Day-by-Day Activities Report

Arriving in Washington, D.C.

TRANSPORTATION SECRETARY RAY LAHOOD ADDRESS: 'IN UNITY THERE IS STRENGTH'
It was an early start this morning for Cap-to-Cap delegates as they gathered for the Cap-to-Cap Welcome Breakfast in the Grand Ballroom of the Mayflower Hotel. In preparation for approximately 220 appointments over the next three days, delegates gathered at team tables to discuss plans for their meetings. Thanks to Honorary Host, Congressman Dan Lungren, the audience was also treated to informative comments from the U.S. Secretary of Transportation, Ray LaHood, left, who wowed the audience with an engaging question and answer session.

Congressman Lungren, right, welcomed delegates and focused his introduction of LaHood on the secretary’s steady, bipartisan nature that allows leaders from both sides of the aisle to work towards the best choices for Americans. As a former Republican Congressman from Illinois, he holds a position in a Democratic president’s cabinet, an acknowledgement from both the Secretary and Rep. Lungren that this position has traditionally been a non-partisan position.

Secretary LaHood opened with the sentiment that “in unity there is strength” and that our delegation’s presence in D.C. is “the most important thing (we) can be doing.” LaHood emphasized that the idea of bipartisanship is not a “political slogan” for President Obama, and that the transportation agency works across all political philosophies, setting aside politics and personal agendas to get things done and to put people back to work in a challenging economy.

LaHood committed to being a “full” partner with the Sacramento region in our efforts to secure funding for projects in transportation. At one of the worst economic times in the history of the U.S., the Department of Transportation (DOT) wants to get people back to work quickly including building roads and bridges, jumpstarting High Speed Rail across the country, improving transit facilities and buses, and supporting airports with projects like lengthened runways. This is also an opportunity to enhance water ports, like the Port of West Sacramento, that can be an “economic engine” for states.

Forty-eight billion dollars will be spent through the DOT in the economic recovery plan, creating an estimated 150,000 jobs. LaHood noted that California is “way ahead of the curve” in preparation to receive these funds through our support of High Speed Rail and projects that incorporate improved transportation with housing and energy, keeping people from long automobile drives. The goal of the DOT and President Obama is to create “live-able communities” like Portland, OR and the Sacramento region’s award winning Blueprint Plan.
Cap-to-Cap delegates’ questions were insightful and Sec. LaHood’s answers provided an even deeper look at how the DOT can affect our region. Some of those points included:

Q: How will the $8 billion of High Speed Rail funds be disbursed?
A: The money will be apportioned out across the states with regions like Chicago and North East corridors being competitive with California for the funds. No other region is in as good of shape as yours—all your hard work will pay off.

Q: What is being done to address reauthorization?
A: Transportation is working with the housing and energy departments to find comprehensive solutions to the Highway Trust Fund that is inadequate now; pooling resources and thinking beyond the $13 billion in economic recovery funds.

Q: How can we get local streets repaired through the recovery funds?
A: The bill was designed to put people back to work quickly and be the best use of tax payer dollars. The best way to account for those funds was through the state DOTs which proves more difficult for cities that can’t navigate the state system and I understand criticism on that. Recovery.gov has full accounts of every dollar and project.

Tim Murphy, GenCorp Realty, reported on Twitter: “SecTrans LaHood's priorities align nicely with the Metro Chambers' transportation issues - great news to start the day!” It was a tremendous kick-off for Cap-to-Cap 2009 and an inspiration to delegates as they headed out to the first of the morning meetings.

POLICY BRIEFING: HEALTH CARE REFORM IS IMPENDING
After a packed morning of meetings, delegates gathered in the Chinese Room of the Mayflower for the 2009 Policy Briefing that delivered experts on both sets of the health care reform proposals and the details that surround the debate. It was clear from the conversation that both sides agree that reform is absolutely necessary and that “something” is going to happen in 2009, it’s just a matter of how it comes together.

The briefing opened with an overview of the current status of the reform debate from Tim Jenkins of Nossaman, LLP. He gave an overview of the three players in the debate- the Obama Administration, the House and the Senate. The Administration is participating largely from the White House with agency secretaries not in place yet. The House has three key committees that are working on moving a bill forward together to the Rules Committee where it will need the support of bipartisan leaders to make it happen. Jenkins feels that the “really important action” will be in the Senate who are the furthest along in their bipartisan bills—one from the Finance Committee and one from the Health and Education Committee. The two bills are expected to merge before going to the floor in July, and Jenkins suggests advocacy efforts are best directed here.

Yolo County Supervisor Helen Thomson, right, drawing on her extensive health care expertise, then explained what reform means for the health of our economy. “With more than 60,000 jobs in our local hospital system, health care is an economic center for the Sacramento region that ripples into our larger economy. As more and more people lose jobs, they lose their insurance as well and we all pay for the unintended consequences of the uninsured using ERs as primary health care facilities.”

Thomson moderated a dynamic conversation on the competing proposals with leading proponents on both side of the issue. Peter Harbage, a senior fellow with the Center for American Progress and President of Harbage Consulting, spoke for Public Plan Choice, which includes a health plan exchange coupled with publicly-run health plan. David Merritt, representing the Center for Health Transformation and the Gingrich Group covered the ways in which the system can be successfully reformed with a focus on improving health first then quality of care and insurance coverage.

