By Dave Gatton
July 2, 2012

The Council on Metro Economies and the New American City met during the 80th Annual Conference of Mayors in Orlando on June 13 to address a series of issues ranging from the state of the economy, summer jobs, controlling health care costs, and sustainable development. The Council is Chaired by Columbus (OH) Mayor Michael Coleman.

IHS Global Insight Senior Director James Diffley told the mayors that the U.S. economy was slated for real growth of 2.1 percent in both 2012 and 2013, which he characterized as modest, but steady. He predicted the economy would create 150,000 jobs per month for the second half of the year and that consumers would see a 0.5 percent increase in disposable income due to falling gas prices. He said that falling natural gas prices also were helping metro economies by providing cheaper energy to both residences and companies.

When asked by Coleman on the impact of the Eurozone crisis, Diffley responded that he expected the Euro region to stay in recession, but that global markets were not projecting the European crisis would spread globally.

Julian Malasi, of the American Chemistry Council, indicated that the chemical sector was slated to add significant jobs over the course of the coming years and that several chemical companies were moving operations back to the U.S. due to the availability of cheaper natural gas.

Bridgeport Mayor Bill Finch described how Bridgeport used its 2012 DollarWise Innovations grant to support a financial education "Reality Fair" for inner city youth to prepare them for real life financial decisions. The fairs replicate "real" budgeting decisions based on salary levels and transportation, housing, and entertainment expenses. The fairs will be supplemented by financial education offerings in the city's middle and high schools. "Educating our kids on the reality of personal finances is key to their future success," Finch said. "It's not enough to receive a paycheck, one has to know how to manage it wisely."

San Francisco Mayor Ed Lee described how his office had launched a major program to ask local corporations and businesses to sponsor 5,000 summer youth jobs in 2012. Called San Francisco Summer Jobs -, the initiative is a partnership with the United Way of the Bay Area and Bay Area companies. Some of those companies will hire youth directly, while others will provide funds for youth to be placed in summer internships in non-profits. Participating companies range from Jamba Juice, UPS, salesforce.com and Bank of America.

Lee said that mayors could no longer rely on sufficient federal funding for summer youth jobs, particularly when youth unemployment rates are so high. To date, San Francisco has secured 4,000 summer youth slots, with every intention of meeting the mayor's goal.

Coleman responded that Columbus also solicited local corporations to support youth during the summer, and added that mayors must actively solicit corporations to participate in summer youth jobs programs.

The summer jobs effort is part of The US. Conference of Mayors DollarWise Campaign that promotes summer employment and receiving a "first paycheck" as a form of financial education. The Campaign has established a goal of incorporating money management training into every summer youth job experience by 2015.

Bank of America California President Janet Lamkin said that Bank of America was keenly aware of the need for summer youth employment and was launching a greater commitment to support such programs in cities this summer. Recently Bank of America funded 19 city summer job programs and announced a request for proposals to award an additional $15 million to non-profits to expand their summer job offerings. Bank of America is the founding sponsor of the mayors' DollarWise Campaign.

Des Moines Mayor Frank Cownie discussed his city's process for promoting sustainable development policies, including adoption of a Conservation and Environmental Enhancement Policy, which has led to a nine percent reduction of carbon dioxide emissions and an anticipated additional 15 percent reduction by 2015. The city has received several LEED certifications on public buildings since 2008, including Platinum status for the Franklin Avenue Library in 2011. These public examples have helped spur several private LEED certifications such as the Wellmark Corporate Campus, one of the largest in the nation. "The public sector must lead by example so that the community understands that green buildings can be built economically throughout the entire city," he told his colleagues.

In a remarkable presentation, Chattanooga Mayor Ron Littlefield described how his city had kept health care costs for employees, retirees and their families essentially flat over the last five years. Through self- insurance and an aggressive wellness program which includes an on'site pharmacy, a fitness center, lifestyle management programs, and employee incentives, the city has been able to keep premiums low and stable while providing value based benefits. Through the program's savings, the city is constructing a new on'site health center for acute and chronic care. "Chattanooga has found a way to control health care costs while improving health care itself. This is an area where cities have the opportunity to lead," he said.

Norm Jacknis, of Cisco, presented to the mayors how technology changes in the work place were changing the landscape of cities and their future economic competitiveness. He referenced the exploding number of home offices as a "communications revolution in the home," and told the mayors that office space per employee was slated to shrink from 200 sq. ft. to just 50 sq. ft. by 2015. Office tenants renewing their lease often cut their total space by around ten percent to30 percent. He said the new trend would be the installation of work stations throughout the city, giving city residents the flexibility to work or shop anywhere, not just in an office.

Similarly, Jacknis predicted that retailers will expand the definition of a storefront, using virtual shopping stores around the city, adding excitement to the city and the opportunity for additional revenue. "Augmented reality" will bring virtual experience into the physical interior, allowing virtual shopping for shoes, glasses, beauty products, jewelry and clothing. The bottom line: try on a suit or dress anywhere, using a kiosk in a transit station or public space.

Jacknis also told the mayors they could literally change the image of their city by creating destinations that blend physical and virtual space. For example, an old building in London, becomes a projection canvass for Vienna. In response to this and other illustrations of this point, Finch said, "I want that. How do I get that?" Jacknis responded that it is surprisingly inexpensive and can be done with existing technology. "The key is creating vitality and excitement so that people, who can choose to live anywhere in the world, choose your city," he said.

Chicago Building Commissioner Michael Merchant concluded the session by describing how the city developed a streamlined method for managing vacant and abandoned buildings, many of which were the result of the ongoing housing foreclosure crisis.