeated Republican candidate John Gard to fill the vacated seat of Representative Mark Green (R) who unsuccessfully ran for governor.

 

 

Undecided

GA-12            Race Too Close to Call – Incumbent Congressman John Barrow (D) is leading former Representative Max Burns (R) by 859 votes with 99 percent of the precincts reporting.  Under Georgia law, trailing candidates are granted an automatic recount if the final vote margin is one percent or less.

 

 

LA-02            Run Off – Incumbent Representative William Jefferson (D) received 30 percent of the vote, while Karen Carter (D) ran second with 22 percent against a field of 13 candidates.  Under Louisiana law, if no candidate receives at least 50 percent of the vote, the top two candidates will compete in a run-off. The run-off is December 2.

 

 

NC-08             Race Too Close to Call – Incumbent Representative Robin Hayes (R) is leading Larry Kissell (D) by 460 votes.

 

 

NM-1               Race Too Close to Call – Incumbent Representative Heather Wilson (R) leads her opponent Democrat candidate Patricia Madrid (D) by 1,150 votes out of 201,000 cast with 99 percent of precincts reporting.

 

 

TX-23              Run Off – Incumbent Representative Henry Bonilla (R) did not gain the forty-eight percent of the      vote necessary to win this race outright and now faces a runoff against former-Representative Ciro D. Rodriguez (D).

 

 

 

Senate

MD                  Dem Open Seat won by Democrat candidate and Representative Ben Cardin (D) who ran against Republican candidate and LieutenantGovernor Michael Steele (R) to fill the seat vacated by retiring Senator Paul Sarbanes (D).

 

 

MN                   Dem Open Seat won by Democrat candidate Amy Klobuchar who defeated Republican candidate and Representative Mark Kennedy (R) to fill the vacated seat of retiring Senator Mark Dayton (D).

 

 

MO                  Incumbent Defeated – Switch to Dem from GOP – Democrat candidate Claire McCaskill defeated first-term Senator Jim Talent (R) in a hard-fought race that went down to the wire.

 

 

MT                    Incumbent Defeated – Switch to Dem from GOP – Democrat candidate John Tester defeated incumbent Senator Conrad Burns (R) in a closely watched race.

 

 

OH                  Incumbent Defeated – Switch to Dem from GOP – Democrat candidate and Representative Sherrod Brown (D) defeated incumbent Senator Mike                     DeWine (R).

 

 

PA                    Incumbent Defeated – Switch to Dem from GOP – Democrat candidate Bob Casey defeated incumbent Senator Rick Santorum (R).

 

 

RI                     Incumbent Defeated – Switch to Dem from GOP –  Democrat candidate Sheldon Whitehouse defeats Senator Lincoln Chafee (R).

 

 

TN                   Open GOP Seat won by Republican candidate Bob Corker who defeated Democrat candidate Congressman Harold Ford, Jr. (D) to fill the seat vacated by retiring Senate Majority Leader Bill Frist (R).

 

 

VT                   Independent Open Seat won by Independent candidate Representative Bernie Sanders who defeated Republican candidate Richard Tarrant to fill the seat vacated by retiring Senator Jim Jeffords (I).

 

 

VA                   Incumbent Defeated – Switch to Dem from GOP – Democrat candidate Jim Webb defeats Republican candidate Senator George Allen (R) in a race that initially was considered a safe incumbent seat.

 

 

 

 [return to top]

BUILD-PAC Success Rate

BUILD-PAC contributed to 30 Senate races, winning 20 of them for a 67% success rate.  In the House of Representatves, BUILD-PAC-supported candidates won 321 of 348 races for a winning percentage of 92%.  BUILD-PAC is also involved in twelve races that are still too close to call. Overall, BUILD-PAC won 341 of 378 decisive races, for a 90% success rate.

Click here for a list of the candidates who were supported by BUILD-PAC during the 2006 Election cycle.

[return to top]

House and Senate Leadership

 

House Leadership – Democratic Majority

Speaker

Nancy Pelosi (D-CA)

Majority Leader

Steny Hoyer (D-MD)

Majority Whip

James Clyburn (D-SC)

Caucus Chair

Rahm Emanuel (D-IL)

Caucus Vice Chairman

John Larson (D-CT)

Democratic Congressional Committee Chairman

This position will be appointed by the Speaker.

