By Larry Jones
March 22, 2010

Former Conference President Trenton (NJ) Mayor Douglas H. Palmer testified at a March 17 hearing sponsored by the Congressional Black Caucus (CBC) entitled "Out of Work But Not Out of Hope: Addressing the Crisis of the Chronically Unemployed." He thanked Chairwoman Barbara Lee (CA) and members of the Caucus for focusing attention on the nation’s unemployment problem and assured them that the Conference would work with them to urge Congress to "pass truly comprehensive jobs legislation – now." Palmer told members of the Caucus that it is critical for Congress to move quickly to pass the Local Jobs for America Act; to approve legislation that continues funding for the Energy Efficiency and Conservation Block Grant program to create green jobs; and enact legislation that provides more funds for summer youth jobs.

At the outset, Palmer explained that the recession is not over for Main Street America and that cities of all sizes across the nation are facing budget shortfalls and are being forced to make very unpopular decisions to keep their budgets in balance, including layoffs, furloughs, service reductions and fee increases.

Palmer also pointed out that the unemployed are disproportionately concentrated in metro areas. For example, he said in Georgia, 62 percent of the state’s unemployed reside in the Atlanta and Augusta metro areas; in Texas, the Dallas, Houston, San Antonio, and Austin metro areas account for 65 percent of the unemployed; and in California, the Los Angeles, Riverside, San Francisco metro areas account for 57 percent of the unemployed.

Although the unemployed are concentrated in metro areas, Palmer reminded everyone that metro areas are also the engines driving economic growth. He explained that, "Nearly 86 percent of all jobs, and 90 percent of the nation’s labor income and gross domestic product are generated in the nation’s 363 metro areas."

To address high levels of unemployment and budget shortfalls at the local level, Palmer said Congress must first "help us stop the bleeding." In other words help local governments avoid further job loss because continued layoffs will undermine job creation efforts aimed at reversing rising unemployment. Palmer praised House Education and Labor Committee Chairman George Miller for introducing the Local Jobs for America Act, H.R. 4812, which will provide direct assistance to local governments to help save existing jobs and create new ones to put unemployed people back to work.

He explained that the legislation would use the highly successful Community Development Block Grant mechanism, but target resources to where they are most needed. Funds would be distributed directly to local areas with a population of 50,000 or more based on the numbers of unemployed, persons living in poverty and population. Local governments planning to layoff critical workers could use funds "to save the jobs of police officers, firefighters, public works employees, library workers, day care providers and so much more," Palmer said. By distributing funds directly to local governments, he said funds will not get stuck in state bureaucracy, which will help save and create jobs now.

Second, Palmer said the Conference of Mayors is urging Congress "to help us build a new, green economy that provides real job opportunities for both high'skilled workers and the chronically unemployed." He cited the Energy Efficiency and Conservation Block Grant as a good example of the type of legislation that is helping to create green jobs. But he pointed out that the Energy Department must be pushed to move faster in getting the funds to local governments. He also said funding for the program must not be allowed to lapse as proposed in the Administration’s budget. "Speaker Pelosi has pledged her support for multi-year funding for this job creating program, and we ask that the CBC work with her on this priority," he said.

Third, Palmer pointed out that the Summer of 2010 is expected to be very difficult for young people seeking employment opportunities. He said the Conference of Mayors is urging Congress to do more to help vulnerable youth gain access to the job market. He added, "Congress should immediately provide significant funding for the Summer Jobs program so cities, counties and the private sector can plan for job placements."