By Dave Gatton
December 7, 2009

U.S. Conference of Mayors Past President Trenton Mayor Douglas H. Palmer told a national audience of economists and fiscal experts that Congress should enact immediately a targeted fiscal assistance program for local governments and fund job'creating programs to address the growing unemployment rates on Main Street America.

Keynoting a major forum on job creation sponsored by the Economic Policy Institute on November 19 in Washington (DC), Palmer said, "We mayors know, and the American people know, the mission has not yet been accomplished on Main Street. Wall Street may be on the road to recovery, but Main Street still suffers."

Palmer cited Long Beach's unemployment rate of 13.9 percent; Las Vegas' rate of 13.4 percent, and 14.9 percent unemployment in Providence (RI) to demonstrate that many center cities have unemployment rates far above that of their metro region's.

He projected that 86 percent of metros next year will have higher average unemployment rates than in 2009—a projection he called devastating.

In 2012, more than 30 percent of our metros will experience unemployment rates greater than nine percent, and one in five metros will still have unemployment rates above ten percent.

The vast majority of our nation's unemployed reside in our metropolitan areas and particularly in our central cities, he told the group.

A report issued by The U.S. Conference of Mayors in November indicates that in Georgia, the Atlanta and Augusta metro areas account for 62 percent of the state's unemployed. Atlanta alone has 57 percent of the state's out'of'work residents.

In Arizona, the Phoenix and Tucson metro areas account for 75 percent of the unemployed. Phoenix alone has 62 percent. And in Michigan, Detroit metro accounts for 50 percent of the state's unemployed.

Palmer indicated that this Administration inherited one of the biggest economic messes in history and, today, because of President Obama's leadership, stability has been restored to our financial institutions and industries that "were too big to fail."

"But now, we must have actions to demonstrate the American people are too important to fail," he said.

Mayors Call to Action

Palmer outlined a Call to Action adopted by The U.S. Conference of Mayors Leadership at its October meeting in Seattle this year, and conveyed to the President and his senior economic advisors following the meeting. A delegation of mayors met with Lawrence Summers and other key White House officials in November to discuss their growing concern about joblessness and solutions to address it.

The Mayors' Call to Action includes support for a targeted fiscal assistance program to local governments that could be used for broad governmental purposes such as hiring or retaining public employees, local public works projects, public safety initiatives, environmental clean up, public facilities, and other public purpose projects.

EPI economist Ethan Pollack also called for such assistance by releasing a report estimating that in 2010 local governments would face a $40 billion budget shortfall.

Mark Zandi, chief economist of Moody's Economy.com, said a second infusion of assistance to state and local governments would serve as a necessary insurance policy against a second recession. He indicated the nation could ill afford to slip back into recession while experiencing double digit unemployment rates and a Federal Reserve that has few tools, i.e., lower interest rates with which to fight another economic downturn. "We don't want to go there," he said.

The mayors' job'creating agenda also calls for additional funding for the Energy Efficiency and Conservation Block Grant program, the Community Development Block Grant program, the COPS program, DOT's TIGER grant program, and Summer Youth Jobs. These programs can directly fund cities and counties and could be moved quickly to local jurisdictions to help create jobs.

The Call to Action also encourages the Obama Administration to develop programs to help address the difficulty small businesses have in obtaining credit, and assisting local governments access credit markets.

Press reports indicate that the House of Representatives could move a second jobs package as early as December 18. In the meantime, President Obama is holding a White House Jobs Summit on December 3 to address the unemployment situation.

U.S. Conference of Mayors Metro Economies Chair Des Moines Mayor Frank Cownie, along with Detroit Mayor Dave Bing, Fresno Mayor Ashley Swearengin, San Antonio Mayor Julian Castro, and Allentown (PA) Mayor Ed Pawlowski, were invited by the White House to participate in the jobs summit.