October 22, 2008

Secretary James B. Peake, M.D.
U.S. Department of Veterans Affairs
810 Vermont Avenue, NW
Washington, DC  20420

The Honorable James Peake:

There is a sacred trust between America’s veterans and the American people, and I write to you to address a violation of this trust with our nation’s veterans.  I am outraged to hear reports over the past week detailing active claims and unprocessed mail found in shredder bins at the Detroit Veterans Affairs office.

The Detroit News reported that “an official in the department’s Office of Inspector General confirmed Wednesday that the Detroit office and three other regional offices were visited recently as part of an audit of the department’s handling of veterans benefits claims.”  I am encouraged by your proactive response to this particular situation, but it is evident new safeguards and standards for processing veterans benefits claims are needed.

Veteran of Foreign War National Commander Glen Gardner recently stated the “the question that begs to be asked and answered is how many veterans had their disability and compensation claims disappear down a paper shredder?”  I would like an answer to this inquiry and would also like to know what process the Department of Veterans Affairs will immediately deploy to help those veterans who have been affected by the mishandling and destruction of applications and supporting documentation.

It has been reported that the Veterans Affairs Office in Detroit has the highest number of six month old claims of VA offices in the eastern area.  What new processes, training, and resources will you commit to the Detroit office to ensure that claims are efficiently processed in a timely manner?

I have pledged to work for our nation’s veterans and look forward to work with you to ensure our veterans receive the support and care they deserve.  I look forward to your response and swift action to address these issues so important to those who served our country.

Sincerely,

Tim Walberg
Member of Congress

UNION CITY — Dressed to the nines in a star-spangled tie and a flag pin, Keo Sok sheepishly walked onto the floor of the Union City Community Schools’ field house to perhaps the warmest applause ever to befall a middle school janitor.

With an assist from the office of U.S. Rep. Tim Walberg — who was on hand to congratulate the 48-year-old middle school custodian — and an OK from a federal judge, Sok was able to share his shining moment with the students and teachers that helped him pass his citizenship test. An estimated 400 students and community members attended Wednesday.

Read more here.

Congressman Tim Walberg, who opposed taxpayer bailouts of the financial sector, joined a delegation of members concerned about AIG’s reckless spending and sent a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke asking the two leaders to ensure taxpayer dollars were not used by AIG on these spending sprees. Full text of the letter is below:

Dear Secretary Paulson and Chairman Bernanke:

We write to express strong concerns about AIG’s possible misuse of federal taxpayer funds.

It has come to our attention that, after the Federal Government provided a loan of $85 billion to AIG, the AIG executives hosted a lavish $440,000 retreat at the St. Regis Resort in Monarch Beach, California. Even more troubling, the day after this was revealed to the House Oversight and Government Reform Committee, the New York branch of the Federal Reserve announced it will borrow $37.8 billion in investment-grade securities from AIG in exchange for cash.

At a time when many of our constituents have serious concerns about their own financial security, we demand that you ensure that no taxpayer funds were used by AIG to host this retreat. If taxpayer funds were used, we demand that AIG repay the American people in full. It is crucial that the American people be able to trust the actions of the Federal Reserve and the Treasury.

WOOD TV - Walberg comments on signing of bailout bill

WWMT - Michigan Representatives on the bailout

WILX - Rogers, Walberg Vote “No” on Bailout

Jackson Citizen Patriot - Area leaders doubt bailout plan

“Through the thousands of calls, emails and letters sent to my office, I know that my constituents want Congress to take action to avert further economic distress, but south-central Michigan believes Congress must not take action just to take action. The vast majority of my constituents are working hard, paying their bills and making ends meet for their families, and they believe real alternatives exist to running up the bill the government sends to taxpayers.

“While I am pleased some positive reforms have been made to the bill the House rejected on Monday, including a provision to provide greater FDIC protection to Americans and America’s hometown banks as well as the SEC working on reform to mark-to-market accounting, this bill remains a massive, $700 billion taxpayer financed bailout. Additionally, as too often is the case in Washington, unrelated spending items have been tacked on to this bill, including special interest provisions such as millions of dollars for makers of wooden arrows, the Puerto Rican and Virgin Islands rum industry, wool fabric producers and Hollywood movie makers. All of these Washington, D.C. special interest provisions have nothing to do with addressing America’s financial crisis and providing the fundamental reform our economy desperately needs.

