On Wednesday October 29, Louisville Mayor Jerry Abramson led the witness list at the powerful House Transportation and Infrastructure Committee. This Committee designed and packaged the House-passed stimulus in September. And from what Minnesota Chairman Oberstar said in his opening remarks, his Committee will be the main source for the next stimulus package that is expected to be on the House floor after the election next week and before Thanksgiving.
Oberstar was quite strong in his opening remarks as he stated that this Congress would not lament and stand on the sidelines as the economy goes deeper into crisis. He said his Committee would not sit on the sidelines and watch things go downhill. He said as soon as the hearings are over, committee staff will put together the mix of proposals for action after Congress come back to town.
Chairman Oberstar commended Mayor Abramson for his "spirited" presentation.
Jerry Abramson as a wide breadth of experience as Mayor of Louisville and our past President during the Clinton years. He knows how to put allies together for any battle and campaign and he wins because he articulates his vision with brilliant narratives about how things actually work on Main Street America.
Today he has a new metro city, the 16th largest in the nation. The economic activity covers Louisville and Jefferson County. When you talk metro economies, they don't come any better than Abramson. He talks it and he walks it. What he does every day--and he works it 24-7--has significant economic role to both Kentucky and Indiana because his "little ole River City" as he affectionately calls it, sits on the river dividing the two states. His economic footprint includes the economic activity that comes across the bridges of the bordering Hoosiers in several Indiana counties. Over the bridges, they come to Louisville to work, spend money shopping and for cultural, sports and entertainment activities.
Abramson centered on three points--the need for Community Development Block grant funds and the need for a Green Jobs initiative through Energy/Environment Block grants providing immediate funds for short term investments in cities, counties and states. Further, Abramson was adamant about the highway funds being distributed through the current Surface Transportation program to allow maximum flexibility for local elected officials to tailor programs to meet needs at the local level.
Oregon Congressman Fazio explained that the last stimulus, passed in September, would have given all the highway money to the States because it was the consensus that states could activate ready to go projects faster. Mayor Abramson came back at him arguing that cities and counties through the metropolitan planning organizations (MPOs) are ready to go now. He challenged the statement that states could do it faster. He also stressed the need to keep our metro economies strong to keep the national economy from worsening even further in the months ahead.
While Mayor Abramson was at the Transportation and Infrastructure hearing, Trenton Mayor Doug Palmer was in the midst of a rather turbulent hearing before the other power Committee--Ways and Means.
Everybody woke up when the Governor of South Carolina, appearing for the Governors, proclaimed the great State of South Carolina didn't need any stimulus money. It was astonishing because all we have heard from every credible economic expert is about the "cash-strapped" states. The phrase "cash-strapped states" have been in so many headlines recently and the images through Governors proclamations of extreme concern gave the Committee Chairman, our friend, NY Congressman Rangel, the opportunity to ask Governor Sanford if the people of South Carolina even needed unemployment benefits. The SC Governor stressed the need to abolish unfunded federal mandates. Gov. Sanford's comments did not jibe with the Governor of New York who is going through hellacious budget issues in Albany. And Governor Corzine, appearing with Abramson in the other Committee was giving total support to an immediate stimulus package.
Mayor Palmer was third to speak. The Governors in their opening statements quoted great poets. When it came time for Palmer to speak, he opened saying he wanted to quote another great poet, Mr. John Lennon of Beatles songwriting fame, wrote, "Help! I need somebody!" It brought great laughter and amusement from the crowd packed Committee hearing room and CNN was running the accounts of this poetic statement before Palmer finished his statement. Doug Palmer was the perfect witness in the perfect and devastating economic storm hitting Main Street USA now. If ever there was a better candidate to talk about our Main Street stimulus, it was the Mayor of Trenton who is going through budget cuts and layoffs now due to the cuts at the State House in Trenton. He is street smart. He knows what is happening on Main Street. He lives with it. Further, his agile and mobile mind and understanding of the nation's mayors needs as an immediate past- president and architect our Mayors 08 Ten Point Plan all served him and all of us well at this most important Congressional Hearing. .
Palmer made the point that our Main Street stimulus package is different from the recent House-passed bill because it contains a CDBG initiative, a Green Jobs initiative and the use of the STP program is a smarter way to invest highways monies.