 

House Leadership – Republican Minority

Minority Leader

John Boehner (R-OH)

 Minority Whip

Roy Blunt (R-MO)

Conference Chairman

Adam Putnam (R-FL-12)

Conference Vice Chairman

Kay Granger (R-TX)

Conference Secretary

John Carter (R-TX)

Policy Committee Chairman

Thaddeus McCotter (R-MI)

National Republican Campaign Committee Chairman

Tom Cole (R-OK)

 

 

 

Senate Leadership – Democratic Majority

Majority Leader/Conference Chairman

Harry Reid (D-NV)

Assistant Majority Leader/Majority Whip

Richard Durbin (D-IL)

Policy Committee Chairman

Byron Dorgan (D-ND)

Democratic Conference Vice Chairman

Charles Schumer (D-NY)

Conference Secretary

Patty Murray (D-WA)

Steering and Outreach Chairman

Debbie Stabenow (D-MI)

Democratic Senate Campaign Committee (DSCC)

Charles Schumer (D-NY)

 

Senate Leadership – Republican Minority

Senate President

Vice President Dick Cheney

Minority Leader

Mitch McConnell (R-KY)

Minority Whip

Trent Lott (R-MS)

Policy Committee Chairman

Kay Bailey Hutchison (R-TX)

Conference Chairman

Jon Kyl (R-AZ)

Conference Secretary

John Cornyn (R-TX)

National Republican Senatorial Committee (NRSC)

John Ensign (R-NV)

 [return to top]

Legislative and Committee Impact

Appropriations Committees

The appropriations committees are important to funding of NAHB’s pro-housing agenda and securing appropriations for NAHB’s Research Center.  Members of the Appropriations Committees are in very powerful positions; controlling the federal government’s purse strings.

House

Rep. David Obey (D-WI) will take the helm as Chairman of the full Appropriations Committee, with Rep. Jerry Lewis moving to Ranking Member.  Rep. John Olver (D-MA) will lead the Transportation, Treasury, Housing and Urban Development Subcommittee (T-THUD) and, while the Chairman’s gavel for the  Labor/HHS/Education Appropriations Subcommittee technically passes to Rep. Obey, he is not expected to assume this role.  Instead, it is expected that either Rep. Nita Lowey (D-NY), or Rep. Rosa DeLauro (D-CT) will vie for the chair.

On the Republican side, Rep. Ralph Regula (R-OH), is likely to become Ranking Member of the Labor/HHS/Education Appropriations Subcommittee—although it is rumored that he may instead become Ranking Member of the Agriculture Appropriations Subcommittee, and Rep. Joe Knollenberg (R-MI) will be the Ranking Member on T-THUD.

With Democrat control of the House and Senate Appropriations Committees, we can expect to see a renewed commitment to spending on domestic programs, and several NAHB priority programs may receive increased funding, including housing programs like CDBG, Section 8, and HOME. Additionally, programs in the jurisdiction of the Department of Labor, such as Job Corps, are likely to see increases. Democrats can also be expected to look at increases in OSHA regulatory and enforcement line-items.  

The House Appropriations Committee will have a several highly-coveted slots available in the 110th Congress.  With the departures of Rep. Jim Kolbe (AZ), Ernest Istook (OK), the re-election loss of Rep. Don Sherwood (R-PA), Rep. John Sweeney (R-NY), and the surprise re-election losses of Rep. Anne Northup (R-KY), and Interior Appropriations Subcommittee Chair, Rep. Charlie Taylor (R-NC), there will be a scramble among lawmakers to be appointed to these A-Committee positions.  The ultimate decision on who gets the assignments will be made by the sometime in November or December by the Democrat and Republican leadership once the new committee ratios are factored in.