In his remarks, Harbage acknowledged that we are on the “brink of something happening.” This is in large part to the number of people participating in the process. “We can’t afford a broken system any longer, economically or morally” Harbage explained. As a nation we are looking at more than 50 million uninsured Americans, businesses spend 18% of their payroll on healthcare costs, insured people have a “hidden tax” of $1100 per family to cover uninsured medical costs and now is the time to fix it. He supports the Public Plan Option which allows for government to compete with private insurance in a market dominated by consolidated insurance giants.

Merritt finds Medicare/Medicaid to be unsustainable, but that insurance is secondary to the debate on reform. Focus should be on health first as studies show that health breaks down to the following components: 40% personal health choices, 30% genetics, 20% environment and only 10% the delivery system. Merritt points to the Intermountain health system in Utah as a great example of efficiency—the model could save other health systems 30% if followed. Following “best practices” can benefit efficiency and quality of care. Finally, he supports 100% coverage for everyone through a functional private market that allows people to buy insurance from any state with more competition driving down prices and improving service.

WHITE HOUSE ECONOMIC DIRECTOR LAWRENCE SUMMERS GIVES FOUR-POINT ECONOMIC PERSPECTIVE

Honorary Host Congresswoman Doris Matsui arranged for the White House Director of the National Economic Council, Lawrence Summers, right, to address our delegation at today’s Leadership Luncheon. After 30 years of being affiliated with the Cap-to-Cap effort, Matsui reminded delegates how important it is to be here in D.C. speaking in “one voice.” Over $175 million in Recovery Act funds have already been allocated to the Sacramento region with more to come. In fact, Matsui announced at the close of the luncheon that Army Corps of Engineers approved an additional $21 million for flood control.

Summers started his remarks with acknowledgement of the tremendous mentor he had in Bob Matsui and the great leader we have in Congresswoman Matsui. He then moved into the four points of change in Washington’s economic agenda under the Obama administration in the face of crisis and new leadership.

1) MOVE FAST: In the first 99 days of the new administration, they are committed to the largest economic recovery in U.S. history, focusing on putting money in pockets of middle class, saving jobs, increasing technology in the health care industry and modernizing our schools.

2) MOVE WISELY: The key to the economic plans are based in spending efficiently and transparently, even asking staff to watch internal White House spending—that means no new Marine One for Obama. There is a “revolution” in how the government handles defense spending, taking the lobbyists out of the deal and moving to decision-based on best pricing.

3) TAKING A LONG VIEW: What kind of country are we leaving for future generations? The U.S. has a lot of “deferred maintenance” issues in the area of environmental impact, crumbling infrastructure and broken entitlement programs like Social Security. The Recovery Act will be the largest infrastructure repair since the Interstate highway system was created and illustrates that we “can move quick and take the long view” too.

4) GENERAL INTEREST NOT SPECIAL INTEREST: No other industry in our country has grown like the lobbying industry, and new rules will be in place to prevent lobbyist from controlling decision-making in D.C. Tight management in government will be sure that the American families are the interest of the government, including the President reading 10 letters every day from the public to better understand the realities of our time.

Summers is working to be sure this chapter in American history is not a story like the 1930’s depression, but instead an era of re-building similar to the impact of Roosevelt’s New Deal. The new administration wants to level the playing field, creating a framework for every person to pursue their American dream.

Delegates were allowed a short Q&A with the director, including these few examples:

Q: What did we do to get into this financial mess?
A: Financial excess, over-leveraging—too much borrowed too easily. No regulations—if you’re big enough to receive government funding when you’re in trouble, you are big enough to be regulated.

Q: Unemployment is near 12% in Sacramento, how do we save and create jobs through Stimulus funds?
A: The Recovery Act provides the funding to areas where work is badly needed. health care, infrastructure projects, green technologies and many other area all will be targeted for funding that saves and creates jobs.

Q: What is being done to give small business access to credit?
A: There was never a big company that didn’t start small, and we have prioritized the need to support small business and open up credit lines to them. There will be people who no longer qualify for credit under new, stricter lending policies, but to those that qualify there will be extra capital available.

Cap-to-Cap Schedule

Arrivals

Chairman’s Reception
Mayflower Hotel  | State Room
5:30 – 7:30 p.m.

Honorary Vice Chairs
Mayor Kevin Johnson
Sacramento

Supervisor Helen Thompson
Yolo County

Welcome Breakfast
Mayflower Hotel | Grand Ballroom
7 – 9 a.m.

Honorary Host
Congressman Dan Lungren 

Featured Speaker
Ray LaHood
U.S. Secretary of Transportation

Morning Lobbying Appointments

Policy Briefing
Mayflower Hotel | Chinese Room
1 - 2 p.m.

Peter Harbage
Harbage Consulting

David Merritt
Center for Health Transformation and the Gingrich Group

Afternoon
Lobbying Appointments
 

Morning
Lobbying Appointments

Leadership Luncheon
Cannon Caucus Room
11:15 a.m. - 1 p.m.

Honorary Host
Congresswoman Doris Matsui

Keynote Speaker
Lawrence Summers
White House Director of the National Economic Council

Afternoon
Lobbying Appointments

Delegation Gala
Corcoran Art Gallery
6:30 – 9:30 p.m.

Featured Speakers
Congressman Mike Thomson & Congressman Tom McClintock