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E-News From Congressman Murphy
[July 18, 2011]

E-News From Congressman Murphy


Jul 18, 2011 (Congressional Documents and Publications/ContentWorks via COMTEX) -- On Thursday, the Energy & Commerce Oversight and Investigations Subcommittee voted with Rep. Murphy's support to subpoena documents that the Office of Management and Budget (OMB) has refused to produce related to the federal government's $535 million loan guarantee in 2009 to Solyndra Inc, a California solar power company start up, which promptly closed a factory after winning federal assistance.

The 2009 stimulus bill, which Congressman Murphy opposed, gave $11 billion in loans for renewable energy and biofuel projects. Solyndra received the first loan associated with this program, yet soon after began to experience serious financial problems and shuttered the factory. Solyndra claims it will now use the $535 federal assistance to build a new factory and add 3,000 construction jobs and 1,000 permanent positions. Yet Solyndra's closing of an old manufacturing facility and its June 2010 decision to cancel a $300 million initial public offering are signs that the company may not have been qualified for the guarantee.

Recent news stories, like the ABC News report linked here, revealed that the Department of Energy (DOE) may have cut corners in order to secure the loan guarantee for Solyndra. Government Accountability Office (GAO) auditors found that Solyndra received approval for the loan guarantee before the entire vetting process was complete, and that the DOE "treated applicants inconsistently, favoring some and disadvantaging others." Rep. Murphy said that the Committee was forced to subpoena documents about the loan guarantee because the taxpayers deserve to know more about the financial integrity of the entire $11 billion program.


"There are enough questions with this program and the granting of these loans that a thorough review is warranted. If the documents prove that this loan was not appropriately vetted, then these dollars clearly must be reprogrammed if not outright recouped," said Rep. Murphy.

The Committee is examining the roles played by the DOE and OMB in approving the loan to Solyndra, why Solyndra was selected to receive the first loan guarantee, and what type of risk assessment and analysis was conducted before and after the loan guarantee was made.

Since the investigation opened, OMB has consistently refused to produce the documents requested in the congressional oversight process. After months of stonewalling, the Oversight and Investigations Subcommittee held a meeting on Thursday to determine the next course of action. After thoroughly reviewing all the information presented, the subcommittee voted to subpoena all the documents needed in order to complete its investigation.

House to Vote on Cut, Cap and Balance Act on Tuesday As House, Senate and White House negotiators continue to deliberate details of the legislative package to bring to the floor for a vote on the debt ceiling, the House scheduled a vote for next Tuesday on one package intended to immediately begin the process of cutting spending, capping the debt and balancing the federal budget.

Called the Cut, Cap and Balance Act of 2011, which was unveiled Friday, the legislation contains three key provisions: First, the bill cuts $111 billion in government spending in the 2012 Fiscal Year. This is achieved by cutting non-security discretionary spending by $76 billion, and cutting a further $36 billion from mandatory spending. The bill makes no changes to Medicare and Social Security and also funds Defense spending at the President's requested level. These savings would bring the federal deficit below $1 trillion next year and will reduce the previous year's deficit by over $400 million.

Second, the bill sets caps on federal spending based on the total value of our economy, or GDP. In 2012 spending would be capped at 22.5 percent of GDP and be reduced each year until 2019, when it reaches 19.9 percent of GDP. 19.9 percent is about the average spending in relation to GDP over the last 30 years.

The third provision requires the passage of a Balanced Budget Amendment before raising the debt ceiling. Upon passage of the Amendment by both Houses of Congress, the bill provides for the President's request for a $2.4 trillion increase in the debt limit.

With Tuesday's scheduled vote on the Cut, Cap and Balance Act having just been announced on Friday, Congressman Murphy is asking for all concerned residents to please keep the comments coming. Please take a moment to click here and let us know your thoughts about the Cap, Cut and Balance Act and your overall views on the debt ceiling negotiations.

Local Professionals Visit Murphy's DC Office For Policy Talks on Healthcare and Education This week, a number of local professionals from the 18th Congressional District visited Congressman Murphy in Washington, DC for discussions on how federal policies are impacting local interests in the education and healthcare arena.

Rep. Murphy with Bethel Park resident Deborah Partsch and her children, Elizabeth and Nathan.

On Tuesday, Bethel Park resident Deborah Partsch visited the Congressman's office to talk about ways to keep healthcare costs down, especially with regard to prescription drug usage. As an employee of a Pittsburgh-based health insurer, Ms. Partsch helps employers design prescription drug programs that keep costs low and workers healthy. She explained to Congressman Murphy and his staff how insurance plans are evolving towards placing a greater emphasis on the pharmaceutical benefits component. She explained that employers work to encourage beneficiaries to use generic medicines and mail-order pharmacies as a way to bring down costs. However, many Pittsburghers like the one-on-one interaction with a pharmacist.