Senate

Senator Robert Byrd (D-WV), fresh off another Senate re-election victory, assumes the Chairmanship of the full Senate Appropriations Committee, with Senator Thad Cochran (R-MS) moving to Ranking Member.  It is widely expected that Senator Patty Murray (D-WA) will assume the gavel on the T-THUD Subcommittee, and that Senator Christopher “Kit” Bond (R-MO) will move to Ranking Member.    Senator Tom Harkin (D-IA) is expected at this point to head the Labor/HHS/Education Appropriations subcommittee, with Senator Arlen Specter (R-PA) moving to Ranking Member.

Much like the House appropriators, we expect that the Senate’s Democrat appropriators will look to refocus federal spending priorities on many key domestic programs, and we hope that this refocusing will help find funding level increases for many of the housing and labor programs NAHB monitors.  However, with the federal budgetary situation remaining essentially the same, the Democrats’ new priorities may not translate into extremely significant changes in funding—even though many programs like HOPE VI may find themselves in ‘safer’ positions in the budget.

The Senate Appropriations Committee will have two vacancies.  With the re-election losses of Senator Conrad Burns (R-MT), and Senator Mike DeWine (R-OH), these two highly-coveted seats will be open and most likely will go to Democrats.

 

House Education and the Workforce Committee / Senate Health, Education, Labor and Pensions Committee 

The House Education and the Workforce Committee and the Senate Health, Education, Labor and Pensions Committee have jurisdiction over measures governing labor and education, including, but not limited, to: workforce incentive programs, vocational rehabilitation/career education, workforce wages and hours, and labor standards, statistics, and Occupational Safety and Health.   Organized labor has traditionally had a significant influence over the committee Democrats, while the Republicans have traditionally been opponents of organized labor.  Consequently, votes in this committee are usually along party lines.

House

Chairman George Miller (D-CA) will take over the Committee as Democrats re-focus Committee priorities on several items in the 110th Congress.  One of the first topics likely to be considered is an increase in the federal minimum wage, followed by several education-related bills: working to reauthorize the Higher Education Act, looking at the status of the Federal Direct Student Loan program, expanding Pell grants, and working with the House Ways & Means Committee to investigate the costs/benefits of allowing taxpayers to deduct the cost of college tuition. It can also be expected that the Committee will hold oversight hearings on the status and quality of OSHA’s workplace enforcement program, and that they may look into the status of several delayed OSHA rulemakings.   Additionally, with the likely failure of the Congress to complete the reauthorization of the Workforce Investment Act (WIA)—a priority for HBI and many local HBAs who engage in workforce training—WIA will be an early priority for Ed & Workforce.

Subcommittees of importance include the Subcommittee on Workforce Protections, which is likely to be chaired by Rep. Major Owens (D-NY) in the 110th.  Rep. Owens has historically be critical of the construction industry’s efforts and record on OSHA safety and health issues, and is expected to continue his critique as chairman.  The Workforce Protections Subcommittee has oversight over all OSHA legislation.  Additionally, the Subcommittee on Employer-Employee Relations will be chaired by Rep. Rob Andrews (D-NJ).  Chairman Andrews has not traditionally been a supporter of Association Health Plans or Small Business Health Plans (AHPs/SBHPs), and we can assume at this point that the subcommittee, and the full committee, will not consider this legislation in the 110th Congress.

On the Republican side, Rep. Howard “Buck” McKeon (R-CA) will become the Ranking Member of the full committee.  Rep. Charlie Norwood will be the Ranking Member of the Subcommittee on Workforce Protections, and Representative Sam Johnson (R-TX) will be the Ranking Member of the Subcommittee on Employer-Employee Relations. 

Ed & Workforce will need to appoint a few new members in the 110th.  The Democrats will have several slots to fill, and there will be several vacancies on the committee. Rep. John Barrow’s (D-GA) race is still in question, as a recount ensues; Rep. Mark Souder (R-IN) suffered a re-election loss; and Rep. Tom Osborne (R-NE) left the Congress to run for governor.  It is likely that the Republicans will lose those two seats on the committee entirely, as the committee ratios are re-shuffled.

Senate

Because organized labor has a significant influence over the committee's Democrats, and Republicans have traditionally been opponents of organized labor, votes dealing with employment issues are usually very polarized, with a few exceptions.

