August 5, 2002

At a special leadership strategy meeting in Boston July 24-26, Conference President Boston Mayor Thomas M. Menino presided as mayors sharpened their focus on critical federal priority issues which will be presented to key congressional leaders during the upcoming September 26 "Lobby Day" in Washington, DC.

On that date, mayors will urge congressional leaders to pass pending legislation on five critical congressional issues comprising an agenda to bolster the economy.

Menino, presiding over the Summer Leadership Meeting, urged mayors to focus on five legislative issues for Lobby Day. These include pressing airport security issues, pending housing legislation, homeland security, transportation legislation and Amtrak's status, funding for COPS and the Local Law Enforcement Block Grant (LLEBG) program and education and workforce development legislation.

Host Mayor Menino said mayors pressing their demands on Capitol Hill will have a new ally since members of the Conference of Mayors Business Council, now numbering 75, will be invited to accompany mayors on their hill visits.

Issues discussed at the three-day session ranged the gamut of issues affecting cities from the status of homeland security legislation, affordable housing, cuts in programs such as COPS, Amtrak legislation, welfare reform reauthorization, TEA-21 reauthorization, and parks funding.

Congress is now in recess and will return to deal with these and other issues in September. Mayor Menino made it clear that the September 26 "Lobby Day" is designed to urge Senators and Representatives not to neglect urban issues as the country gears up to continue the fight against terrorism.

Following is a list of potential issues to be raised during the September 26 Lobby Day. The top officers of the Conference will meet with the House and Senate Leadership including Daschle, Lott, Hastert and Gephardt, and teams of mayors will meet with other key House and Senate members around the final list of priorities (which will be narrowed and refined in Boston and Santa Barbara prior to Lobby Day). The key House and Senate members listed under each issue reflect relevant committee assignments.

Some of the priorities relate directly to authorization bills, others to appropriations bill. In that not all of the House and Senate appropriations subcommittees have marked-up their FY 2003 funding bills, many of the following areas will have to be refined as we see where there are cuts, or where there is the opportunity for increases or new initiatives.

We would also work to identify potential partners to help lobby on the final priorities, pulling from our Business Council and other business organizations with shared priorities, and key public'sector groups.

Housing

On July 10, the House Financial Services Committee approved H.R. 3995, the Housing Affordability Act of 2002. The bill would authorize a new dollar-for-dollar matching grant program for state and local housing trust funds, and reauthorize the HOPE VI severely distressed public housing program, the Housing Opportunities for Persons with AIDS (HOPWA) program, and the McKinney Act's homeless housing programs through 2004. The bill also approved the administration's American Dream Down payment Assistance program as well as 5,000 Section-8 project-based vouchers to be used for rent subsidies for the production and preservation of housing for families at or below 30 percent of median income. FHA multifamily mortgage limits are also indexed to reflect the rising costs of building, land, and impact fees in the future.

As for the matching grant program for state and local housing trust funds, seventy-five percent of the funds would have to be used for rental housing serving households at or below 30 percent of the area median. The other 25 percent could be used for rental housing or homeownership for families up to 80 percent of median.

It is important to note that the matching grant program replaced a national housing trust fund provision that was larger in scale, and a new rental housing production/preservation component within the HOME program. The matching grant program was introduced by Representative Sue Kelly (NY), while the larger housing trust fund was introduced by Representative Bernie Sanders (VT). The new HOME production program was in the original bill, H.R. 3995, authored by Representative Marge Roukema (NJ).

In the Senate, Senator Paul Sarbanes (MD) has introduced S.2721 that would improve the voucher rental assistance program. If there is to be a housing bill this year, it most likely will come out of senate/house deliberations on H.R. 3995 and S. 2721. Key members in the Senate include Sarbanes (MD), Dodd (CT), Reed (RI), Schumer (NY) Corzine (NJ), Gramm (TX), Allard (CO), Mikulski (MD), Leahy (VT), Bond (MO). Key members in the House include Roukema (NJ), Leach (IA), Oxley (OH), Sanders (VT), Frank (MA), Bereuter (NE), Kelly (NY), Shays (CT), Lee (CA), Schakowsky (IL), Tubbs Jones (OH), Capuano (MA), Waters (CA), Watt (NC), Clay (MO), Walsh (NY), Mollohan (WV), Kaptur (OH).

