Washington, DC
December 10, 2004

Mayors and business leaders came to Washington this week to find common ground on economic priorities and concerns as we begin to determine the trust of a new Congress and the second term of our President, George W. Bush.

We continue to emphasize that mayors and business leaders of the metropolitan areas have much in common. Conversations and strategies around making our metro areas more competitive with increased production will lead us to bring a set of common bipartisan action agenda items to our 73rd Winter Meeting here in Washington January 17-19.

This week's meeting is just one month since our Presidential election is ended. What we are trying to do is to get the national and the media to realize is that the election is over and we must now focus on what is working in America. This week's discussion between mayors and business leaders was not about red states or blue states. It is about green metropolitan areas of the nation. And when I use the word green, I do not use it as the color of green is used to signify a healthy environment. I use green to mean to say it is all about money. Our metro reports continue to show that the metro economies are driving the national economy. Our best practices continue to show that mayors and metro business leaders are working together to make their economies stronger increasing their gross metropolitan product which in many cases affects the economy of two or even three states in the Union.

As we move forward, mayors and business leaders are looking for friends, allies, and coalitions as they face a turbulent political atmosphere here in Washington that may produce funding challenges to established partnerships and initiatives that have proven to be most beneficial to our cities, our metro economies and the nation. That's a nice way of saying we have to be on guard to make sure President Bush's budget proposals and Congressional action on these initiatives reflect our priorities. Hence, mayors and business leaders, together, will work in a defensive manner to protect what is on the books now and has proven to be a successful partnership. An example of one program that might take a big hit is the Community Development Block Grant Program that has proven to be most successful since its inception in 1974.

The tax code, too, is about to be put on the table again. Over the past few weeks since the President won reelection, Washington news reports show trial balloons going up regularly indicating this change or that change. Some of the proposed changes concern many within the business community and of equal concern to mayors. Therefore, we must focus on any tax changes that would hamper economic growth so needed in our metro areas of the nation. Those proposed tax changes were discussed in our meetings here this week and no doubt we will continue these discussions and make sure that business leaders and mayors come together to protect us from economic harm that may come to us in the name of tax reform.

We are also focusing mayors and business leaders joining with Congress and the White House on some new initiatives. Brownfield redevelopment has the support of President Bush and many Republican leaders in Congress. We will work as we go forward to solidify common ground issues and work toward partnerships. The goal is to provide new tools, either through tax incentives or investment that will produce new economic development through the redevelopment of brownfield properties in our metro areas.

The surprising development at our meeting this week was how the reform became the central question of those assembled. David Lereah, Chief Economist of the National Association of Realtors, expressed deep concern over the ramifications of abolishing the mortgage interest deduction and other provisions that are important to our economic growth. Other concerns were also expressed, and Gary Mayor Scott King termed tax reform proposals he is hearing about that really would be nothing more than a tax shift down to the local level. At the press conference of mayors and business leaders, Marc Morial, President and CEO of the National Urban League, said we look at the discussion of the tax code as an opportunity to find new ways to use changes in the tax code to benefit our cites and our people. Columbus (OH) Mayor Mike Coleman stressed the link and bonding that is taking place between our public CEOs, mayors and private CEOs, business leaders. Dearborn Mayor Michael Guido expressed optimism over the way business leaders and mayors will be working together as we move our agenda forward.

Next week, President Bush will hold his economic summit and tax simplification and tax reform will be on his agenda. Guido respectfully requested Ruben Barrales, White House Director of Intergovernmental Affairs and Deputy Assistant to the President, that local elected officials be "at the table" for the White House Economic Summit next week.

During the coming weeks, we will monitor any tax reform proposals that affect us so that you can be up-to-date in the event we might have to call on you to be active on this issue.

Washington Winter Meeting: January 17-19, 2005

It is clear that our Investment Summit has brought out a whole new set of issues that Conference President Plusquellic will bring before you next month at our Washington Winter Meeting. It is most important we have you here during this transition period when so much is at stake for our cities.

Please register now by contacting Carol Edwards in Convention and Meeting Services at 202-293-7330 for information and registration.

A Gift: Jonah Jason Cochran

The greatest gift, the birth of a child, my seventh grandson arrived December 5. His name is Jonah Jason Cochran and his father is my oldest son, Tom, born 42 years ago. Jonah's mother, Donna Jason and Jonah are sound and healthy and happy in their home in Calabasas, California. Jonah weighed in at 8 pounds, 1 ounce and measured 21 inches long.

Carlotta and I are blessed with nine grandchildren, 7 boys and 2 girls.

WELCOME MR. JONAH JASON COCHRAN.

As we approach the Holiday Season, I wish all of you a joyous and happy holiday season.