NLC Supports Local Jobs for America Act

“I would like to thank the Congressmen for their leadership in sponsoring this vitally important bill,” said Loveridge. “This is a key piece of legislation that comes as cities face the worst of the economic storm, with revenues down and service needs at their highest. The actions of cities are not insignificant, as collectively we are the nation’s fourth largest employer. The economy cannot recover quickly if cities falter, and so federal action now is essential.”

Through a funding formula based on the Community Development Block Grant program, the bill would direct $75 billion to cities, towns and counties to save municipal jobs and prevent layoffs. Of the $75 billion, $52.5 billion would go directly to communities with at least 50,000 residents, and $22.5 billion would go directly to states to distribute to communities with fewer than 50,000 residents. The funds may only be used for compensation of full-time, full-year positions and jobs that are regular government or local community organization jobs, under the proposed legislation.

The bill, which was developed with the input of city officials, will put 1 million people to work by restoring these services in local communities, in both public and private sector jobs. It also includes $23 billion to help states support an estimated 250,000 education jobs; $1.18 billion to put 5,500 law enforcement officers on the beat; and $500 million to hire and retain fire fighters and $500 million for approximately 50,000 additional on-the-job training positions slots to help private business expand employment.

“Cities continue to make the difficult choices of cutting services and furloughing workers,” Loveridge said. “We are now beginning to see cities cut fire and police services — activities essential to the quality of life and safety of citizens in our communities. Traditionally, this is an option of last resort, and only serves to demonstrate the arduous situation facing cities. 

“The central focus and approach of this new legislation is something that we at the National League of Cities have advocated for some time,” Loveridge added. “It will provide much needed assistance to cities as they seek to protect public safety and avoid laying off municipal workers, which would only dig a deeper hole out of which America’s economy would have to climb. It also will help build a foundation for future growth by making available funds to cities that can be used to create useful jobs in both municipal and nonprofit agencies, and in the process put large numbers of unemployed Americans back to work.”

While the nation’s economy may be approaching the late stages of the worst economic downturn since the Great Depression, local government budget tightening and spending cuts over the next several years could well impose a significant drag on the nation’s economic recovery.

According to the latest NLC research brief, issued in January, cities face layoffs, canceled contracts with small businesses and vendors, reduced services and sizable budget shortfalls for 2009 that are expected to grow much more severe and widespread from 2010 to 2012.

This legislation and other jobs bills before Congress will be a focus for NLC at this week’s Congressional City Conference in Washington, D.C. 

Reps. Keith Ellision (D-Minn.) and Phil Hare (D-Ill.), and U.S. Conference of Mayors President Elizabeth Kautz, mayor, Burnsville, Minn., also participated on the conference call to announce the Local Jobs for America Act.