Key FY 2003 Housing Appropriations Issues

The Conference of Mayors would fund the Community Development Block Grant (CDBG) program at $5 billion (formula funding) and the HOME Investment Partnerships program at $2.25 billion. Mayors would also seek passage of a homeownership tax credit and legislation to end predatory lending. Increased funding for the HOPE VI program at a level of $1 billion per year is also a goal of the mayors national housing agenda. Mayors also strongly support the renewals of homeless housing through the HUD Housing Certificate Fund. That is, permanent housing created through the McKinney Act homeless programs B Shelter Plus Care, the Supportive Housing Programs, the SRO Program B should be renewed through the mainstream HUD Housing Certificate Fund, rather than through renewals of the McKinney Act programs. Mayors support $3.5 billion each to the public housing modernization (capital) program and the public housing subsidy program. The Public Housing Drug Elimination program is supported at a funding level of $410 million.

Key members in the Senate include Sarbanes (MD), Dodd (CT), Reed (RI), Schumer (NY) Corzine (NJ), Gramm (TX), Allard (CO), Mikulski (MD), Leahy (VT), Bond (MO), Baucus (MT) and Grassley (IA). Key members in the House include Roukema (NJ), Leach (IA), Oxley (OH), Sanders (VT), Frank (MA), Bereuter (NE), Kelly (NY), Shays (CT), Lee (CA), Schakowsky (IL), Tubbs Jones (OH), Capuano (MA), Waters (CA), Watt (NC), Clay (MO), Walsh (NY), Mollohan (WV), Kaptur (OH), Thomas (CA) and Rangel (NY).

$3.5 Billion First Responders Initiative/Homeland Security Block Grant

The Senate Environment and Public Works Committee has approved a bill to authorize the Administration's proposed $3.5 billion first responders initiative, and other committee action is expected soon. As proposed by the Administration, the Senate bill would provide the funding through the states, and require that 75 percent then be passed on to local governments and local entities. Some improvements were made in the bill during markup by Senate Clinton to require a timely sub-allocation of funding, but the bill would still provide the funding to the states, and would not allow overtime.

Mayors have testified before the full Senate Appropriations Committee, the Senate HUVA Appropriations Subcommittee, the Senate Judiciary and Governmental Affairs Committees, and the House Government Reform Committee. This is a very serious fight to get the money directly to cities. There are also major jurisdictional fights still going on as to whether FEMA or the Department of Justice should run the program B and thus which Congressional committees should have jurisdiction.

To that end, the Senate Commerce, State and Justice Appropriations Subcommittee has approved a $1 billion increase (to $2 billion) for first responder money provided through the Department of Justice. While exact language is not yet available, in the past several years the majority of this money has gone to the states, who are then to sub-allocate based on state plans B and there have been large delays in many cases. The Senate appropriations subcommittee with jurisdiction over FEMA (HUVA-IA) is marking-up its FY 2003 bill as this document goes to print, so it is not clear if FEMA money as requested by the Administration will be provided.

House action on these bills is not expected until September. Key members in the Senate include Jeffords (VT), Smith (NH), Mikulski (MD) and Bond (MO) if FEMA gets program, Leahy (VT), Hatch (UT), Biden (DE), Hollings (SC) and Gregg (NH) if Justice gets program. Key members in House include Walsh (NY), Mollohan (WV), Don Young (AK), Oberstar (MN), LaTourette (OH) and Costello (IL) if FEMA, Sensenbrenner (WI), Conyers (MI), Wolf (VA), and Serrano (NY) if Justice.

