Washington, DC
May 23, 2003

Cities and the Shaft

Once again, the Congress of the United States has allowed a few members of Congress to thwart the will of many by refusing to approve the $4 billion city and county portion of the $20 billion state/county/city fiscal relief package that was approved by the Senate as a part of the President's tax bill. The anti-city and county members did not reduce the $20 billion package for fiscal relief. They just said the cities and counties don't need it — and voted to give it all to the states. It's one thing for Congress to deny us funds because of the deficit situation but it's quite another to say we're going to send $20 billion to our states, but you — mayors and counties — don't need it unless your governor decides you need it.

Throughout America, cities are being hit a double whammy — rising costs because of homeland security and less revenues as a result of the economic downturn. And then a triple whammy comes to the cities and counties due to the budget cuts being pushed down by state governments as legislatures decide what is best for our cities.

The nation's mayors throughout this year's economic crisis have been most responsible as they articulated and proposed reasonable requests for our states, counties and cities from our national treasury through their members of Congress. We send the taxpayers- money to Washington — lots of it. And when we are fair and reasonable by asking our Congress and agreeing that our states should get $16 billion and cities and counties should get $4 billion — less than 25 percent of the total amount coming to us — we are given the shaft.

And as U.S. Mayor goes to press, we regret to inform you that our hard fought funds for fiscal relief have been taken from us in the inside political machinations of a Conference Committee. These members don't believe that cities are taking hard budget hits due to more and more national homeland security federal mandates being handed down by the federal government to protect us in the national war against terrorism. Mandates come, alerts come, state budget cuts come, less revenues come due to a loss in travel and tourism, but the federal government refuses to respond to our local/metro public economies which, along with local businesses, drive the national economy.

Until the federal government accepts the fact that our local/metro economies drive the national economy, the nation's economic song will be "slip sliding away." The job loss statistics are there. Everyone is being so nice about it — but sooner or later all the rhetoric and denial won't hold the political tide that will turn against those who don't understand what the loss of a job does to all Americans — working middle class families, single working class, older Americans, fixed income people and the disadvantaged. This is America — all races, all religions and all — above all — consumers. It is as Senator John McCain has said — the middle income Americans are the consumers that spend their money on cars, consumer goods and leisure and business activities.

And so the economic security campaign launched by our President Boston Mayor Thomas M. Menino and our mayors this past January ends with all the fiscal relief going to the states and not one red cent going to the cities and counties of the nation. Some say the states will be fair and take care of us. Those people ignore history and they are blind to what most every major newspaper is reporting about what the states are doing to us now. And even if a Governor wanted to invest in metro economies, most states are broke and they, too, are hampered by Congressional federal mandates that have been pushed down upon them by a deficit-crazed Congress that still does not understand the need to provide sound federal investments that will help our metro economic engines drive our national economy and keep our national economy strong.

Mayors and Business — Public CEOs and Private CEOs

As a small crowd in Congress sticks it to us in a most callous way, there is another crowd that understands that smart investments and partnerships with mayors, public CEOs, is the way to go for growth. That crowd is the business community — big business and small business. Over the past five years with the creation and growth of our Mayors Business Council, we have expanded our relations and partnerships with the men and women who are out there working to grow their businesses and in turn, strengthen and grow our metro economies. Business leaders know mayors. They live, sleep, work and eat in our metro areas. And nowhere have we been more welcomed and sought after as we were at the Annual Convention of the International Council of Shopping Centers this past week in Las Vegas. Twenty'six thousand business leaders, twenty-four thousand USA business men and women joined another two thousand international entrepreneurs as mayors from every region were featured on stage at one time for a glittering introduction, followed by an honored lunch and roundtable discussions on bringing their businesses into our cities. We are most proud of our partnership with the ICSC and are most appreciative of Michael Kercheval and his team for making our participation in this significant business meeting most productive and indeed lucrative to metro economies.

