May 25, 2009

Over the past two weeks we have been dealing with a number of issues that will require mayoral attention in the days and weeks ahead of us. These issues will, no doubt, draw discussion, decisions and bipartisan political action out at the 77th Annual Meeting in Providence, June 12 – 15.

President Obama’s budget and HUD Secretary Shaun Donovan are calling for a change in the Community Development Block Grant formula established at inception in 1974 and is used today to determine how much money each city receives in CDBG funds.

In recent meetings with city representatives of both large and small cities, all above the 50,000 population cutoff, the question is raised as to why we must change the formula.

The answer that comes back is that the nation’s demographics have changed since 1974 when the current formula was signed into law. Our current policy calls for a strong endorsement of the current formula. There have been some mayors who have raised the issue of CDBG formula change. Proposed language contained in resolutions, to be considered at our 77th Annual Meeting in Providence next month, on this subject cautions the Obama Administration that if they do propose a formula change, the existing recipients must be held harmless.

Any time a law is changed and money is withdrawn from a city, especially in these most difficult economic times, there is political turbulence and sometimes heated resistance.

No doubt, Secretary Donovan will have the opportunity to make his case to Congress and to the nation’s mayors. Mayors are eager to hear from him and the rationale and explanation will help all of us as we go forward together to continue our strong support of the CDBG program.

Over the past few weeks the House, Energy and Commerce Committee have been working nonstop to report out climate change cap and trade legislation. Proceeds from auction assets could potentially provide as much as $10 billion annually directly to the 50 states. There is no language requiring any of these funds to go directly to cities of any size. Today, we have over 950 cities signed on to our U.S. Conference of Mayors Climate Protection Agreement. Our cities are already involved and we need federal assistance as we lead millions of our people to engage in this issue.

Our position is that at least $2 billion (20 percent of the $10 billion) should be sent directly to our cities and funded under the distribution system of the current energy block grant law. This EEBG program was authorized and approved in December 2007.

Senator Boxer and her Senate colleagues included the current energy block grant distribution system in the climate bill that was passed by the Senate in 2008. We commend her for her leadership, and even more we commend her for insisting that cities must directly benefit from these federal resources.

We were also pleased that the same distribution system for energy block grants was used when Congress and President Obama approved the $3.1 billion contained in the Recovery Bill (ARRA) this year.

The current House Cap and Trade Bill as reported out of the Committee does not have direct funding to cities. We will work with House leaders and Ways and Means Chairman Charlie Rangel to rectify the situation. We will also reach out to our good friend, House Speaker Nancy Pelosi.

We are also meeting with Senate leaders on this issue. We are encouraged by Senator Boxer’s position to provide the auctioned proceeds directly to cities. We must educate the Senate just how important mayors, cities, and counties are to the goal of this nation as it relates to climate.

Aside from the funds that will be effectively utilized and quantified in our cities, the climate change issue is about human behavior. All the scientists in the world are saying we must change human behavior. The mayors can lead the way on this issue. We are doing it now and we can do more to help nation reach our goals sooner if we have the resources to be used a catalyst for public/private partnerships and people now living in metropolitan areas which make up 85 percent of the nation’s population.

We, no doubt, are pleased the House Committee is reporting out this bill – but there is a serious step backward as the amount of direct funding to cities is zero as we give the states a whopping $10 billion to spend.

We will use every effort to forge a bipartisan message that the cap and trade legislation as it moves forward must be amended to ensure that our cities receive direct funds to help our national economic climate change and national security goals.

President Obama’s proposed 2010 budget would not contain funds to continue the energy block grants. It is important to understand that before the stimulus ARRA program was passed, Congress had already passed our energy block grant legislation. Hence, we were arguing that we needed energy block grants before the stimulus program was passed and our position is that the energy block grants should receive regular appropriation funds with or without stimulus funds.

Conference President Miami Mayor Manny Diaz has a letter in the field now asking all mayors to urge Congress to include in its regular appropriation process adequate funding to continue the energy block grants as an ongoing federal program. We urge you to sign on to that letter.

As we have the CDBG program at HUD, we fought and won the energy block grant program at DOE even before President Bush left town. Our position is that the federal partnership to have the federally funded initiative from the Federal Department of Energy continued.

We are finally at the beginning of a major and active force where hundreds of cities throughout the nation are moving to protect our planet, create green jobs and make us more secure with energy independence.

Our energy block monies must continue. Sign on to Mayor Diaz’s letter. We need your help. Together, we are a mighty force. Together, we can and will use our efforts to strengthen the partnership with cities and the Department of Energy through our energy block grant funds sent directly to our cities.

Soon we will all come together for the hottest and “most real” meeting that takes place in the United States of America…the Annual Meeting of The U.S. Conference of Mayors!

Providence, Rhode Island is a destination city. To those of you who have never been, you are going to be surprised. Providence Mayor David Cicilline has put together activities that you won’t forget. We’ve done Las Vegas in 2006, Los Angeles in 2007, Miami in 2008 – and now Providence, a jewel of a city, in 2009!

As Mayor Cicilline has a meaningful and enjoyable meeting waiting for you in his city, Conference President Manny Diaz has helped us deliver the Obama Administration to you from Washington, DC to Providence, RI.

We are pleased to have Vice President Biden with us. He has been a friend of all mayors and has worked closely with mayors as we all are in partnership toward the successful implementation of the Recovery Act to create 3 million jobs in America by the end of 2010. Vice President Biden has worked hard all his career to be a leader and strong supporter of public safety legislation that has helped us reduce crime in our cities. White House Senior Advisor Valerie Jarrett as well as Cabinet Officers have committed to be with us.

In addition, we will have our Federal Resource Center where mayors may come and meet and learn from federal agency representatives as to how our federal government partner with mayors and cities to make our nation stronger and better for our people. We have the Obama Administration bringing itself to Providence… all for the mayors of America.

It is time now for you to register for our 77th. Contact Carol Edwards, Director of Conferences and Conventions, at 202-861-6747, and get registered.

I look forward to seeing you soon in Providence!