The nation is now focusing on the election this Tuesday. And the need for the stimulus investment initiative will be front and center when the Congress returns on November 17.
While there is the excitement of a new President, mayors must not lose sight of the work that we must do as we demand the next stimulus package must be the Main Street stimulus package so boldly and well presented by Mayors Abramson and Palmer this week.
Soon all mayors in the nation will be receiving 50 hard copies from me sent directly to your office. Talk to you members of the House and Senate who will be returning to Congress on Nov 17. Also share our recommendations contained in our Main Street stimulus with City Council members, local media, business, non-profit and civic leaders now.
A survey should be in City Hall now--requesting your recommendations as to projects that will be funded through our Main Street stimulus funds. It is important that you get that information back to us by November 7.
Thanks for your attention and support as we go forward. Together we can make a difference to lessen the worsening economic conditions for you and your city during this national economic challenge before us.
Friday, October 31, 2008
Tuesday, October 28, 2008
Main Street Stimulus – Launch and Update #1
Current Situation
On October 13, House Speaker Nancy Pelosi held an Economic Forum with House leaders and national economists. It was stated at the Forum that up to a $300 billion stimulus may be needed. Infrastructure and jobs were highlighted to be included in a stimulus package.
Even before the Forum, Speaker Pelosi stated that a $150 billion may be needed - and she indicated she will call the House back to Washington after the November 4 elections. She has since made similar statements. Senate Majority Leader Reid has also said he expects the Senate to take up a stimulus bill after the elections.
Speaker Pelosi has directed the appropriate House committee chairs to hold hearings on this critical issue, and those hearings started on October 20 and will continue until the final one on October 30.
2008 USCM Winter Meeting - $168 Billion Tax Rebate Stimulus
In January of this year at our Winter Meeting in Washington, the reality of the first stimulus package was an issue among our own mayoral leadership. In the Executive Committee, mayors raised seriously the question of an infrastructure package to be included as a part of the tax rebate stimulus package that was being put together by President Bush and Speaker Pelosi.
After discussions, mayors decided to support the first stimulus package and to wait for the second stimulus to demand infrastructure short-term investments to keep our metro economies strong. This $168 billion tax rebate package was passed by the House and Senate and signed into law in February. Hence money went out in the form of tax rebates, but the gasoline costs skyrocketed to an all time high and no doubt many of those payments helped millions to ease the pump pain and reduced their personal and household increased energy costs.
House and Senate Action on Pelosi and Reid/Byrd Package
Last month, a second stimulus package amounting to $60 billion passed the House. A similar stimulus package was blocked in the Senate, receiving 52 votes, 8 votes short of the 60 needed to prevent a filibuster. The U.S. Conference of Mayors supported both measures – which relied heavily on infrastructure investments.
$700 Billion Wall Street Bailout
The national economic crisis that came to a head last month prompted the White House and Congress to provide a $700 billion measure, termed by many and commonly referred to as a Wall Street Bailout. Conference President Manny Diaz of Miami sent a letter to Congress urging them to act.
Main Street – Cities, Counties and States
As many citizens and small businesses saw their tax money going to help Wall Street, there was serious concern over the Federal Government seemingly ignoring the needs of Main Street America.
While the $700 Billion measure has helped stabilize the financial and banking system, the citizens and small businesses of our cities, counties and states are concerned about the credit crunch, and loss of jobs in this economic downturn.
At our Conference of Mayors Fall Leadership earlier this month, a Main Street Stimulus package was discussed and Conference staff was directed to develop an infrastructure and jobs Main Street Stimulus package.
Our base for a new Main Street Stimulus was built on the $60 billion proposal, mentioned above, that passed the House and was blocked in the Senate. The total amount of our Main Street Stimulus is based on a $150 billion stimulus amount that is being currently being mentioned by Congressional leaders. All initiatives of our Main Street Stimulus meet the jobs and infrastructure criteria of quick short-term investments to stimulate Main Street with jobs for unemployed workers and economic activity for businesses in our metro areas. We have added three initiatives to the House-passed bill. They are CDBG, Infrastructure, Green Jobs- Energy/Environment Block Grants, and Public Safety. In addition, we are adamant that highway funds must be distributed through the Surface Transportation Program to ensure the flexibility of funding will be given directly to our local officials to meet the infrastructure needs in our metro areas.