We must continue to be joined at the hip with big business and small business. We have no choice. The role of the mayor has changed dramatically and it has also changed the political culture of The U.S. Conference of Mayors. We will continue as we compete with other cities from across the globe. We will continue to successfully market our cities to national and worldwide markets. Smart mayors are becoming smarter in recognizing what smart business leaders can do as they make smart investments and lots of money for their business and themselves, which produces more money for our city budgets, our working citizens and our metropolitan economies which, as I have said before, drives the national economy. Duh? You have to wonder if the federal government will ever get it. Meantime, we know that mayors and the business leaders do get it. And we will continue to position our organization to provide more opportunities for the mayors — the public CEOs — and the business leaders — the private CEOs — to come together, to work together and to grow our local economies together.

Marc Morial — National Urban League President and CEO

We congratulate former Mayor Marc Morial, the 59th President of The U.S. Conference of Mayors on his being chosen in a nationwide search to be the President and CEO of the National Urban League.

His energy and leadership skills as the President of our organization served us well during the national crisis and tragedy of 9/11. He was the leader we all needed at that time and we will never forget how he summoned us to the Safety and Security Summit here in Washington the month after 9/11 with our police, fire and emergency readiness officials to adopt a plan and strategy that has benefitted our cities and people. He will be credited for calling for the federalization of the airport security personnel within days after 9/11 as well as his advocacy for the strong role of the mayor in homeland security.

As Vice President of the Conference, he designed and chaired our first National Rails Summit and the first elected Mayor of London was featured here at Union Station in Washington.

On September 11, 2001, he and I were breakfasting with David Broder, national reporter for the Washington Post, as we were about to launch a national Competitive Cities Tour from Hollywood and Highland in Los Angeles across this nation. That tour, which would have done so much for the economic vitality of our cities, never happened and the agility and mobility of a dynamic leader heading up a band of mayors, with those same characteristics, forced us to postpone the tour and bring our energy and talents to confront the grave safety and security issues facing our cities and our people.

Now Marc heads up a national organization, the National Urban League, and its mission is all about business opportunities and competitiveness here and abroad. No doubt Marc will pick up that vision he had when our competitive cities thrust was put on hold because of 9/11. And we will be there with him. Throughout our history, the Conference of Mayors and the National Urban League have had some strong relations. Whitney Young, former NUL head, was the first black man ever to address The U.S. Conference of Mayors and we all worked with Vernon Jordan and the late Secretary of Commerce Ron Brown when they served the National Urban League, on many issues here in Washington and throughout the nation.

Marc's father, Ernest "Dutch" Morial, was the 43rd President of the Conference of Mayors. When I went to Dutch's funeral in 1989, his son, Marc, rose to speak. I wrote then in this column that people had better watch him because he will emerge as a national leader. He said then as he stood before his father's casket, "Dutch, we will keep the drive alive." Dutch was smiling down last week when the nation learned his son had been chosen from over 450 candidates to lead this national organization. There was joy down here on earth that day too — at our Washington headquarters and in cities across America because we know wherever Marc goes, whatever he does — it will be about making our cities strong for all our people. From all of us — congratulations Marc — to Michelle, Mason and to his mother, Sybil and family. Marc's appointment is effective June 1 and incoming President Mayor James Garner has invited him to speak at his inaugural breakfast when Mayor Garner takes the gavel and becomes our President Tuesday morning, June 10, in Denver. All of you can congratulate Marc at that time.

Denver — Our 71st Conference

Conference President Boston Mayor Thomas M. Menino and Host Mayor Wellington E. Webb have worked hard to make this meeting most enjoyable, productive and meaningful to the mayors of the nation. Denver is where you need to be June 5-10. Mayors from other continents will join you and our USA mayors as we gather for the major bipartisan political event of 2003. Come and learn from the best and take ideas and resources home to your city. It's one you don't want to miss.

I look forward to seeing all of you in Denver — soon. We will plan, plot and renew our energy and then go forward to make our cities better and stronger for the men, women and children of America.