COPS/LLEBG Funding

The President's budget proposes to reduce the funding administered by the COPS Office from $738 million in FY 2002 to $144 million (80 percent cut), and proposes to combine the Local Law Enforcement Block Grant (funded at $400 million in FY 2002, down from $522 million in FY 2001) and the state-based Byrne Formula Grant Program into a new Justice Assistance Grant program. Overall funding for the combined new program would be reduced from $1 billion to $800 million. Mayors have testified on these cuts, press events and meetings were held during a lobbying day in March, and numerous letters have been sent. On July 18, the Senate Appropriations Committee approved its FY 2003 funding bill for the Department of Justice which includes $737 million for the COPS program (including $330 million for hiring and a new $100 million communication interoperability program), and $400 million for the LLEBG (with a slight funding reduction as a result of the earmark for the Boys and Girls Clubs increasing from $70 million to $80 million).

The House Appropriations Committee action is not expected until September, but early indications are that funding will be greatly reduced for DOJ grant programs, and there may be support for the merging of the LLEBG with the Byrne program as proposed by the Administration.

Key members in the Senate include Hollings (SC) and Gregg (NH), Leahy (VT), Hatch (UT), Biden (DE). Key members in the House include Wolf (VA), and Serrano (NY), Sensenbrenner (WI), Conyers (MI).

National Borders - Transportation and Security

Border-related issues are directly related to efficient and secure movement of people and goods and equipment through border ports-of-entry and substantially involve funding for implementation of technology and automated systems in addition to funding to ensure adequate staffing levels and training in the agencies that work on the border and at ports-of-entry; including Customs, Immigration and the Border Patrol. Customs particularly, is currently experiencing heavy staff losses to the Transportation Security Agency. Transportation infrastructure at the borders is also critical to the efficient movement of NAFTA trade and Conference policy calls for a focused Borders and Corridors program targeted to ensure expeditious movement of goods and equipment through border/overland ports-of-entry.

Key House members include Sensenbrenner (WI) and Conyers (MI) of the House Judiciary Committee, Tauzin (LA) Dingell (MI) of the House Energy and Commerce Committee, Reyes (Hispanic Caucus Chair). Transportation and Infrastructure - Young (AK) and Oberstar (MN). Key members of the Senate include Hatch (UT) and Leahy (VT) of the Senate Judiciary Committee; McCain (AZ) and Hollings (SC) Senate Commerce, Science and Transportation Committee.

High Quality After'school and Out-of'school Time Programs Mayors' passed a resolution in Madison calling for an increase in the federal investment in community-based after'school programs and requests that funding for the 21st Century Community Learning Centers, which supports community efforts to expand out-of'school time programming, be increased to $1.5 billion. The President's FY 03 Budget level funds this program at $1 billion. On July 17, the Labor-HHS-Education Subcommittee on Appropriations marked up their bill for FY 03 and increased the program to $1.09 billion, an increase of $90 million over last year. Because the final appropriations decisions won't be made until September, it is an ideal time for mayors to target Senate and House appropriators and the members of the authorizing committee.

Key members in the Senate include Byrd (WV), Stevens (AK), Harkin (IA), Specter (PA), Kennedy (MA), Gregg (NH), Dodd (CT), Collins (ME). Key members in the House include Young (FL), Obey (WI), Regula (OH), Boehner (OH), Miller (CA), Castle (DE), Kildee.

Full Funding of ESEA

Adequate federal resources must be allocated to assist local school districts to implement the new performance/testing mandates and accountability standards mandated in the Elementary and Secondary Education Act (ESEA) passed last year. Enhanced funding for Title I, bilingual education and special education and other titles of the legislation are critical to make ESEA a success.

The Subcommittee appropriated $11.85 billion for Title I, an increase of $1.5 billion over last year plus $100 million for a new program designed to help turn around failing schools. They increased Bi-lingual Education by $75 million to $740 million, and increased Special Education to $8.5 billion, a billion increase over last year.

In addition to lobbying the appropriators for funding, the House and Senate authorizing committees need to hear that mayors are concerned about the inadequacy of funding for the mandates in the legislation that they passed.