Senator Edward “Ted” Kennedy” (D-MA) will become Chairman of the Health Education, Labor and Pensions (HELP) Committee, and Senator Mike Enzi (R-WY) will become the Ranking Member.  Senator Patty Murray is scheduled to become Chair of the Employment and Workplace Safety Subcommittee, but since she will likely take over as head of the Transportation, Treasury, Housing and Urban Development (T-THUD) Appropriations Subcommittee, it is unclear whether she will want this additional duty.  Should she choose to forego leadership of this subcommittee, the next right of refusal would go to Senator Chris Dodd (D-CT).  Senator Johnny Isakson (R-GA) will continue as Ranking Member of the subcommittee, which handles most of NAHB’s labor-related, and OSHA-related priorities.

A confirmed, and highly notable, change in the Committee’s membership for the 110th comes with the departure of Senate Majority Leader Bill Frist (R-TN).  With his departure from the Senate, and the re-election loss of Senator Mike DeWine in Ohio, two slots will be open on the Committee.  Democrats will see no turnover on their side of the dais for the 110th, and may in fact add another slot on the committee now that they have the Majority position and the committee ratios are being re-calculated. 

 

House Energy and Commerce Committee/ Senate Energy and Natural Resources Committee

House

John Dingell (D-MI) will take over the chairmanship in the 110th Congress, returning to the post he once held before Republicans took control of the House.  Rep. Rick Boucher (D-VA) will likely be the new chair of the Energy and Air Quality Subcommittee, a subcommittee of special interest to NAHB.  Rep. Dingell’s energy agenda includes reducing America’s dependence on fossil fuels and foreign oil, expanding use of alternative energy technologies, and increasing the use of bio-based fuels (hybrid vehicles, etc.).  Climate change legislation will likely also be a key issue this session as a follow up to state initiatives, like California, that have set caps greenhouse gas emissions.   Extending energy efficiency tax credits for home building that passed as part of the Energy Policy Act of 2005 now fall solely under the jurisdiction of the House Ways and Means Committee moving forward.

Taking over the chairmanship of the Environment and Hazardous Materials Subcommittee, another subcommittee of interest to NAHB, will likely be Rep. Hilda Solis (D-CA).  This subcommittee has jurisdiction over brownfields, and we would need their support to move NAHB’s petroleum brownfields provisions.  Brownfields liability legislation is up for reauthorization in 2007, so it may return as a priority in the 110th Congress.  Unfortunately, NAHB has not found a lot of support among the democrats on the committee for moving narrow petroleum liability protection for innocent developers.  In fact, incoming-Chairman Dingell has been adamantly opposed to our efforts.  As a result, it is very unlikely that Rep. Solis would support our efforts. 

In addition, this subcommittee has jurisdiction over the mold issue.  Rep. John Conyers (D-MI), who authored mold legislation that would set exposure limits and federal building standards will take over as chairman of the Judiciary Committee.  This Committee also has limited jurisdiction over mold.  It is more likely now that the Judiciary and Commerce Committees will cooperate and begin to focus on the mold issue and indoor air-quality.  This could be a significant concern for NAHB. 

Senate

Senator Jeff Bingaman (D-NM) regains control as the chairman of the Committee in the 110th Congress after he relinquished it to fellow New Mexico Senator Pete Domenici (R-NM) in 2002.  Sen. Bingaman has been a long supporter of caps on greenhouse gas emissions and measures to reduce dependence on foreign oil and fossil fuels.  Last session, Sen. Bingaman supported green building legislation that incorporated a mandate for Leadership in Energy and Environmental Design for Homes (LEED), a position that counters NAHB’s support for voluntary and market-driven standards for green building.  However, Chairman Bingaman is a supporter of tax credits for energy efficiency in home building and also sits on the Senate Finance Committee, which has jurisdiction over legislation to extend the provisions for tax credits for energy efficiency in new homes that passed as part of the Energy Policy Act of 2005.  There will be several new Senators on this Committee in the 110th Congress due to reelection losses by Senators Conrad Burns (R-MT) and George Allen (R-VA).   


