By Larry Jones
February 14, 2011

Conference of Mayors 2nd Vice President Philadelphia Mayor Michael A. Nutter testified in Washington (DC) at a February 2 House Democratic Steering and Policy Committee hearing on jobs and the economy. He told members of the hearing panel that, “Economic recovery will require partnership between the federal government and cities.” To attract new businesses and jobs he explained that local leaders must provide for a safe environment and reduce the cost of doing business in their cities. And he said the federal government must continue to support large scale critical projects at the local level.

Since his election to office three years ago, Nutter said his administration has made significant strides towards making the city a safer place. “Thanks to good policing and improved management,” he said, homicides have been reduced by 22 percent. And the city is making progress in reducing high business taxes.

Two years, ago acknowledging the devastating impact that the national recession had on local communities (record high levels of unemployment, home foreclosures and budget shortfalls), Congress approved legislation to promote economic recovery. Nutter expressed appreciation for support provided to state and local governments under the American Recovery and Reinvestment Act. He told members of the hearing panel, which included Democratic Leader Nancy Pelosi (CA), and Steering Committee Co-Chairs George Miller (CA) and Rosa DeLauro (CT), that Philadelphia aggressively pursued these funds. Grants have been effectively used to help the citizens of Philadelphia and achieve their intended purpose.

For example, he explained that a competitive grant received from the Department of Energy “has provided (1) weatherization for thousands of homes for low-income and working class residents; (2) funds to build a new hotel near the university of Pennsylvania and make it 27 percent more energy efficient (reducing its operating costs); and (3) money for a historic renovation in a undervalued part of Center City. Energy funds will make that building 26 percent more energy efficient.”

He also mentioned that the city has used Neighborhood Stabilization funds to rehab over 200 housing units that were in foreclosure. “This has created jobs for dozens of construction workers-particularly minority and women contractors,” he said. Also Community Development Block Grant [CDBG] funds have been used to upgrade two senior citizen residences and provide essential home repairs for 168 low-income homeowners. And the city received $3 million which was used to help finance a mixed-use development project, redevelopment of historic Medical College of Pennsylvania campus and a meat manufacturer. Further, the city has used Recover Zone Bonds to help finance two flexible-use buildings, which when completed will house companies with approximately 300 jobs.

Nutter said that while local governments are balancing their budgets and being good stewards with public funds, “We need you to continue partnering with us by providing much-needed funding…for large projects that cannot be financed at the local level.” He cited three areas of need:

1) Community Development Block Grants – The city relies heavily on CDBG funding for housing and economic development. For every million received under the program, the city estimates that the program produces between 50 and 200 construction jobs and approximately ten fulltime jobs.

2) Infrastructure – Pointing out the critical role that the local infrastructure plays in global competition, Nutter told members of the panel “Philadelphia cannot compete with cities in China or in Europe if our water pipes are breaking and our port is not state-of-the art. The federal government must help pay for infrastructure investment in cities. And the jobs that this creates are solid, middle-class jobs.”

3) Mass Transit – Noting that Philadelphia once had a world-class transit system, Nutter explained that many cities around the world have surpassed it due to lack of federal investment. He said the current system is “falling apart and needs to be expanded.”