Key members in the Senate include Byrd (WV), Stevens (AK), Harkin (IA), Specter (PA), Kennedy (MA), Gregg (NH), Dodd (CT), Collins (ME). Key members in the House include Young (FL), Obey (WI), Regula (OH), Boehner (OH), Miller (CA), Castle (DE), Kildee.

Strong Role for Mayors in Public Schools

Mayors are committed to advancing education reform in America's cities through the leadership of America's mayors and have formed a partnership with the Broad Foundation to advance this agenda. Part of the partnership with the Broad Foundation is to work with the Department of Education to provide support for local education reform efforts led by mayors and work with Congressional and Administrative staff to secure new resources B not only targeted to mayoral support, but also for such issues as school construction, special education funding and school to work programs. As September is back to school time across the country, it is an ideal time for mayors to invite Congress to partner in this campaign to secure new resources.

Key members in the Senate include Byrd (WV), Stevens (AK), Harkin (IA), Specter (PA), Kennedy (MA), Gregg (NH), Dodd (CT), Collins (ME). Key members in the House include Young (FL), Obey (WI), Regula (OH), Boehner (OH), Miller (CA), Castle (DE), Kildee.

TEA- 21 Reauthorization

The current six-year authorization that expires in October 2003 will provide $165 billion for core highway programs and more than $36 billion for public transit. Expectations are that the reauthorization will be maintained at approximately $165 billion. While the metropolitan areas are responsible for driving the economic performance of the nation, metropolitan areas receive about six cents of every dollar made available to states for transportation. It is imperative that in the reauthorization that Congress and the Administration understand the role of metropolitan areas and substantially increase the suballocation of directing funding and project selection authority to cities.

The Administration and Congress have begun the process of developing priorities for the reauthorization bill. The Department of Transportation will forwarding their draft of the bill to the Office of Management and Budget (OMB) by the end of September of this year. OMB will then send the bill to Congress in early January 2003, with an expected completion by fall of 2003.

Key members in the Senate include Jeffords (VT), Clinton (NY), Sarbanes (MD), Graham (FL), Lieberman (CT), Harry Reid (NV), Jack Reed (RI), Boxer (CA), Corzine (NJ), Smith, (NH), Crapo (ID), Chafee (RI), Spector (PN), Domenici (NM), Dodd (CT), Reed (RI), Schumer (NY), Gramm (TX), Shelby (AL), Allard (CO), Johnson (SD) and Carper (DE). Key members in the House include Young (AK), Oberstar (MN), Petri (WI), Mica (FL), Quinn (NY), Gilchrest (MD), Boehlert (NY), Pombo (CA), Borski (PA), Rahall (WV), Lipinski (IL), Clement (TN), Costello (IL), Nadler (NY), Menendez (NJ), Filner (CA), Johnson (TX), Millender-McDonald (CA), Cummings (MD), Sandlin (TX), Tauscher (CA), Lampson (TX) and Baldacci (ME).

Amtrak

We are lobbying Congress to provide at least $1.2 billion for Amtrak in FY 2003, which is the minimum necessary to maintain the current system while the Administration and Congress deal with the long-term financial challenges and reforms as part of the Amtrak reauthorization. Relevant Committees in the Senate and House have begun to address the reauthorization, including Senator Ernest F. Hollings' The National Rail Defense Act, Senator John McCain's The Rail Passenger Service Improvement Act and in the House, Representative Jack Quinn's Amtrak Reauthorization Act of 2002.

There is strong support among Senate appropriators for a $1.2 billion appropriation; however, in the House the expectation is an appropriation somewhat above the $521 million that the President has requested in his FY03 budget. The up to the minute status of this issue is that the Senate Transportation Subcommittee likely will take up the transportation appropriation on Tuesday, July 23, followed by full committee action July 25. The House has not yet scheduled its markup of the transportation appropriations bill but is planning for a date in September.

Last week, Congressional negotiators approved a $28.9 billion emergency appropriation to fund military and homeland security through September. Included in this emergency appropriation is $205 million for Amtrak to keep the national system running through the end of September.