House Financial Services Committee / Senate Banking Committee

The House Financial Services Committee and Senate Banking Committee are the authorizing committees with jurisdiction over federal housing programs, mortgage finance and financial services providers, including the Government Sponsored Enterprises (GSEs).

House

The majority party switch in the House will bring a new Chairman to the House Financial Services Committee in the 110th Congress.  The gavel will switch from retiring 109th House Financial Services Chairman Michael Oxley (R-OH) to the committee’s former Ranking Member Barney Frank (D-MA).

While Rep. Frank worked closely with Chairman Oxley on many housing-related bills in the past, Representative Frank has indicated that the chamber will have a decidedly different agenda in the 110th Congress.  Rep. Frank’s stated top priority for the committee will be on the issue of affordable housing.  He has already talked to Rep. Rangel (D-NY), the new Chairman of the House tax writing committee, about beefing up tax credits for low-income housing.  Incoming Chairman Frank has also stated his support for getting the federal government back into the business of building subsidized housing.  Should GSE reform legislation stall in the 109th Congress lame-duck session, Representative Frank has indicated that he would move legislation that looks very much like what the House passed in the 109th Congress.  Thus, a Democrat-written bill in the 110th Congress wouldn’t cap the amount of mortgage-backed securities each GSE could hold in their portfolio’s and would include a similar affordable housing fund to the one passed by the House in the 109th Congress.  Other stated priorities for the Financial Services Committee by the incoming Chairman include:  legislation to crack down on predatory lending, regulate hedge funds, and legislation to give stockholders a vote about executive compensation.

Going into this election, we knew that there would be at least six vacancies on the House Financial Services Committee (four Republicans (Michael Oxley (OH), Bob Ney (OH), Mark Kennedy (MN) and Katherine Harris (FL)), one Democrat (Harold Ford (TN)), and one independent (Bernard Sanders (VT)).  The 2006 election added to this number with the defeat of House Financial Services members Sue Kelly (R-NY), Jim Leach (R-IA), Jim Ryun (R-KS) and Mike Fitzpatrick (R-PA).  The outcome of the race of one current Republican member of the Financial Services Committee - Jim Gerlach (R-PA) - is still too close to call.  As with all new Congresses, the 110th Congress will begin with much maneuvering as newly elected members fight for key committees, and current members change committees or fight for key subcommittee chairs.  The Democrat takeover will also increase the total number of seats for Democrats on the Financial Services Committee, while Republicans will undoubtedly lose seats.

Senate

The majority party change in the Senate will bring a new Chairman to the Senate Banking, Housing and Urban Affairs Committee in the 110th Congress.  The gavel will switch from current Republican Chairman Richard Shelby (R-AL) to Senator Chris Dodd (D-CT) who, with the retirement of former committee Ranking Member Paul Sarbanes (D-MD), is the panel’s senior Democrat.

Throughout the past several years the issue that has dominated the Senate Banking Committee’s agenda has been the regulation of the housing Government Sponsored Enterprises (GSEs).  Senator Dodd has stated publicly that he likes the bill the House-passed in the 109th Congress and will try to pass a similar bill next year.  Thus, a Dodd-written bill in the 110th Congress wouldn’t cap the amount of mortgage-backed securities each GSE could hold in their portfolio’s and would include a significant affordable housing fund component – a significant departure from the bill passed by the Senate Banking Committee in 2005.  While other legislative priorities are less defined for Chairman Dodd, we can expect the incoming Chairman to take a more active approach to housing legislation than his predecessor Chairman Shelby did in the 109th Congress.  Under Chairman Shelby’s leadership the committee seldom addressed housing-specific legislation with much public debate, choosing rather to negotiate privately with the House on legislation passed by that chamber.

Going into this election, we knew that there would be at least one vacancy on the Senate Banking Committee (the retirement of Senator Paul Sarbanes (D-MD), however the defeat of Rick Santorum (R-PA) on Tuesday will add to this list.  As with all new Congresses, the 110th Congress will begin with much maneuvering as newly elected members fight for key committees, and current members change committees or fight for key subcommittee chairs.  The Democrat takeover will also impact the number of total seats on the committee, which will now tilt to the Democrat party.