“I continue to be disappointed in President Bush and Secretary Paulson for refusing to consider other options and reforms. I cannot support putting future generations of Americans in debt to pay for this expensive band aid that will not solve our long-term economic problems.”

Rep. Tim Walberg, who represents the Jackson County area, voted against the previous bailout measure. His office released an e-mail statement from Walberg on Wednesday night criticizing the approach Washington is taking in dealing with the financial crisis.
“Common-sense reforms exist that could immediately insert new private capital into our markets without putting taxpayers at risk, and I will keep working with my colleagues to push for these important reforms,” said the e-mail from Walberg, R-Tipton. “I continue to be disappointed in President Bush and (Treasury) Secretary (Henry) Paulson for refusing to consider other options and reforms.”

Politico.com reports today that the Senate will consider another bailout proposal tonight. The House of Representatives is scheduled to reconvene Thursday afternoon.

In a written statement, Walberg said the bill was “nothing more than an expensive, taxpayer-funded Band-aid that will not solve our long-term economic problems.” He called for market-to-market accounting, net worth certificates and reducing taxes and regulations that he said prevent capital from entering the market.

Coldwater Daily Reporter:

U.S. Rep. Tim Walberg, who opposed it, said “While I applaud the efforts of House Republicans to improve this proposal, the bailout bill … is nothing more than an expensive, taxpayer-funded band aid that will not solve our long-term economic problems.”
Walberg continued, in a press release, “I am extremely disappointed in President Bush for refusing to consider other options and for thrusting this legislation on the American people in a way that only created more uncertainty. Secretary Paulson has failed the American people by refusing alternative plans… Today our financial markets face serious challenges that could result in dire consequences, and while Congress can take action to avert further economic distress, Congress must not take action just to take action.”

Jackson Citizen Patriot:

Meanwhile in Washington, U.S. Rep Tim Walberg, R-Tipton, issued a statement calling the $700 million rescue package “an expensive, taxpayer-funded Band-Aid that will not solve our long-term economic problems.”

Lansing State Journal:

Rep. Tim Walberg, R-Tipton, said he was “extremely disappointed” in Republican President Bush and said Paulson had “failed the American people by refusing alternative plans.”
Walberg was among conservative Republicans who proposed other measures, including a suspension of the capital gains tax.
“Congress must not take action just to take action,” Walberg said.

Toledo Blade:

U.S. Rep. Tim Walberg (R, Tipton, Mich.) said the bailout was ‘an expensive, taxpayer-funded Band-Aid that will not solve our long-term economic problems.’
Among his proposed solutions, Mr. Walberg advocated lowering capital gains and corporate tax rates ‘to enable American companies to compete, innovate, grow, and expand.’

“These are common-sense reforms that could be put in place right away, if Congress would take time to debate alternative ideas to a taxpayer financed bailout. Instead, our President, the Treasury Secretary and a frenzied media climate have eliminated the possibility of further debate to work on a deal that would protect taxpayers.”

It is evident that the challenges faced by America’s financial markets require action from Congress. Any action taken by Congress must protect American taxpayers and encourage economic growth. We must not take action just to take action.

It is unacceptable for the federal government to just take on $700 billion in speculative debt.  I believe alternatives exist to a taxpayer-funded bailout, and as negations remain ongoing, I am hopeful discussions result in a package that will protect the taxpayers from bailing out irresponsible companies, institute reforms to inject capital into the financial system and include policies to spur economic growth.  What America’s markets need now is liquidity, but presently tax and regulatory barriers are preventing new capital from entering our markets.

Taxpayers should under no circumstances subsidize severance packages for failed CEOs. Additionally, we must increase transparency and accountability on Wall Street. I would like to see audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed or to see if they cooked their books.

Increasing American energy production and preventing scheduled tax increases are critical for long-term economic growth, no matter what plan is negotiated, and I will continue fighting for my constituents on these issues. Congress also needs to lower the capital gains and corporate tax rates to enable American companies to innovate, grow and expand.

This situation is a clear indication that government regulation did not work because it was not properly implemented. In the coming months, Congress must determine why these regulations did not work and how to ensure they do in the future.