Key members in the Senate include Hollings (SC), Kerry (MA), Breaux (LA), Dorgan (ND), Boxer (CA), Edwards (NC), McCain (AZ), Lott (MS), Hutchison (TX), and Carper (DE). Key members in the House include Young (AK), Oberstar (MN), Quinn (NY), Petri (WI), Clement (TN), Nadler (NY), Borski (PA), Cummings (MD), Lipinski (IL), Larsen (WA), Boehlert (NY), Simmons (CT), and Ferguson (NJ).

Transportation Security

We are calling on Congress to ensure full and accurate reimbursement for security improvements related to 9/11 measures, including reimbursement of local law enforcement officers working at the nation's commercial airports as required by the TSA. Full and accurate reimbursement for security infrastructure cost incurred by local government or airports meeting requirements in the Transportation Security Law is needed, as well as a substantial increase in the federal grants to secure seaport security.

This Tuesday, July 23, the Senate Appropriations Transportation Subcommittee will take up the Administration's $4.2 billion FY03 request for the TSA, followed by full committee action July 25. The TSA has been heavily criticized by lawmakers for burning through money too quickly and for withholding information from Congress on how its funds are being spent.

This past Friday, July 19, The House Select Committee on Homeland Security approved a provision in the homeland security plan that will give airports until December 31, 2003 to begin screening all checked baggage for explosives rewriting the deadline imposed by the transportation security law (S. 1447 B PL 107-71). The future of this provision is uncertain with the Senate vowing to oppose this action.

Key members in the Senate include Hollings (SC), Kerry (MA), Breaux (LA), Dorgan (ND), Boxer (CA), Edwards (NC), McCain (AZ), Lott (MS), Hutchison (TX), and Carper (DE). Key members in the House include Young (AK), Oberstar (MN), Quinn (NY), Petri (WI), Clement (TN), Mica (FL), Nadler (NY), Borski (PA), Cummings (MD), Lipinski (IL), Larsen (WA), Boehlert (NY), Simmons (CT), and Ferguson (NJ).Key members in the Senate include Hollings (SC), Carper (DE).

Job Training

The President's FY 03 Budget includes significant cuts ($545 million) to job training for adults, dislocated workers and youth, including the elimination of the Youth Opportunity Grants program, which mayors have used to target low-income youth in high poverty neighborhoods. While the mayors have called attention to the critical need for skills development through the skills summits last year and the working families agenda this year, this Administration is focused on the state run employment service and Job Corps. Workforce funding is in the same appropriations bill as funding for NIH and education, so competition is tough.

On July 18, the Senate Appropriations Committee unanimously approved a Labor-HHS-Education spending bill that restores the President's cuts in funding for adult, dislocated worker and youth formula funding and restores the Youth Opportunity Grant Funding level of $225 million. The House Labor-HHS-Education Subcommittee plans to mark up its bill in September and we expect that they will support the President's cuts.

Workforce funding is especially vulnerable in light of the last minute elimination of $400 million in funds for dislocated workers in the FY 02 Supplemental Appropriations bill. This action, which occurred on July 18, was taken by top appropriators from both Chambers and the White House. The President originally proposed these emergency dislocated worker funds and both the Senate and the House passed bills which included these funds.

September will be a critical time to lobby appropriators in the House and Senate to urge them to provide increased formula funded job training funds for adults, dislocated workers, youth, and youth opportunity grants and H-1B skills grants. It is a great opportunity to lobby with business partners who need skilled workers.

Key members in the Senate include Byrd (WV), Stevens (AK), Harkin (IA), Specter (PA). Key members in the House include Young (FL), Chair, Obey (WI), Regula (OH).

Welfare Reform (TANF) Reauthorization

On June 26, the Senate Finance Committee approved their version of a welfare reform reauthorization bill called the Work, Opportunity, and Responsibility for Kids (WORK) Act of 2002. While the Senate bill more closely reflects Conference of Mayors policy than the House passed bill (H.R. 4737), the bill needs amendments to provide resources for the increasingly disproportionate number of welfare recipients that are concentrated in the nation's cities.

