URBAN ECONOMIC POLICY COMMITTEE

URGING SUPPORT FOR THE LOCAL GOVERNMENT ECONOMIC EMPOWERMENT ACT TO PROVIDE INTEREST-FREE LOANS FOR MUNICIPAL INFRASTRUCTURE PROJECTS

WHEREAS, the General Accounting Office found in a recent survey that state and local governments are in need of $112 billion to repair public schools, and in a later, more comprehensive study conducted by the American Society of Civil Engineers, it was found that a total of $1.8 trillion was needed to address the infrastructure needs of all municipalities and schools (including $70 billion for new schools); and

WHEREAS, state and local governments and school districts have a substantial need to undertake capital projects to build and/or improve existing schools, roads, bridges, water and sewer systems, waste disposal facilities, public housing units, public buildings and environmental improvements; and

WHEREAS, the State and Local Government Empowerment Act has been introduced in Congress to make available $72 billion each year for five years to provide interest-free loans to state and local governments for the exclusive purpose of building and repairing their respective infrastructure; and

WHEREAS, under the proposed legislation the Federal Reserve would be directed to create $72 billion annually and an administrator would be appointed by Congress to distribute the interest-free loans to cities, counties, states and school districts based on the formula in the bill; and

WHEREAS, the amount of the interest-free loans available to each state and local government would be based on population, while the amount available for school districts would be based on school enrollments;

NOW, THEREFORE, BE IT RESOLVED that The United States Conference of mayors reaffirms its support for interest- free loans for municipalities and urges all members of Congress to cosponsor and work for the immediate enactment of the State and Local Government Economic Empowerment Act.