 

Judiciary Committees

The Judiciary Committees deals with some of the most heart-felt issues in Congress and critical constitutional issues.  For example, the House and Senate Judiciary Committees have jurisdiction over private property rights, tort reform, and immigration issues.  Further, all federal judicial appointments must go through the Senate Judiciary Committee for confirmation, which can be very politically contentious.  Generally, controversial issues have been decided along partisan lines.

House

Rep. John Conyers (D-MI), who has long served as the Ranking Member of the Committee, will takeover next year as Chairman.  He is a staunch opponent of NAHB’s private property rights legislation, effectively ending any chance of revisiting the issue in the House.  Further, in the current 109th Congress, he authored mold legislation that would set exposure limits and federal building standards.  We fully expect him to reintroduce this legislation in the 110th Congress, but as chairman, he will now be able to advance that bill.  This will certainly be a significant concern for NAHB.  Further efforts on legal reform are unlikely, however, NAHB may be able to partner with Conyers to examine the Fair Housing Act can be better used to promote the construction of affordable and entry-level housing.  It is also likely that NAHB will be able to work with Chairman Conyers on more comprehensive immigration reform legislation similar to the bill passed by the Senate in the 109th Congress.

In addition, the Committee make-up will see some changes.  Currently, there are 23 Republicans and 17 Democrats.  These numbers will now swap, meaning several new Democrats will join the committee while a number of Republicans will lose their slot.  Representative John Hostettler (R-IN) failed to win reelection and will not be returning next year and Representatives Henry Hyde (R-IL) and Mark Green (R-WI) both did not run for reelection.  Finally, Representative Spencer Bachus (R-AL) could leave the committee to take over as ranking member of the Financial Services Committee.  As many as eight new democrats could join the Committee, while no democrats are expected to leave.

Senate

With the Democrats taking control of the Senate, Senator Patrick Leahy (D-VT) will take over the reins of the committee as chairman.  Senator Leahy is likely to focus on consumer issues—prescription drug pricing, gas pricing—as well as major national issues such as terrorism surveillance and interrogation.  Further efforts to reform our legal system are unlikely, although he may attempt to revive an effort to establish a multi-billion-dollar trust fund to compensate victims of asbestos exposure. 

In the short-term, it remains unclear whether the Committee will seek to take up property rights legislation during the lame duck session.  Two property rights bills have been passed by the House, one dealing with the Kelo eminent domain case, the second dealing with access to federal courts, which is supported by NAHB.  If the committee is unable to move forward on access to federal courts legislation in the lame duck session, the issue is all but dead with Senator Leahy as Chairman.  In the past, he has been a staunch opponent to NAHB’s private property rights/judicial reform legislation and will attempt to block movement of such legislation.   However, NAHB may find in Senator Leahy an ally to help examine how the Fair Housing Act can be better used to promote the construction of affordable and entry-level housing.

Additionally, Senator Leahy is likely to work closely with fellow Judiciary Committee member Senator Ted Kennedy to push comprehensive immigration reform legislation again in the 110th Congress.  That effort is likely to be met with strong support from Democrat leadership in the Senate.

There will be a significant change in the Committee’s membership.  Currently, Republicans have ten members on the Committee, while the Democrats have eight.  This will likely reverse itself, with the Democrats adding two new members to the committee and the Republicans loosing two.  With the defeat of Senator Mike DeWine (R-OH), one additional Republican will probably have to leave the Committee.  Current Chairman Arlen Specter (R-PA) should remain as the ranking member of the Committee.

 

House Resources Committee   

The House Resources Committee has jurisdiction over the Endangered Species Act (ESA), the Magnunson-Stevens Fisheries Act (MSFA), domestic timber supply issues, federal land designations, and water supply issues.  Rep. Nick Rahall (D-WV) will take over the chair of the Committee from Rep. Richard Pombo (R-CA), who did not win reelection.  In past Congresses, Rep. Rahall has opposed NAHB-supported Endangered Species Act (ESA) reform legislation championed by former Chairman Pombo. Representative Rahall supported NAHB’s private property rights legislation in the 109th Congress and we expect to be able to work with him on issues where property rights are affected.

