Washington, DC
January 7, 2005

Welcome to our 73rd Washington Winter Meeting

Mayors are in Washington this week for our Winter Meeting as President George W. Bush takes the oath for the second time to begin his second term. And a new Congress is now in place with new and old members as they face critical issues of international suffering caused from the Indian Ocean Tsunami, our nation at war in Iraq — and, here at home, vast challenges on the economic front.

The nation's mayors gather on the first day honoring the memory, the work and the legacy of a great political and spiritual leader of our time, the Reverend Martin Luther King, Jr., shot down and murdered in his prime in 1968. Throughout Dr. King's life, The United States Conference of Mayors stood beside him in our struggle for civil rights, voting rights and human rights. Following his death we have supported Mrs. King and the Atlanta movement to continue his legacy through political action affecting the disenfranchised and disadvantaged citizens in urban, suburban and rural America.

Tsunami Deaths and Devastation

The nation's mayors gather too — on the solemn occasion of the deaths of over 140,000 caused by the Indian Ocean tsunami on December 26. Mayors, of course, pay their respects and express sympathy for the unparalleled devastation, the loss of life and the human suffering that will remain for generations to come. Mayors also will be working within their own cities to help with relief efforts and mayors are seeking some direction and guidance from our own national government and other national and international organizations how they may direct the energy of millions of good-hearted and generous Americans in our own cities who want to help our global brothers and sisters and children of the Indian Ocean region.

Our Troops in Iraq

Also on the international front, mayors are aware and feel deeply for their own close relatives and other residents who have soldiers in harm's way engaged in our war in Iraq. The Pentagon indicates that 1,340 Americans have been killed in our war. And our mayors, the closest of all politicians to our people, are affected because mayors are close to their people, living with them every day and night — in happiness and pain. And so we support our men and women in Iraq — totally — and we hope and pray the elections in Iraq in February, next month, will be a success and democracy will finally prevail in Iraq.

Turbulence on The Domestic Front/OMB Budget Cuts/Hill Trashing CDBG

On the domestic front, mayors are focused on two areas of activity.

First, reports of budget cuts slashing our key, sound federal investments abound in Washington. While the Office of Management and Budget has not released President Bush's budget proposals to Congress, the leaks of information are cause for concern and will require a united front from all mayors to work within Congress to correct any misguided decisions that have been given to the President concerning our key priority initiatives. We are watching carefully the recommended amounts and structural changes of the Community Development Block Grant program at HUD. Since we worked with Presidents Nixon and Ford and every President since enactment to establish the CDBG federal/local partnership, we can prove that it is an economically sound investment that has improved the infrastructure of our cities and it has economically benefited citizens in urban, suburban and rural America.

Over the past year, in some leadership meetings on Capital Hill, staff and members have trashed our CDBG program saying it is wasteful and worthless. This is most unfortunate. We are fortunate to have key Republican House members such as Representative Mike Turner (OH) who will stand up for us. We are also fortunate to have Ohio Senator George Voinovich and Indiana Senator Dick Lugar who are strong supporters of CDBG. All three of these members were mayors and they know how vital the CDBG program is to our cities. So we must seek counsel and guidance from them and other strong allies in the House and Senate. We can make the case. We can prevail. We can win — if we all stand together united in this bipartisan cause to continue CDBG, the flagship of our federal/city investment partnerships.

There are other key sound federal investments that are up for recommended reductions and abolishment.

Over the past few months, Conference President Don Plusquellic has used a number of forums to sound the clarion call over his concern about what Washington decisions might do to key priority investment partnerships as both Congress and the President's Office of Management and Budget look for money to finance international activities and reduce our large deficit.

Tax Reform/Losses and Opportunities

As budget recommendations are leaked, the proposed changes in our federal tax code have manifested through trial balloons that have been released through public hints and private leaks here in Washington every week since the November election.

President Bush has stated to the American people he will use his political capital gained from his election to reform our tax system and to save the Social Security System.

On the tax reform agenda, business leaders joined Conference President Don Plusquellic during our Council for The New American City Second Economic Summit on December 9 to announce a coalition of mayors and business leaders to resist changes in the tax code that would hamper the economic growth of our 318 metro economies that are indeed the metro economic engines that drive our nation's economy.

Over the past few years, the Conference of Mayors has advocated the need to use the tax code to produce incentives for mayors and business leaders to come together producing thriving business entities within our metro areas that have produced jobs and successful business activity.