There is no plan at this time to replace the Welfare-to-Work legislation, which provided mayors $3 billion and a direct role in using highly targeted funds to move long-term recipients with multiple barriers into work. The Senate Health Education Labor and Pensions (HELP) Committee, which has jurisdiction over the TANF work provisions, plans to markup after Senate Finance. Timing in September is uncertain. The Senate may be preparing for a floor vote or there may be a House'senate conference underway. Or, there may be no action at all because of the drastic differences in the proposals and it may turn into an election issue. In this case there would be a one-year temporary reauthorization. Regardless, September is an opportunity for Congress to hear first hand from mayors about the disproportionate concentration of welfare recipients in the nation's cities and the need for the next phase of welfare reform to respond to that and to be responsive to the needs of working families. This is also a great opportunity to lobby with business partners who need skilled workers.

Key members in the Senate include Baucus (MT), Grassley (IA), Breaux (LA), Kyl (AZ), Kennedy (MA), Gregg (NH), Wellstone (MN), Enzi (WY). Key members in the House include Thomas (CA), Rangel (NY), Herger (CA), Cardin (MD), Boehner (OH), Miller (CA), McKeon (CA) Mink (HI).

Reauthorization of the Workforce Investment Act (WIA)

WIA, which went into effect on July 1, 2000, is off to a strong start in cities. WIA is scheduled for reauthorization next year and Senate staff indicates that they plan to take action early in the year. September is an ideal time for mayors to be vocal on the Hill to influence developing legislation. With the economic downturn, workforce issues continue to be a major factor in the health of metropolitan economies and the opportunities for working families. Mayors' policy as adopted in Madison calls for strong local authority and flexibility for mayors and their local Workforce Investment Boards to remain at the core of WIA and for a major investment in skills.

Though Congress designed WIA to be a locally driven system, rhetoric from the Department of Labor on WIA reauthorization is focused on the state run employment service as the driver of the local system. In addition, rumors are that the Administration wants to transfer youth training programs to the Department of Education and adult training programs to the Department of Health and Human Services, so that DOL only deals with the dislocated workers. This would be very destructive to the strong progress mayors and their local workforce boards have made and would weaken the mayors' ability to be drivers of the local workforce system. This is also a great opportunity to lobby with business partners who serve on mayors' workforce boards and have worked with mayors to design local systems that are responsive to business and community needs.

Key members in the Senate include Kennedy (MA), Gregg (NH), Wellstone (MN), Enzi (WY). Key members in the House include Boehner (OH), Miller (CA), McKeon (CA), Mink (HI).

Brownfields

The Conference of Mayors is seeking full funding ($250 million) for the newly signed Small Business Liability and Brownfields Redevelopment Act. The President has proposed $200 million in his budget.

In addition, there are proposals in both the House and Senate to create a brownfields redevelopment program at both HUD (H.R. 2941 and S.1078) and the Economic Development Administration at the Department of Commerce (H.R.4894 and S.1079). Regarding HUD, Congress is simply trying to decouple the Brownfields Economic Development Initiative (BEDI) from Section 108 funding. The House has passed their version and is awaiting Senate action. Senate staff thinks this problem can be solved in the Appropriations Committee.

Key members in the Senate include Mikulski (MD) and Bond (MO). Key members in House include Walsh (NY) and Mollohan (WV).

Water Infrastructure The House Transportation and Infrastructure Committee reported out H.R.3930, the Water Quality Financing Act of 2002. It would provide $20 billion over five years for wastewater infrastructure through State Revolving Loan Funds. The Senate Environment and Public Works Committee has passed S.1961, the Water Investment Act of 2002. It provides $41.5 billion over five years for water and wastewater infrastructure through State Revolving Funds. Both bills require, as a condition of receiving funds, a utility to do infrastructure assessments, consider alternative financing mechanisms, and base rates on actual costs to run and replace existing facilities. The Conference, in testimony, has expressed an unwillingness to accept this mandate, given the fact that we do not anticipate any increase in appropriated funds from historical levels.