In all three of these initiatives, CDBG, Energy Block Grants, and STP, upwards of 30
percent would be sent to the 50 states. The remaining 70 percent of these three initiatives would go to cities and county areas - which accounts for 90 percent of the nation’s gross domestic product.
The USCM Executive Committee, Advisory Board, and Committee Chairs received a briefing on our proposal during an October 20 conference call. President Diaz and the members refined and approved our Main Street Stimulus proposal during that call.
Tomorrow we take our proposal to Congress. Two Past-Presidents of the Conference of Mayors will be strong advocates. Louisville Mayor Jerry Abramson will testify before the House Committee on Transportation and Infrastructure. Trenton Mayor Doug Palmer will testify before the House Ways and Means Committee.
As each day passes, economic indicators show strong sentiment for Congress to act on a stimulus measure when they return on November 17. We will need your help to pass our Main Street Stimulus initiative. The key issue will be the Senate – where many Republican and Democratic Senators running for re-election have now endorsed the need for a new stimulus package.
Infrastructure Survey to Mayors – November 7 Deadline
To assist us with further validation, we need your help on giving us immediately your ready-to-go short-term investment projects. Our survey will be sent to you tomorrow (October 29), and we will need that information sent back to us by November 7.
We appreciate your help and immediate attention to this critical issue as we all work together to pass our Main Street Stimulus to assist our citizens and small businesses in cities, counties and states during these challenging times.
Friday, October 17, 2008
Washington, DC - October 10, 2008
Washington, DC
October 10, 2008
In Palm Beach on October 3, we concluded the Fifth ë08 Action Forum of the Diaz Presidency. That's Five Forums in Five Cities. These Forums were a great success. Launched by President Diaz at The National Press Club on August, 4 we went the next day to Philadelphia, then to New York City, on to Denver, aborted in St. Paul when Gustav hit the Gulf, on to Los Angeles and Miami and Palm Beach ñ all in roughly eight weeks. This effort, this hard work and focus by all is a testament to our organization and breathes life into what has been described as the agility and mobility of The Conference.
At our Fall Leadership, all Five Forum Reports were adopted, plus we announced our plans to bring forth our proposals for realistic immigration reform. Reforming the Transportation Security Administration (TSA) was discussed as experts and travel industry representatives continue to stress the need for more friendly and improved welcoming attitude from TSA employees. Airline reform was on the agenda and the discussion turned again to the need for an improved attitude for airline service employees. The comments bordered on airline bashing while there were issues such as alternative fuel, a new traffic control system, increased funding for airport improvements, raising the passenger facility charges and full funding of the essential and universal service program for certain cities challenged by a cut back of the number of flights to and from certain airports that took less dialogue. No doubt new technology and even existing technology used in other countries is needed. These discussions will no doubt continue as we head toward our January Winter Meeting as there were no clear and concluding recommendations emerging.
On the national economic front, on the eve of our Fall Leadership Meeting, Conference President Diaz sent a letter to Congress urging them to move with haste to take action. The response was the $700 billion ìbail-outî of Wall Street.
Oakland (CA) Mayor Ron Dellums continues to raise the question about ìthe other sideî of the $700 billion bail-out. As a former Congressman he had had conversations with House Banking Chair Barney Frank in which he raised the question if there will be any money left to fund the multi-billion dollar investments that are contained in Five Forum Reports adopted for consideration when our next President takes office in January. After some discussion, a letter was approved to be sent to Congress to remind them of infrastructure, energy, crime and work force training investments needed throughout America.
While the $700 billion bailout package for Wall Street passed, Stamford (CT) Mayor Dannel Malloy raised the question of fiscal assistance for Main Street. He indicated he has reports that there will be a third proposed Congressional stimulus package before the next President takes office that will provide stimulus to the states. Many states are going through serious shortfalls and are taking drastic budget actions that are being passed down to our cities for our citizens to bear the brunt. In addition to these reductions of needed service, many of our citizens are being hit hard by a loss of their retirement nest eggs' value based on the losses of their stocks and mutual fund investments.
USA Today this week reports a majority of Americans are bordering on depression and rage over the current economic decisions that are going to help Wall Street and not to their retirement funds or to "Main Street" where they live and work.
