By Larry Jones
July 2, 2012

Conference President Los Angeles Mayor Antonio R. Villaraigosa led mayors in a discussion during the June 16 Business Meeting on how the nation's fiscal crisis is affecting the economy. It was pointed out that the $1.3 trillion annual federal deficit and the $15.7 trillion national debt will continue to worsen until a deficit reduction agreement.

Mayors were reminded that partisan disagreement have prevented Congressional leaders and the President from reaching agreement on a deficit reduction plan. Instead, a debt ceiling deal was reached last year that includes an arbitrary budget sequestration that would devastate both domestic investment and national defense programs. One of the main issues dividing the two sides is whether or not the deficit reduction plan should include just spending cuts or both spending cuts and revenues.

After some debate, a compromise between Villaraigosa, Conference Vice President Philadelphia Mayor Michel A. Nutter and Conference Second Vice President Mesa Mayor Scott Smith — the Conference of Mayors adopted a resolution "calling on leaders in Washington to return immediately to the negotiating table in order to reach a comprehensive, balanced deficit reduction agreement, in the spirit of the Simpson-Bowles Commission, that will foster long-term economic growth and prevent the implementation of a draconian budget sequestration that ignores the nation's priorities."