However, H.R. 2207, an IRS modification, would exempt water and wastewater infrastructure from the state volume cap for private activity bonds. It is estimated to cost Treasury $147 million for 10 years and could potentially cause an additional $6 billion in private sector investment. The Urban Water Council has been lobbying hard to gather support for this bill. Key members in the House include Ways and Means Committee members, particularly Chairman Thomas (CA), as well as Shaw (FL), Dunn (WA), Portman (OH). Key members in the Senate include Graham (FL), Clinton (NY), and Baucus (MO).

Clean Air

Senator James Jeffords (VT) has introduced S.556 to amend the Clean Air Act to include older, coal-fired utilities in complying with Clean Air Act requirements. The White House has also unveiled their Clear Skies Initiative which deals with the same issue but has not yet been introduced. A markup of S.556 was held on Thursday, June 27. The bill passed 10-9 with Senator Lincoln Chaffee (RI) joining the Democrats in voting for the bill and Senator Max Baucus (MO) joining the Republicans in voting against the bill. The major source of disagreement was the issue of whether carbon dioxide (CO2) should be included as a regulated emission. (The Clear Skies Initiative does not include CO2.) Senators Chaffee and Carper have prepared substitute language for Senator Jeffords bill that would still include CO2 but at a less stringent level and allow additional flexibility in meeting those standards. It is their hope to reach a bipartisan agreement on their versions. No date has been scheduled for the full Senate floor to debate this issue. At this time, it is not expected for the Senate to vote/pass this bill. However, these proposals will probably be the baseline for future legislation.

Key members in the Senate include Senate Environment and Public Works Committee members including Jeffords (VT), Smith (NH), Chaffee (RI), Carper (DE), and Voinovich (OH).

Substance Abuse Treatment and Prevention

The President has taken a leadership role with an initial request of $1.8 billion to increase treatment system capacity which includes a $60 million increase in the state block grant program and a $67 million increase has been directed towards the Treatment Targeted Capacity Expansion (TCE) program B grants that are awarded to the cities, towns, and counties, and states in most need. However, $50 million of the $67 million has been set aside within the program for state use only. This initiative is a complete contradiction to the original intent of the program which was to give localities an opportunity to receive direct federal assistance to address emerging and extremely difficult drug treatment issues in their communities.

The Conference supports the President's request for a $60 million increase in the state block grant. We also support a $67 million increase in the targeted capacity expansion program without any set-aside provision. We oppose any set-asides with the TCE program and oppose the $45 million cut to the Center for Substance Abuse Prevention and the $103 million cut to the Safe and Drug Free Schools and Communities Program that the President requested in his FY 2003 budget.

Key players in the Senate include Kennedy (MA), Wellstone (WI), Byrd (WV), Stevens (AK), Harkin (IA). Key players in the House include Young (FL), Obey (WI), Regula (OH).

Domestic HIV/AIDS Funding

The Senate Appropriations Committee is expected to approve the subcommittee spending bill that is $5.7 billion more than the President's budget request. The subcommittee spending bill included a $161 million increase for Ryan White CARE Act programs for FY 03. The Title I and III programs received $20 million and $11 million increases respectively.

In order to ensure the appropriate level of medical care services is available to those living with HIV/AIDS in our cities, the Conference is requesting a $43 million increase in Title I and a $14 million increase in Title III funding for FY 2003.

Title I of the CARE Act provide emergency assistance to the 51 metropolitan areas most heavily impacted by the AIDS epidemic. Nearly 75% of people living with HIV/AIDS live in these EMAs; Title I funds ensure the delivery of comprehensive HIV health care and treatment to 500,000 individuals. Title III provides direct grants to 310 community-based clinics and public health providers in 41 states, Puerto Rico, the Virgin Islands and D.C. Key members in the Senate include Kennedy (MA), Byrd (WV), Stevens (AK), Harkin (IA). Key members in the House include Young (FL), Obey (WI), Regula (OH).

