By Brian Gould, USCM Public Affairs Intern
February 3, 2003

The National League of Cities has unveiled an economic stimulus plan that calls for job creation, addressing state budget problems, and boosting economic growth. NLC proposed a three-part plan that would invest nearly $150 billion dollars into a stimulus plan focused on communities. The first component is to increase consumer spending by investing $75 billion in a tax rebate program and extending unemployment benefits which will increase job creation.

The second element is to relieve the burden on state budgets by investing $50 billion into schools, homeland security, Medicare, highways and transportation. The third part of the plan is to invest in current and future public infrastructure by providing $20 billion in federal aid through block grants to local communities.

NLC President New Haven (CT) John DeStefano Jr. announced the plan at the National Press Club January 21, along with NLC Vice President Washington (DC) Mayor Anthony A. Williams and NLC Immediate Past President Minnetonka (MT) Mayor Karen J. Anderson. DeStefano said America needs a realistic economic stimulus package now. DeStefano and the other mayors said that cities across America are facing a severe budget crisis.

Anderson said that 45 of the 50 states in our country are currently in a budget deficit, which is placing a tremendous impact on local budgets. Along with a weak economy and the new unfunded mandate of homeland security, rising healthcare cost have forced city officials to look for help from the federal government, according to Anderson. DeStefano said, "What we are seeing is a financial crisis that is unparalleled in our lifetime". DeStefano explained the result is that America's cities and towns are less safe, less able to compete and less able to survive in this economy.

Anderson says the result of current economic conditions will force a cut in city services, which makes providing homeland security an extremely difficult task. Currently, cities must provide security on their own, however hopes are that whichever economic stimulus package is considered will involve state and local governments as partners.

Williams estimated that the District of Columbia has currently spent more than $25 million to provide homeland security since 9/11 and the story is the same all across America as unemployment is up, crime is up, and the economy continues to slow. Williams said that state deficits are forcing cities to do more with less and billions of dollars will be needed to provide adequate security. NLC hopes are that cities can form a partnership with Congress to establish an economic stimulus plan that will benefit all Americans.