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President Obama Says State, Local Governments "May Need More Help from Federal Government"

By Ed Somers
December 7, 2009


Debate continues in Washington as to the size and shape of a new job creation package, as well as if and when the bill will move forward.

House leaders are considering moving a bill through the floor before the scheduled December 18 recess, with the Senate indicating that they would more likely act in January after they finish action on the health care bill.

With these discussions taking place on capitol hill, the White House hosted its jobs summit on December 3. Of the approximately 130 participants, the White House invited five mayors from across the country to attend the meeting and discuss priorities in break out panels:

  • Des Moines (IA) Mayor Frank Cownie – Infrastructure

  • Detroit (MI) Mayor David Bing – Encouraging Business Competitiveness and Job Creation

  • Fresno (CA) Mayor Ashley Swearengin – Preparing Workers and Strengthening Main Street

  • Allentown (PA) Mayor Ed Pawlowski – Small Business Job Growth

  • San Antonio (TX) Mayor Julián Castro – Innovation and Green Jobs

While President Obama stressed that the federal budget deficit must be addressed and that a large second stimulus bill should not be expected, there was substantial discussion during the general session and breakout panels on the need for more investment directly in cities and metro areas through key investment programs, as well as the possible need for targeted fiscal relief for both states and local governments.

Cownie, who chairs The U.S. Conference of Mayors' Metro Economies Committee and is a leader for the organization on the jobs initiative, addressed this issue directly with President Obama in the public forum and received acknowledgement from the President saying that, "If you see a complete collapse in state and local government spending on basic needs, that could create a very bad business climate…"

As the President said during the discussion, the American Recovery and Reinvestment Act (ARRA) provided billions in fiscal relief for states through Medicaid and education programs. However ARRA, did not provide general fiscal relief directly to cities.

Mayors' Agenda

Coming out of its Fall Leadership Meeting in Seattle in early October, the Conference of Mayors has been pushing for a focused jobs package that includes:

  • Targeted Fiscal Relief for High Unemployment Cities and Metro Economies

  • The Energy Efficiency and Conservation Block Grant Program (EECBG)

  • The Community Development Block Grant (CDBG) Program at Inflation Adjusted Dollars

  • The COPS Program

  • Summer Youth Jobs – 2010

  • The TIGER Grant Program – Round II

  • School Construction

  • Small Business Access to Credit

  • City Access to Treasury/TARP Credit

The mayors attending the White House Summit highlighted the need to ensure that more of the funding under the next jobs bill goes directly to local governments than under ARRA to ensure that jobs are created quickly.

In addition, the White House discussion covered topics such as increasing investment through the creation of infrastructure bank, increasing job readiness training (including the summer youth program), creating green jobs and reducing energy usage, and increasing small business access to credit.

Following the Summit, President Obama traveled to Allentown where Pawlowski hosted the President at a local jobs forum.