Representative Tom Udall (D-NM) will most likely succeed Rep. Greg Walden (R-OR) as chairman of the Forests and Forest Heath Subcommittee.  NAHB may find itself at odds with Chairman Udall on NAHB’s policies on forest and timber issues.  We may see the subcommittee attempt to codify the “Roadless Rule.”  Rep. Frank Pallone (D-NJ) will replace Wayne Gilchrest (R-MD) as chairman of the Fisheries Conservation, Wildlife and Oceans Subcommittee. 

We can expect this committee to generally vote along partisan lines, with members who support property rights, environmental reforms and economic growth squaring off against those who support environmental protections and endangered species protections.  There are a few moderate Democrats on the committee who many times support NAHB’s environmental policy.  NAHB will continue to work closely with these members.

 

House Transportation and Infrastructure Committee

This committee has jurisdiction over all modes of transportation, water quality and infrastructure and brownfields. 

Rep. Jim Oberstar (D-MN) will replace Rep. Don Young (R-AK) as chairman of this important House committee.  While the focus for this committee has always been the reauthorization of TEA-21, with that piece of legislation not due for another few years, we may see the committee focus on smart growth, air quality and water quality issues.  Although this committee does not enjoy the same environmental jurisdiction as the Senate EPW Committee, the House Transportation Committee, because of its large and diverse membership, will be the big player in these issues.  Further, NAHB’s storm water legislation is under the jurisdiction of this committee.  During the 109th Congress, NAHB was unable to win the support of Chairman Oberstar on the storm water legislation, which dims the prospects of movement in the 110th Congress. 

Rep. Jimmy Duncan (R-TN), the champion of NAHB’s storm water legislation, is being replaced as chairman of the Water Resources Subcommittee by Rep. Eddie Bernice Johnson (D-TX).  Her subcommittee will have jurisdiction over wetlands and water infrastructure, including storm water.  NAHB was unable to secure Rep. Johnson as a cosponsor of the storm water bill.

 

Senate Environment and Public Works Committee

Senator Barbara Boxer (D-CA) will chair the powerful Environment and Public Works Committee, which has jurisdiction over the Clean Water Act, the Endangered Species Act (ESA), the Clean Air Act and transportation.  From a NAHB policy perspective in the 110th Congress, this committee will legislate on wetlands jurisdiction, storm water legislation, ESA reform and smart growth. 

Under the leadership of former Chairman Jim Inhofe (R-OK), this committee had a difficult time passing major environmental legislation, such as ESA reform and Clean Air Act amendments, because Sen. Lincoln Chafee (R-RI) routinely sided with Democrats to block Chairman Inhofe's legislation.  With the defeat of Sen.Chafee, the Republican side of the dais will be more united, but as the minority party, they will face an uphill battle when trying to stop any Democrat initiatives.

NAHB expects the committee to conduct extensive oversight of the ESA, rather than attempt any reforms to program.  On storm water, NAHB has worked hard to craft a bipartisan bill with EPW member Sen. Tom Carper (D-DE).  We are hopeful that negotiations with Sen. Carper's staff will be concluded before the end of the 109th’s lame duck session, and that he, along with Sen. Inhofe, will be a sponsor of NAHB's storm water legislation in the Senate.  Having Sen.Carper on board is an important condition for moving a storm water bill in the future.  On the wetlands issue, we could see an effort by the EPW Committee to pass amendments to the Clean Water Act.  Based on some of the current legislation, NAHB would be in a completely defensive posture on this issue and would have to spend considerable time defeating legislation that will be harmful to the industry.  Finally, NAHB expects to see efforts to pass federal smart growth legislation, such as the Community Character Act. 

One last wrinkle to the shift of power: Sen. Inhofe may not become the Ranking Member of the EPW Committee in the 110th Congress.  Senator John Warner (R-VA) may exercise his prerogative as a senator on the committee with more seniority to challenge Inhofe for the Ranking Member post.  Should Warner take the lead Republican spot on the committee, it may make it more difficult for NAHB to move some of its priorities onto EPW’s radar screen.
 

Tax Writing Committees

The Senate Finance Committee and the House Ways and Means Committee has jurisdiction over tax issues, health care, social security, trade and revenue measures generally. 