If you took a road trip this summer, you probably noticed that gasoline prices in most nearby states are much lower than they are in Michigan. Currently, gasoline is Metro Detroit is averaging 20 to 30 cents above the national average. Don’t blame OPEC. Blame in part the state’s politicians, who have pushed state taxes on a gallon of gasoline to more than 11 cents higher than the average of the states. Michigan’s total state and federal gasoline tax burden is 60.7 cents. That compares with 46.4 cents in Ohio, 40.9 cents in Kentucky, 50.7 cents in Pennsylvania, 40.2 cents in Minnesota, 56.9 cents in Indiana and 51.3 cents in Wisconsin. Only New York, California, Illinois and Connecticut have higher gasoline taxes.

Just one day after House Speaker Nancy Pelosi indicated Democrats would give in to the demands of pro-energy members of Congress and the American people and lift current bans on offshore and oil shale energy production, Senate Majority Leader Harry Reid is actively working to keep the current oil shale ban in place. Reid is trying to slip a bill through the Senate containing a provision extending a ban on oil shale. The current ban is set to expire on October 1.

Additionally, according to The Hill, “liberal House Democrats on Wednesday vowed to get a new offshore drilling moratorium enacted early next year, a day after learning they’d lost this year’s battle over an issue that dominated congressional politics for most of the summer.” This news comes just one day after Speaker Pelosi finally caved in after opposing an increase in American energy production for months. Current bans on offshore drilling and oil shale recovery will come to an end on October 1, unless Senator Reid has his way.

America still needs an “all of the above” energy plan with more drilling, more alternatives and more conservation, but expiration of the offshore drilling ban puts America on the right track to ending our dependence on foreign oil. Pro-energy members of Congress on both sides of the aisle will actively work to make sure Senator Reid allows the current moratorium to expire on October 1.

Back in August, I and many of my colleagues stayed down on the House floor, giving speeches in a dark House chamber calling for a vote on increasing energy production. We were encouraged by literally tens of thousands of Americans who called, emailed or personally thanked us and encouraged us in our efforts. The decision to lift the offshore drilling ban is a direct result of the pressure the American people and pro-energy members of Congress put on Speaker Pelosi. I encourage all concerned citizens to continue to respectfully push for an “all of the above” energy plan.  I will continue to do my part and work to expand America’s energy production.

Congressman Tim Walberg today issued the following statement after House Speaker Nancy Pelosi indicated Democrats would give in to the demands of pro-energy members of Congress and the American people and lift current bans on offshore and oil shale energy production.

“After opposing an increase in American energy production for months, Speaker Pelosi finally caved in and current bans on offshore drilling and oil shale recovery will come to an end on October 1. America still needs an ‘all of the above’ energy plan with more drilling, more alternatives and more conservation, but expiration of the offshore drilling ban puts America on the right track to ending our dependence on foreign oil.

“Back in August, I and many of my colleagues stayed down on the House floor, giving speeches in a dark House chamber calling for a vote on increasing energy production. We were encouraged by literally tens of thousands of Americans who called, emailed or personally thanked us and encouraged us in our efforts. The decision to lift the offshore drilling ban is a direct result of the pressure the American people and pro-energy members of Congress put on Speaker Pelosi. We must continue to respectfully push for an ‘all of the above’ energy plan.”

Rep. Tim Walberg, R-Tipton, said he “has serious concerns about putting taxpayer dollars on the line for $700 billion.”
He also opposes subsidizing severance packages for company executives.
“This situation is a clear indication that government regulation did not work because it was not properly implemented,” Walberg said in a written statement.

Detroit News:

On the House side, U.S. Rep. Tim Walberg, R-Tipton, said his priorities are “protecting taxpayers, encouraging economic growth and making sure taxpayers are not subsidizing severance packages for failed CEOs.”

In these trying economic times, Congressman Tim Walberg believes a new energy bill that increases American energy production would help all sectors of our economy, help Americans pay less for gas and enable American companies to hire more workers. The Congressman supports an all of the above plan: more alternatives, more conservation, and more drilling, including off American shores.

We will continue to keep you updated on this issue as the week progresses.

The U.S. House of Representatives overwhelmingly passed legislation Thursday to reauthorize a federal program to clean up toxic sediments in rivers and harbors feeding into the Great Lakes and triple its annual appropriations to $150 million annually.

“The Great Lakes are a treasure essential to both Michigan and the entire nation,” said U.S. Rep. Tim Walberg, R-Tipton. “… Every day we wait to address the problems in our Great Lakes, they get worse and the solutions get more costly.”