Studies show that prescription drug waste, a $250 billion a year problem, can be combated through "medication therapy management." In medication therapy management, pharmacists take a more active role in helping patients with multiple chronic illnesses like diabetes and hypertension, monitor their drug use. MTM can reduce preventable visits to the doctor's office and the emergency room.

Congressman Murphy is a co-sponsor of the Medication Therapy Management Benefits Act (HR 891), a bipartisan bill that will provide patients with chronic conditions covered under the Medicare Part D prescription drug benefit with a licensed pharmacist to help administer their medications.

"This simple fix will help ensure patients with chronic conditions, who use the largest share of Medicare services, are properly taking their drugs," said Murphy. "This will result not only in major cost savings but better health outcomes for our seniors, which should be the focus of any healthcare reform." On Wednesday, Jill Jones of Irwin met with Congressman Murphy about education programs meant to make the United States more competitive in STEM, or the science, technology, engineering and math fields. A new report from the Commerce Department this week showed that jobs in STEM fields have grown three times as fast as growth in non-STEM areas. STEM workers make more money, earning 26 percent more than non-STEM workers.

Ms. Jones represented the STEM Coalition, a group that believes our nation must improve the academic performance of our students in science and math. According to a 2010 report published by the President's Council of Advisors on Science and Technology, less than one-third of US eighth graders are proficient in math and science.

The STEM Coalition advocates for strengthening these curricula and increased federal investments in these disciplines.

Rep. Murphy discusses STEM Education with Jill Jones of Irwin.

Congressman Murphy recognizes the need for increasing interest in math and science among our nation's students, and is currently looking at ways to improve education at all levels. Last month, Rep. Murphy recently organized a congressional briefing on Value Added Growth Models. Instead of taking a one-size-fits-all approach to education, growth models rely on greater input from teachers, parents and administrators to develop a more accurate assessment of a student's ability. This methodology allows for improved tracking of a student's individual progress.

In addition to her work on the STEM Coalition, Ms. Jones is also a manager at Fisher Science Education, a division of Thermo Fisher Scientific. Rep. Murphy recently toured Thermo Fisher's new facility in Robinson Twp to highlight the importance the technology sector plays in Southwestern Pennsylvania's economy.

"Getting our kids more interested in STEM subjects is vital for our nation's long term success," said Murphy. "Technology is going to be a major factor as we seek to grow our economy and create better, higher paying jobs for Americans. Ensuring our nation's youth get a head start in these areas will help us continue to be the world's leader through the 21st Century and beyond." Cybersecurity Issues Remain in Spotlight The Defense Department spends 90 percent of its time playing defense against cyberattacks and 10 percent playing offense when it should be doing the opposite, according to the military's No. 2 officer.

On Thursday, a defense official announced that network attack last March by an unnamed "nation state" resulted in the theft of over 24,000 sensitive defense files from an undisclosed military contractor.

And in a strong signal that Pentagon officials view cyberattacks by foreign nations as a grave issue and potential act of war, Deputy Secretary William Lynn III said in a speech at the National Defense University that "the United States reserves the right, under the laws of armed conflict, to respond to serious cyberattacks with a proportional and justified military response at the time and place of its choosing." One of the policy issues to be discussed by the House Cybersecurity Task Force, of which Congressman Murphy is a member, is the ability of the Defense Department to play "offense" against cyber attackers. In testimony before Congress on Thursday, a Pentagon official said that US defense officials are having to respond and defend against attacks ninety percent of the time. The official said that hackers and cyberattackers must learn there will be consequences for their transgressions.

Beyond national defense, cybersecurity is crucial for the healthcare community, too. As Congressman Murphy explained an audience of Health IT executives on Wednesday, the implementation of new electronic medical records systems demands that sensitive medical data is protected. Access to patient records allows global crime syndicates to perpetrate financial fraud against insurers, especially Medicare.

As Congress deliberates how to improve the nation's cybersecurity, the House Energy and Commerce Committee held a hearing this week focused on preserving Internet privacy. Although the Internet has vastly improved the way we communicate and conduct business, it has not evolved without dangers. The huge stores of data and information kept online can be vulnerable to hackers, identity thieves, and terrorists.

For consumers, the consequences of cyber attacks to everyday Americans came into sharp focus last April, when it was revealed that an attack on Epsilon Data Management's servers resulted in the theft of some 60 million email addresses and other customer data. Just a few weeks after the criminal attack on Epsilon, Sony announced that an attack on its PlayStation Network servers affected up to 77 million accounts, where hackers gained access to names, email addresses, passwords, physical addresses and birthdates.

As the House Cybersecurity Task Force continues to examine implementing the best frameworks that secure online data and protect critical infrastructure from cyberattacks, they will be looking for the most effective ways to strike a balance between keeping private consumer data private and ensuring e-commerce can continue to grow and thrive.

Read this original document at: http://murphy.house.gov/index.cfm?sectionid=135&sectiontree=23,24,135&itemid=1737

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