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Conference Leaders Adopt a Blueprint for Economic Stimulus

By Larry Jones
January 20, 2003


Conference President Boston Mayor Thomas M. Menino met in Washington on January 16 with the three top officers and other Conference leaders to discuss federal support for cities as the President and Congress prepare to debate what should be included in an economic stimulus and job creating package. During the meeting, Mayor Menino and other leaders expressed concerns about the lack of federal support for local governments in the area homeland security at a time when they have been called upon to do significantly more since the September 11, 2001 terrorists attacks. With the nation facing the threat of war and a sluggish economy, Mayor Menino said "unless our homeland is secure, we will never be able to fully achieve economic security."

In light of the circumstances, Mayor Menino and other Conference leaders agreed on several recommendations that will be presented to the Conference membership during the Winter Meeting in Washington this week. The recommendations call for additional federal support in three areas: 1) homeland security, 2) economic security and 3) fiscal relief for states.

The blueprint also urges that federal aid be provided directly to local governments to support first responders engaged in defending the homeland; that changes be adopted in the tax code to help stimulate long-term economic growth by providing homeownership tax credits, brownfield redevelopment tax credits and earned income tax credits; that increased support be provided for job creation by accelerating transportation funding, increasing investments in housing and providing general assistance to local governments; and that fiscal relief be provided to states, particularly for Medicaid and education mandates. Without this support, many states, which are already in the middle of a fiscal crisis, will be forced to significantly reduce aid to local governments.