Washington, DC
April 4, 2008

Home Mortgage Crisis/Dodd Breakthrough/Win for Mayors

We commend Senator Chris Dodd for his leadership in pulling together the first coalition of Senate Republicans and Democrats in a long time to confront the present housing crisis.

We also remind ourselves of the leadership of our President Trenton Mayor Doug Palmer who along with others went to Detroit last Fall and called then for federal action and the incredible amount of work that we have done since then on this crisis.

Republican Senators went home over the Easter Break and a typical political observation was offered by Georgia Republican Johnny Isakson who said, “Unless every member of the Senate was in a cave over the two week recess, it’s pretty obvious that gas prices and the housing crisis are the two most important issues facing the American public.”

So once again the American people are crying out for action and they have been doing so for months. But partisanship has reigned in the Senate. Now Republican Isakson urged his Republican colleagues to stop blocking legislation, “You can play that game when it doesn’t matter. But people’s lives, their fortunes, their largest single asset is at stake.”

A breakthrough that seldom happens has finally happened and as U.S.Mayor goes to press, the games are about to begin with a full-fledged debate on the Senate floor.

At issue is assistance and counseling for thousands. Eight thousand foreclosures occur each day. Some cities are hit harder than others. Included in the Senate bill is $4 billion in grants for local governments hard hit by foreclosures and delinquencies. Local governments would use the grants to buy and rehab homes at a discount.

This Senate development will be a first step to meet the needs Mayor Palmer and our mayoral leaders have been calling for since last November. Let us hope relief will come soon since every day there is more bad news for the national economy and our local economies.

The national economic situation, as described by the experts and those responsible for monetary policy, is bleak, to say the least.

Earlier this year, here in our offices, I asked Mr. John Zogby to tell us what is the boiling point for the American people on the price of a gallon of gas. He didn’t blink and said $4.00. This week we had some independent truckers striking with a halt of the movement of their goods due to the cost of gas. Earlier this year when the cost was $3.29 a gallon, President Bush seemed unaware that gas might reach $4.00 a gallon.

The home mortgage crisis, the credit crunch, increased cost of gasoline, increase of jobless benefits, layoffs, and the collapse of Bear Stearns, all have caused dire predictions from people who are expert on the ups and downs of our economy.

There is also some question as to where is President Bush on these issues and simply, where is President Bush? This week former Reagan Chief of Staff Ken Duberstein commented on President Bush’s offstage strategy while Congress is fervently working on a bill to help challenged homeowners. President Bush is in Romania this week delivering his goodbye address to NATO. Said Duberstein, “He’s over there arguing about who should get into NATO and the American people are focused on what’s in their pocketbooks. He has talked about the economy, but it is not viewed as being a satisfactory response. Unfortunately, the lasting image is of not knowing of $4-a-gallon gas.”

Other Bush allies such as NY Congressman Peter King said this week, “When there is a perceived national crisis, it’s important to be the point man.” Sheryl Gay Stolberg wrote a front page article this week comparing President Bush and other Presidents. President Ford pushed his WIN program to combat inflation in 1974 and President Franklin Roosevelt gave his first fireside chat 75 years ago and his connection with his person and policies touched the American people and helped get our people through the Depression.

Some of us remember gas lines back in the 1970s due to the gas shortage. We all had to get in line and wait and wait to fill up our cars. One person was killed at a gas station and there was other violence because of the frustration. President Carter was in Korea and White House Chief Domestic Advisor Stu Eizenstadt called him and told him to come home. He did. Carter was facing reelection. President Bush isn’t. Still many want their President to be more involved and not to appear indifferent. As Mr. Duberstein said, “He has to get back in the conversation again. All the conversation going on now is Obama, Clinton and McCain and people are not talking about: What’s George Bush thinking? What’s George Bush going to do?”

President Bush has been somewhat upbeat about the economic picture even though he did get praise for supporting the stimulus package that will be sending out checks to taxpayers next month in May.

Congressional leaders have been pleading for President Bush to hold a top level bipartisan economic meeting to deal with the current mortgage crisis.

