By Larry Jones
March 7, 2011

Edmond (OK) Mayor Patrice Douglas told members of the House Subcommittee on Technology, Information Policy, Intergovernmental Relations and Procurement Reform that mayors wholeheartedly support the Unfunded Mandate Reform Act of 1995, but urged that the legislation be tightened to further restrict unfunded mandates during a February 15 Congressional hearing on unfunded mandates and regulatory outreach. Although the legislation has helped notify Members of Congress when a bill or proposed rule includes an unfunded mandate, it has done very little to prevent Congress and the Administration from imposing new mandates on state and local governments.

Commenting on the impact of unfunded mandates on local governments, Douglas told members of the hearing panel, chaired by her Congressman James Lankford (OK), "Each time we face an unfunded mandate, we are forced to choose between raising taxes, cutting services or delaying needed infrastructure projects. Each time we get an unfunded mandate, it requires locally-elected officials to disregard the will of our voters to meet the standards imposed by Congress."

Douglas provided numerous examples of how unfunded federal mandates impact Edmond. These included:

• Stormwater Quality Regulations – issued by the U.S. Environmental Protection Agency (EPA) to address the quality of stormwater runoff within the city’s boundaries. The regulations require the city to provide education and outreach programs, allow public participation, and put in place several management programs to address water quality. Extensive record keeping and annual compliance reports are required which could cost the city approximately $400,000 a year.

• Health Care Reform – the city currently provides health insurance coverage for its employees and pays 75 percent of dependent coverage. After the passage of health care reform legislation, the city is expecting a 19.81 percent ($600,000) increase in the cost of health insurance, with 14.51 percent directly attributable to requirements under the new health care act.

• SEC Municipal Advisor Proposed Rules – under the Wall Street Reform and Consumer Protection Act, all municipal advisors who provide advice to municipal entities involved in the issuance of municipal securities will be required to register. As drafted, the proposed rule would not merely apply stringent rules and reporting requirements to municipal advisors, but also to volunteer members of local board or other citizen volunteers. Douglas pointed out that, "Many states and cities already have statutory provisions concerning the fiduciary responsibility of volunteer board members of their authorities. In our view the proposed rule would only serve to micro-manage local governments and impose duplicative, redundant regulatory burdens as an answer to unsubstantiated and undefined issues."

Citing the Conference of Mayors 2011 Metro Agenda, Douglas told members of the hearing panel that unfunded mandates is a huge concern for cities across the nation. In the document, cities urge support for legislation that would strengthen the federal-local partnership and further restrict the ability of Congress and the Administration to impose new unfunded federal mandates on state and local governments. She said, "We also ask Congress and the Administration to determine the cost of current unfunded mandates and to provide a coordinated and national strategy regarding the prioritization and implementation of those mandates given the monetary constraints of local governments."