The economic mood darkens and declines deepen and somehow the $700 billion dollar bailout doesn't seem to be working. Further, the $85 billion bailout loan to AIG wasnít enough and yesterday the Federal Reserve announced $38 billion more in cash is on the way.
At our Leadership Meeting, I reported that the second Pelosi stimulus package totaling $60 billion for infrastructure, food stamps, extended unemployment benefits, to struggling state governments was blocked in the Senate. This report was printed in the last issue of U.S. Mayor on September 29.
The first stimulus package last February totaling $168 billion was an issue at our Conference of Mayors Executive Committee last January at our Washington Winter Meeting. This package was a total tax rebate initiative. Mayors at our Winter Meeting voiced concern about a lack of infrastructure funding but there was consensus we should hold our concern and wait for infrastructure funding in the second stimulus.
According to reports, many tax rebates went straight into gas tanks as the gasoline prices spiked earlier this year and hit $4.00 a gallon.
The second stimulus package, $60 billion, as mentioned above failed last month.
Mayor Malloy had received word from his sources as I had received which indicates another stimulus, the third one, is coming.
After we returned to Washington from our Fall Leadership Meeting, the Governors continue to make announcements about fiscal relief for their "cash-strapped" budgets. California Governor Arnold Schwarzenegger has stated he needs a $7 billion loan. Almost every day another Governor comes forth. Many Governors are in trouble and are not talking about it and more bad news will come out after certain state elections.
On Wednesday of this week, House Speaker Nancy Pelosi announced she may call Congress back to Washington after the November 4 election to put together a new federal spending package worth $150 million. That's $90 billion more than was passed by the House and blocked by the Senate last month. As U.S. Mayor goes to press, Speaker Pelosi has announced that House Democrats will convene an Economic Forum on October 13 to consider when, not if, we will have another federal spending stimulus package for consideration.
At issue in the third proposed stimulus package is to what extent federal funds will be provided directly to cities to meet our challenges and needs. We are making every effort and we will need the focused attention of our USCM leadership and member mayors to present viable options for job producing initiatives.
It's very difficult to keep up with the pace and swiftness of Congress as they sometimes put together stimulus and bailout initiatives without mayoral or any consultation. These packages, as we indicated to our leadership in Palm Beach, are inside operations. They are presented to us and we do our best to support them even though the spending usually favors the states. And in many instances, badly needed funds somehow donít seem to flow down to our city halls once they are sent nonstop to state capitols. We will monitor the situation and report to our membership as the third stimulus takes shape. Our goal is to demand a city portion of the total for our cities and we will need your help.
No doubt, Washington is in turmoil over the economic crisis in our nation. And the old order of our financial structure which has been propped up and protected by both the Democratic and Republican parties is experiencing a meltdown. And a new order will emerge. Today, our federal government announced they not only will loan banks money; they will move to actually buy portions of our banks.
And the other issue is the lack of both Senator Obama and Senator McCain to give us their specific proposals. The first debate was a sleeper. Jim Lehrer, of PBS, let them drone on. He asked them to talk to each other. They refused. He just sat there.
In the second debate when the candidates did start talking to one another and seemed to want to engage, Tom Brokaw acted like a high school basketball referee with a quick whistle and he impeded the dialogue. The Washington Post on the day of the second debate published five questions from mayors to be asked if they were there. Brokaw was armed with these questions but he refused to use them. Senator McCain did open with a suggested remedy on distressed mortgage holders but there was no follow up and it didnít stick. The second debate in Tennessee, left us like the first debate in Mississippi, both without a clear picture as to what specific economic recovery plans they have to propose for national financial crisis. No doubt, the national financial issue will be the number one agenda item when one of them is our President-elect in less than a month from now.
David Broder, as I have said before, one of the last true journalists left in America, wrote yesterday in his Washington Post column entitled, "Running From Reality."
"Something strange is happening in this strangest of all presidential contests. The longer it goes on, the less we know about what either of these men would do if he were in the Oval Office next year."
Broder writes that they have been asked twice once in Mississippi and in Tennessee last night what their priorities will be and, "It was a stunning rejection of reality, this nation is mired in two wars it does not know how to end. It is struggling to escape the worst economic crisis since the Great Depression. The federal government is staring at record deficits, with no plausible plan for financing the retirement and health care needs of a giant generation of retirees. Our transportation and education systems need help, and we are dependent on other countries for the energy we use. In the face of all this, Obama and McCain are stubbornly repeating promises they made in happier times, if either of them has a clue what to do to help this tottering economy, he is keeping it to himself."