People want their President to be involved when their most valued assets are being challenged. McCain, Obama and Clinton can talk and offer solutions as quick as the all day radio and TV newscasters will spit it out. But they are not our President. We have one President at a time. We have needed him for some time now. There have been lost opportunities for the President to involve us on brownfields, street crime, climate protection. He has gotten by with his aloofness and indifference on some of our key issues. But this one is different. People are hurting. Their savings and retirement are at stake. He needs to focus. Again, people want their President to be on stage now. Congress is finally waking up. They are moving legislation toward him for signature. Let us hope that President Bush will come home soon, both literally and figuratively. We need our President to help us. Nothing surpasses the power of the White House especially when Congress wants to play.

Let’s hope President Bush will respond to those in his own party and other leaders who continue to call for him to be more responsive during this critical time in our economic history.

Today, mayors and cities spend $2 billion of our local money on the Arts. We are number one in arts spending for the entire USA. The 50 states, combined, spend one half our amount. And the big USA spends a paltry $114 million.

Honolulu Mayor Mufi Hannemann took center stage this week along with cinema star, Director and Producer Mr. Robert Redford. This activity is part of our partnership with the American for the Arts. Our friend, Bob Lynch moderated the hearing with Mayor Hannemann, Grammy winner John Legend, Ms. Kerry Washington, star of Ray and Last King of Scotland and Conference Board CEO Jonathan Spector. All told their stories of how the public arts helped change their lives. They are totally committed with their firm belief that our federal government should provide more to our cities.

Mr. Lynch points out the leverage factor we get which makes the Arts a $166 billion industry, and he points out that it is a growth industry, a winner, that has grown 24.6 percent over the past 10 years.

He quoted Republican candidate for President Governor Mike Huckabee who termed the Arts as our “weapon of mass instruction.”

Mayor Hannemann pushed forth our 10-Point Plan priority calling for a Secretary of Culture and Arts in the next Administration.

Mr. Redford got quite personal about his early schooling as a child in lower working class, who in the third grade drew out of boredom and the teachers chastised him for it but it was one teacher who asked him to come up to the front and show the class the drawings. One teacher recognized him rather than put him down. He did that every week and he had a story to tell with his stories. He says he was a problematic child who would be called dumb but the physical and mental part of his drawing helped him and he wonders where he would be now if not for this teacher who encouraged his drawings and storytelling.

Another aspect from the business side came from Grammy Winner Mr. John Legend, a native of Springfield, MA, with a grandmother organist and mother choir director and who had his first role as a singing wise man that went to see Baby Jesus.

Mr. Legend after University of Pennsylvania joined the Boston Consulting Group and his creative talents were encouraged because of the creative culture of the successful consulting group.

Also stressing the creative need in our workforce was Mr. Jonathan Spector, CEO of the Conference Board. He says we are not doing enough with our high schools to have mandatory arts education. Business needs people who are creative and CEOs all agree they need people who can see and think out of the box for our future.

We appreciate Honolulu Mayor Hannemann’s continued leadership on this priority of arts in our cities, stronger today than ever.

Our “Dear Colleague” letters are gaining steam and gathering signatures of endorsement in the Congress. We are continuing to get statements of confirmation from Congressional leaders for appropriations this year for the Energy Block Grant passed last year.

We are saddened at the sudden passing of Mr. Larry Tate. Larry has served our staff in a dutiful and exemplary manner within our outstanding Health Department since 1994. We are thankful for his life contribution to our health efforts. Please see article on page 12 of this issue.

The NYTimes/CBS poll today reports Americans are more dissatisfied with our nation’s direction than ever before since the poll started.

A whopping 81 percent believe that “things have pretty seriously gotten off on the wrong track.” That’s up from 69 percent a year ago and 35 percent in 2002.

The Iraq War is a factor, but authors of the poll indicate the new turn for the worse with our economy as we seemed to have slipped into a recession is even a larger reason for the concern.

Yes, Mr. President, bring it on home. Congress is waking up. We need action. Mayor Palmer has a 10-Point Plan. It will help. Is there anyone out there? We can’t wait for a new President. Eight more months of this must be stopped and stopped soon. It’s time for Congress and the President to act and protect the economic health of our nation. McCain, Obama, Clinton .... enough of them for a while, please. The people want our President and our Congress to come together as never before. Too much is at stake. The mayors will continue to bring our solutions forward but we must have action now by Congress and the White House across the board now.