At our December 9 Summit, National Urban League President Marc Morial addressed the Washington press conference with the message that he looks at the impending tax reform proposals as an opportunity to provide new tools to help form new city/business partnerships throughout America. Mayor Plusquellic and business leaders echoed Mr. Morial's position.

As we won the brownfields tax credit, we can win others. Our tax reform policy adopted by Democratic and Republican mayors contains a litany of tax reform proposals that would be, if enacted, most beneficial to the economy of our cities and our nation. Together, the business community and mayors will come together to coalesce around key proposed tax initiatives that would be most helpful to the economic challenges we still face today.

As the mayors and business leaders see gains and play offense, they are also most mindful of tax laws now in place which help make our metro economies strong that are now being questioned. At issue are issues such as the deductibility of state and local taxes paid as well as the interest paid on home mortgages.

And last but not least is our old friend, the Social Security program. In the early days, even before my time (if you can believe it!) mayors worked with a President named Franklin Delano Roosevelt to establish the Social Security System. Through the decades it has become a part of the American life, folklore, and culture. It is as American as the automobile, the movies, the television, hot dogs, rock and roll, cracker jacks, apple pie, Marilyn Monroe, Frank Sinatra and Ella Fitzgerald. It is a political icon and many have said it is the third rail (touch it and you die) of American politics or maybe the sacred cow — look at it but don-t think of killing it for a steak or a Big Mac or even better — chili.

We have seen politicians without the guts and courage of President Bush afraid to go there. But he has spoken and he has told the American people he will use the awesome power of the Presidency to restructure the Social Security system. President Bush is speaking to the younger workers advocating the opportunity to allow them to divert a portion of their Social Security taxes to personal investment accounts. Some say the older generation will resist the President on this proposition, but the fact is, many older persons paying Social Security taxes don-t feel or see themselves as older persons as they did just two decades ago, because 100 years of life is far more common nowadays. But we could have a generational war on this issue. Today, as President Bush goes forward, Republican members are all over the playing field on this issue. There is no consensus and presently, confusion is rampant.

The U.S. Conference of Mayors today has the policy position of supporting the present Social Security System as is, but mayors have to ask themselves where are we on this issue in 2005. Mayors face older citizens every day in senior citizens places of gathering, at church and in other places where senior citizens are so active in their cities. And one place and time that the seniors are most active is Election Day and at the ballot box or the voting machine.

While the Winter Meeting this week is not the time and place for us to take a position of the restructuring of the Social Security System, it is naive and politically irresponsible on my part as your Executive Director not to raise this issue with our Executive Committee for the purpose of guidance. As you leave Washington, we are faced as an organization to be pulled back and forth as Congress and The White House engage in a historical debate and political struggle of this very central piece of federal involvement that affects the American people. This issue will be debated not only in the House and Senate here in Washington, but it will also be debated in the houses and homes at breakfast, lunch, dinner and supper by all generations, in the neighborhood bars and establishments as well as talk radio and in conversations on our streets and neighborhoods of our cities. So we must be aware of these proposed changes and decide if we wade in or back off and not engage. But no matter what we do, change is coming and we do have to be aware of those changes and how it affects the people you serve, your constituents — and last but not least — your voters.

Welcome to Washington

Conference President Don Plusquellic has worked hard along with me and Conference staff to produce this 73rd Winter Meeting with the hope that it will be meaningful, productive and enjoyable for all mayoral delegates attending. Inaugural time in Washington, D.C., which comes every four years, continues to signify just how lucky we are to have and to hold this significant event under the great Democracy we are so fortunate to live in. We anticipate President Bush's inaugural address, so important to our history and our future. We look forward to the parades and who is wearing what and who is going to which Inaugural ball.

And as the song goes, "After The Ball is Over" — we know there is serious work ahead of us.

President Plusquellic will continue to lead us in our bipartisan way — which is so vital to our success. New York Mayor Fiorella LaGuardia, a founder of The Conference of Mayors, said it years ago — there is no partisan way to fill a pothole. Our Past President Hempstead Mayor James A. Garner said last year when the partisan flames started to flicker at our Key West Leadership Meeting, "Lets calm down and understand something. The United States Conference of Mayors is our political church and we have all come to worship." In other words, let us all try to leave our partisan guns at the door and all sit down to come to a consensus on the important challenges that we face, just as those mayors did when they were faced with similar challenges over our 73-year history. The bipartisan way is our only way to success for our cities and our people.

If I can be of any assistance to you while you are in Washington or after you return home, please let me know. My staff and I are honored to be at your and in your service.

Happy New Year and welcome to the 73rd Washington Winter Meeting.