Broder goes on to say that both men have given us "every reason to admire their character."
Today, October 9, the rhetoric from Senator McCain is to force Senator Obama to tell the truth about his association with terrorists and Senator Obama says that Senator McCain is guilty of "erratic behavior." It's as if they don't recognize what's going on on Wall Street or Main Street.
Let's hope the third debate will offer more specifics.
Meantime, hello folks! Back in Washington, we're about to go for a third try on some infrastructure stimulus.
And we have Five Reports from Five Diaz Forums with recommendations and innovations all waiting for one of them once the election is over, the sooner the better.
October 10, 2008
In Palm Beach on October 3, we concluded the Fifth ë08 Action Forum of the Diaz Presidency. That's Five Forums in Five Cities. These Forums were a great success. Launched by President Diaz at The National Press Club on August, 4 we went the next day to Philadelphia, then to New York City, on to Denver, aborted in St. Paul when Gustav hit the Gulf, on to Los Angeles and Miami and Palm Beach ñ all in roughly eight weeks. This effort, this hard work and focus by all is a testament to our organization and breathes life into what has been described as the agility and mobility of The Conference.
At our Fall Leadership, all Five Forum Reports were adopted, plus we announced our plans to bring forth our proposals for realistic immigration reform. Reforming the Transportation Security Administration (TSA) was discussed as experts and travel industry representatives continue to stress the need for more friendly and improved welcoming attitude from TSA employees. Airline reform was on the agenda and the discussion turned again to the need for an improved attitude for airline service employees. The comments bordered on airline bashing while there were issues such as alternative fuel, a new traffic control system, increased funding for airport improvements, raising the passenger facility charges and full funding of the essential and universal service program for certain cities challenged by a cut back of the number of flights to and from certain airports that took less dialogue. No doubt new technology and even existing technology used in other countries is needed. These discussions will no doubt continue as we head toward our January Winter Meeting as there were no clear and concluding recommendations emerging.
On the national economic front, on the eve of our Fall Leadership Meeting, Conference President Diaz sent a letter to Congress urging them to move with haste to take action. The response was the $700 billion ìbail-outî of Wall Street.
Oakland (CA) Mayor Ron Dellums continues to raise the question about ìthe other sideî of the $700 billion bail-out. As a former Congressman he had had conversations with House Banking Chair Barney Frank in which he raised the question if there will be any money left to fund the multi-billion dollar investments that are contained in Five Forum Reports adopted for consideration when our next President takes office in January. After some discussion, a letter was approved to be sent to Congress to remind them of infrastructure, energy, crime and work force training investments needed throughout America.
While the $700 billion bailout package for Wall Street passed, Stamford (CT) Mayor Dannel Malloy raised the question of fiscal assistance for Main Street. He indicated he has reports that there will be a third proposed Congressional stimulus package before the next President takes office that will provide stimulus to the states. Many states are going through serious shortfalls and are taking drastic budget actions that are being passed down to our cities for our citizens to bear the brunt. In addition to these reductions of needed service, many of our citizens are being hit hard by a loss of their retirement nest eggs' value based on the losses of their stocks and mutual fund investments.
USA Today this week reports a majority of Americans are bordering on depression and rage over the current economic decisions that are going to help Wall Street and not to their retirement funds or to "Main Street" where they live and work.
The economic mood darkens and declines deepen and somehow the $700 billion dollar bailout doesn't seem to be working. Further, the $85 billion bailout loan to AIG wasnít enough and yesterday the Federal Reserve announced $38 billion more in cash is on the way.
At our Leadership Meeting, I reported that the second Pelosi stimulus package totaling $60 billion for infrastructure, food stamps, extended unemployment benefits, to struggling state governments was blocked in the Senate. This report was printed in the last issue of U.S. Mayor on September 29.
The first stimulus package last February totaling $168 billion was an issue at our Conference of Mayors Executive Committee last January at our Washington Winter Meeting. This package was a total tax rebate initiative. Mayors at our Winter Meeting voiced concern about a lack of infrastructure funding but there was consensus we should hold our concern and wait for infrastructure funding in the second stimulus.