Senate

With turnover of control of the Senate to the Democrats, the Chairman of the Senate Finance Committee for the 110th Congress is Senator Max Baucus (D-MT).  Former Chairman Charles Grassley (R-IA) becomes the ranking member.  Numbers on the Committee will also change as current Senate Majority Leader Bill Frist (R-TN) and Senator Jim Jeffords (I-VT) are retiring and Senator Rick Santorum (R-PA) did not win reelection.  Because of new committee ratios, Democrats will be able to add members to this panel.

Both Senators Baucus and Grassley have established records of support for housing and housing incentives in the tax code.  They share many common concerns on tax issues and have a good rapport on the Committee.  One specific example is tax reform where both the Chairman and Ranking Member support some type of reform of the code, albeit for slightly different reasons.  They share concern over the growing impact of the Alternative Minimum Tax (AMT), but Senator Grassley also has serious concerns with potential abuses in the tax-exempt sector while Senator Baucus is focused on closing the $350 billion “tax gap.”  These and other long-term fiscal issues could drive some type of tax reform in the 110th Congress.  Also, both would likely seek more timely passage or event permanence of tax breaks that expire in 2007 (extenders).  These extenders faced a difficult path this year and have yet to be passed by the 109th Congress, but Senators Baucus and Grassley will likely push strongly for that in the lame-duck session.

On other tax issues, Senator Baucus is not likely to support extending all of the President’s 2001 and 2003 tax cuts past 2010 or aggressively pursuing reforming the estate tax.  While he has made statements in support of estate tax reform, this is not a top priority for him.  Partnering with Representative Charlie Rangel (D-NY), the incoming Chairman of the Ways and Means Committee, Chairman Baucus could be a strong ally on NAHB’s affordable housing initiatives on the Low Income Housing Tax Credit (LIHTC), Home Ownership Tax Credit (HOTC) and exit tax relief.  Both the Chairman and Ranking Member have supported NAHB on establishing a Home Ownership Tax Credit (HOTC) in the tax code and we will be working with them on this issue again in the 110th Congress.

House

The House Ways & Means Committee will see significant change in the 110th Congress as the new Chairman of the Committee is Representative Charles Rangel (D-NY).  NAHB’s relationship with Rep. Rangel will likely be a complicated one.  On the one hand, he will assuredly be a strong ally and partner on affordable housing issues, especially modernizing the Low Income Housing Tax Credit (LIHTC), establishing a Home Ownership Tax Credit (HOTC) and providing exit tax relief.  However, he does not support repeal of the estate tax or renewing all of the 2001 and 2003 tax cuts.  In the area of tax reform, Rep. Rangel has called for a “simpler, fairer and more responsible” tax code; leaving essentially unclear what specifically that would entail.  Time will tell.    

On the Republican side of the Committee, it is still unclear who will serve as the ranking member.  Following the announced retirement of current Chairman Bill Thomas   (R-CA) in early 2006, Representatives Jim McCrery (R-LA), Clay Shaw (R-FL) and Nancy Johnson (R-CT) all campaigned for the Chairmanship, assuming continued Republican control in the 110th Congress.  However, Reps. Shaw and Johnson both lost their reelection bids and it remains to be seen if Rep. McCrery wants the job of Ranking Member under a Democrat-controlled Committee.  It is also still unclear as to what other candidates for this position will step forward.  For his part, Rep. McCrery is strong on NAHB issues and has expressed support in the past for housing incentives in the tax code.

Membership on the committee will change significantly from the 109th Congress.  First, several Republican members did not win reelection, including Representatives Clay Shaw (FL-22), Melissa Hart (PA-4), Nancy Johnson (CT-5), Chris Chocola (IN-2) and J.D. Hayworth (AZ-5).  Additionally, Representatives Mark Foley (FL-16) and Bob Beauprez (CO-7) did not seek reelection.  On the Democratic side of the Committee Representative Ben Cardin (MD-3) was elected to the Senate.  Finally, Committee ratios will change because of the Democrat takeover of the House, giving Democrats more seats on the Committee

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