By Stefanie Sorensen, USCM Intern
February 6, 2006

Federal Reserve Board Governor Mark W. Olson pledged the strong support of the Federal Reserve System for the Conference of Mayors National Dollar Wi$e campaign at the 74th annual Winter Meeting, January 25. Olson spoke before the Conference’s Council for the New American City, which sponsors the Dollar Wi$e campaign. The Federal Reserve Board was instrumental in helping the Council organize and launch Dollar Wi$e in 2004.

Seventy-three cities are currently participating in Dollar Wi$e, which is starting its third year of operation. The campaign focuses on education, credit card and debt management, savings, and homeownership. With the participation of mayors, Dollar Wi$e helps create opportunities for financial education within their cities.

“Financial difficulty occurs in all ages of life, and Dollar Wi$e is for all types of people,” Olson said. He added that the Federal Reserve “needs to be a partner” with the Dollar Wi$e campaign as a way to “utilize products and provide the opportunity to improve life and seek the American dream.”

Acting Chair Gary Mayor Scott L. King said, “The Fed’s support of our campaign has been absolutely essential to the progress we have made. I want to thank Governor Olson and the Federal Reserve Board for their continued support.”

King’s and Olson’s remarks started the conversation for the 2006 agenda for the Council. Jimmie Williams, First Vice President of Legislative Affairs for Countrywide Financial, discussed Countrywide’s participation in the Dollar Wi$e Campaign. Countrywide has donated $1 million over the next five years to be distributed in support of the Council and as bi-annual capacity grants. Williams discussed the first round of grants that were awarded at this conference.

Rebecca Stiehl, President of the InCharge Education Foundation added, “InCharge wants to help and is willing to partner with any mayor. We are willing to come into your city with a train-the-trainer program and help your city start a Dollar Wi$e Campaign.”

Chairman of the Mortgage Bankers Association, Regina Lowrie, encouraged the Council to not only maintain the Dollar Wi$e Campaign but to expand it as well. Lowrie also requested a heightened FBI initiative to help combat mortgage fraud. On the issue of tax reform, Lowrie discussed the benefits of preserving mortgage interest deduction and state and local tax deductions.

The Council also discussed commercial and retail development. Cynthia Stewart, Director of State and Local Relations for the International Council of Shopping Centers, said, “Where do the retailers go? They follow housetops.” Stewart encouraged the Council to continue to promote homeownership and to assist in commercial development in all American cities.

The Ambassadors for Cities program is another expanding initiative in 2006. By linking local realtors with city hall, the program helps promote homeownership and affordable housing opportunities within cities. Amy Eichhorst, a representative from the National Association of Realtors, said, “The Ambassadors for cities program was a success in 2005 by assisting first time homebuyers in 11 cities. In 2006, we want this program to expand to six to eight more cities across the country.”

The Council also released the annual U.S. Metro Economies: GMP—The Engines of America’s Growth report for 2004-2005. Jim Diffley, Senior Vice President for Regional Economies at Global Insight, Inc., reported 361 metro areas were responsible for 86.3 percent of U.S. gross domestic product. The report also showed 86.6 percent of new employment creation took place in metro areas, adding over 1.5 million jobs. Diffley was also proud to update the council that 244 metro areas had regained lost jobs in 2005 with a forecast to continue to increase.

The Council for the New American City will meet again at the Annual Meeting in Las Vegas, June 2-6, 2006. For more information about The Council or the metro economies report, please refer to the website at usmayors.org