According to reports, many tax rebates went straight into gas tanks as the gasoline prices spiked earlier this year and hit $4.00 a gallon.
The second stimulus package, $60 billion, as mentioned above failed last month.
Mayor Malloy had received word from his sources as I had received which indicates another stimulus, the third one, is coming.
After we returned to Washington from our Fall Leadership Meeting, the Governors continue to make announcements about fiscal relief for their "cash-strapped" budgets. California Governor Arnold Schwarzenegger has stated he needs a $7 billion loan. Almost every day another Governor comes forth. Many Governors are in trouble and are not talking about it and more bad news will come out after certain state elections.
On Wednesday of this week, House Speaker Nancy Pelosi announced she may call Congress back to Washington after the November 4 election to put together a new federal spending package worth $150 million. That's $90 billion more than was passed by the House and blocked by the Senate last month. As U.S. Mayor goes to press, Speaker Pelosi has announced that House Democrats will convene an Economic Forum on October 13 to consider when, not if, we will have another federal spending stimulus package for consideration.
At issue in the third proposed stimulus package is to what extent federal funds will be provided directly to cities to meet our challenges and needs. We are making every effort and we will need the focused attention of our USCM leadership and member mayors to present viable options for job producing initiatives.
It's very difficult to keep up with the pace and swiftness of Congress as they sometimes put together stimulus and bailout initiatives without mayoral or any consultation. These packages, as we indicated to our leadership in Palm Beach, are inside operations. They are presented to us and we do our best to support them even though the spending usually favors the states. And in many instances, badly needed funds somehow donít seem to flow down to our city halls once they are sent nonstop to state capitols. We will monitor the situation and report to our membership as the third stimulus takes shape. Our goal is to demand a city portion of the total for our cities and we will need your help.
No doubt, Washington is in turmoil over the economic crisis in our nation. And the old order of our financial structure which has been propped up and protected by both the Democratic and Republican parties is experiencing a meltdown. And a new order will emerge. Today, our federal government announced they not only will loan banks money; they will move to actually buy portions of our banks.
And the other issue is the lack of both Senator Obama and Senator McCain to give us their specific proposals. The first debate was a sleeper. Jim Lehrer, of PBS, let them drone on. He asked them to talk to each other. They refused. He just sat there.
In the second debate when the candidates did start talking to one another and seemed to want to engage, Tom Brokaw acted like a high school basketball referee with a quick whistle and he impeded the dialogue. The Washington Post on the day of the second debate published five questions from mayors to be asked if they were there. Brokaw was armed with these questions but he refused to use them. Senator McCain did open with a suggested remedy on distressed mortgage holders but there was no follow up and it didnít stick. The second debate in Tennessee, left us like the first debate in Mississippi, both without a clear picture as to what specific economic recovery plans they have to propose for national financial crisis. No doubt, the national financial issue will be the number one agenda item when one of them is our President-elect in less than a month from now.
David Broder, as I have said before, one of the last true journalists left in America, wrote yesterday in his Washington Post column entitled, "Running From Reality."
"Something strange is happening in this strangest of all presidential contests. The longer it goes on, the less we know about what either of these men would do if he were in the Oval Office next year."
Broder writes that they have been asked twice once in Mississippi and in Tennessee last night what their priorities will be and, "It was a stunning rejection of reality, this nation is mired in two wars it does not know how to end. It is struggling to escape the worst economic crisis since the Great Depression. The federal government is staring at record deficits, with no plausible plan for financing the retirement and health care needs of a giant generation of retirees. Our transportation and education systems need help, and we are dependent on other countries for the energy we use. In the face of all this, Obama and McCain are stubbornly repeating promises they made in happier times, if either of them has a clue what to do to help this tottering economy, he is keeping it to himself."
Broder goes on to say that both men have given us "every reason to admire their character."
Today, October 9, the rhetoric from Senator McCain is to force Senator Obama to tell the truth about his association with terrorists and Senator Obama says that Senator McCain is guilty of "erratic behavior." It's as if they don't recognize what's going on on Wall Street or Main Street.
Let's hope the third debate will offer more specifics.
Meantime, hello folks! Back in Washington, we're about to go for a third try on some infrastructure stimulus.
And we have Five Reports from Five Diaz Forums with recommendations and innovations all waiting for one of them once the election is over, the sooner the better.
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