Parks

As CARA legislation will not be moving this year, the focus will be on Interior Appropriations. The Administration has recommended no funding for the Urban Park and Recreation Recovery Program (UPARR) which last year received $30 million. The House Interior Appropriations Subcommittee has recommended $30 million for UPARR. The Senate Interior Appropriations Committee has recommended $10 million. The President has recommended $150 million for the stateside program of the Land and Water Conservation Fund, an increase of $6 million over last year's appropriations. The House has recommended $154 million and the Senate Subcommittee has recommended $144 million. Depending upon the status of the Interior Appropriations in the Fall, mayors may need to pay visits to key Congressional supporters.

Key members in the House include Skeen (NM), Dicks (WA); and Senator Byrd (WV) and Senator Boxer (CA) in the Senate.

Travel and Tourism

The House Subcommittee on Commerce, Trade and Consumer Protection of the House Energy and Commerce Committee held a hearing in May on H.R. 3321, sponsored by Representative Mark Foley to provide $100 million to states to launch campaigns to attract foreign visitors.

Mayors adopted a resolution in Madison favoring that the money go directly to cities.

In the Fall, mayors could visit key Congressional leaders to discuss the legislation and the money going to cities. Key members in the House include Foley (FL), Tauzin (LA) and Stearns (FL).

Tax Credits

Although it appears that Congress will not take up a major tax bill this year, we should, in preparation for next year, build support for key priorities such as Housing Tax Credits for first-time home buyers; High Speed Rail Tax Credits to address urban sprawl and traffic congestion; School Construction Tax Credits to help build more schools and reduce the size of classrooms; and extension of the Earned Income Tax Credit program. There is already broad bipartisan support for high speed rail and school construction tax credits and legislation has been introduced for exempting water and wastewater facilities from the state volume caps.

Key members in the Senate include Baucus (MT), Grassley (IA). Key members in the House include Thomas (CA), Rangel (NY).

Fast Track Trade Bill

The House and Senate have passed different versions of the so called "fast track" trade bill. A provision in the bill will allow foreign investors operating in the U.S. to circumvent our laws (particularly those that protect the environment, public health and safety). If a foreign investor views a local action (e.g. a zoning law that restricts the use of property) as a barrier to trade, he could sue the U.S. government for damages. The claim would be heard by an international arbitration panel, which would not be obligated to follow U.S. law or court rulings. This will give foreign investors greater rights than U.S. investors.

We need language added to the conference report to ensure that foreign investors are granted no greater rights than U.S. investors and that U.S. laws and court rulings can not be challenged by international arbitration panels. The Conference adopted a resolution at the annual meeting in Madison urging conferees to add such language to the conference report. House conferees have not been named.

Key members in the House include Thomas (CA), Rangel (NY), Levin (MI), Matsui (CA). Key members in the Senate include Baucus (MT), Grassley (IA), Kerry (MA), Hatch (UT).

Energy Policy Act of 2002

A House'senate conference committee will begin June 27 to work out the differences between the energy bills (S.517/H.R.4) passed by the two chambers. Major differences include drilling in Alaska's Arctic National Wildlife Refuge, Corporate Average Fuel Economy, Climate Change Policy, Electricity Restructuring, Renewable Portfolio Standards (RPS), and the overall tax package.

Key issues for cities are: Renewable Portfolio Standards, which require utilities to produce ten percent of their energy by 2020 from renewable energy sources B under the RPS provision municipal owned utilities are exempt. Electricity Restructuring, including issues regarding open access transmission FERC authority over electric utilities, reliability provisions, and critical consumer protections provisions and repeals the Public Utility Holding Company Act of 1935, which was established to protect consumer from market abuse. Keeps greenhouse gas reporting voluntary for at least five years but includes a trigger mechanism. Both bills contain provisions to double authorization for Low Income Housing Energy Assistance Program. Key member of Senate include Bingaman (NM). Key members of House include Tauzin (LA).