Congress Finds Path to Replenish Disaster Relief Fund, Avert Shutdown

Labor-HHS Bill Includes Policy Change Favorable to Communities

NLC Report Outlines Cuts to Jobs, Infrastructure as Fiscal Conditions Worsen

Outlook for Transportation Authorization Moving Forward

Task Force Urges DHS to Reform Secure Communities

FEMA Releases National Disaster Recovery Framework

NLC Supports Rural Development Programs in 2012 Farm Bill

Advance Conference Registration ends Today (9/30)

With FEMA's announcement this week that the agency has sufficient funds to make it into the new fiscal year, Congress found a path to avert a government shutdown and to replenish the Disaster Relief Fund. On Monday, the Senate passed a continuing resolution (H.R. 2608), which will keep the government running at near level funding for an additional six weeks and provide $2.65 billion in funding for individuals, states, and local governments impacted by disasters. The House is expected to pass H.R. 2608 early next week.

FEMA's announcement came after NLC released a statement urging Congress to honor its commitments and replenish the Disaster Relief Fund without offsets, explaining that "Americans should not have to choose between rebuilding their communities and rebuilding the American economy." FEMA has only been funding immediate disaster needs since August due to a shortage of funds. This has delayed more than $400 million in local recovery projects in communities hit by earlier disasters. 

Labor-HHS Bill Includes Policy Change Favorable to Communities
Neil Bomberg, bomberg@nlc.org, 202.626.3042

On Thursday, the Senate Appropriations Committee passed the Labor, Health and Human Services and Education (Labor-HHS) Appropriations bill (S. 1599). The bill included a change to the Workforce Investment Act program and would restrict the amount of funds states could retain for program administration to five percent. NLC supports this change because it will help ensure that additional workforce development funds reach local communities, where the services are needed the most. (See letter to Committee Chairman Harkin and Ranking Member Shelby)

The bill reflects an overall cut in spending to Labor-HHS programs consistent with the limits set in the Budget Control Act of 2011 (debt deal) but a few programs would see increases should the bill become law.   Title I of the Elementary and Secondary Education Act would be funded at $15.7 billion (an increase of $1.2 billion over last year) and the Individuals with Disabilities Education Act would be funded at $12.6 billion (a cut of only $200 million). The Workforce Investment Act-a program that the House has targeted for elimination-would be funded at $2.7 billion, $200 million less than last year. The Low Income Home Energy Assistance Program would be subject to a significant cut, funded at $3.6 billion (down $1.1 billion from last year).

The House Labor-HHS subcommittee released a draft of its bill yesterday, and it awaits subcommittee action. Under normal circumstances, the Senate bill would move to the Senate floor for consideration. However, the end game for spending bills in this Congress is still unknown.

This week, NLC released its annual City Fiscal Conditions report. The data show that cities continue to cut personnel and delay-and in some instances forego altogether-infrastructure projects as the economic downturn continues to take its toll on city finances.

According to the report, general city revenues are continuing to fall, with a projected decrease of 2.3 percent by the end of 2011. This is the fifth straight year of declines in revenue, with probable further declines in 2012.

Some key findings:

• Confronted with revenue shortfalls, budget cuts, and state aid cuts, more than half (57 percent) of city finance officers report that their cities are less able to meet financial needs in 2011 than in 2010;

• Property tax collections are expected to decline by 3.7 percent in 2011, with further declines likely in 2012 and 2013;

• Income tax receipts are also experiencing a decrease, down 1.6 percent. Sales tax receipts remained largely flat, but at last year's level which saw the worst decrease in sales tax revenue in 15 years; and

• Nearly three-quarters (72 percent) of cities are cutting personnel, 60 percent are delaying infrastructure projects, 41 percent are increasing service fees, and one in three (36 percent) report modifications to employee health care benefits.

Outlook for Transportation Authorization Moving Forward
Leslie Wollack, wollack@nlc.org, 202.626.3029 

As NLC reported in the September 16 edition of the Federal Relations Update, Congress averted another crisis over transportation spending and voted to extend both surface transportation and aviation programs until early next year. The President signed the short term extensions-number 22 for airport programs and the eighth for highway and transit programs-into law, however the larger, long-term issues remain for Congress to resolve. Through the "clean" extensions, Congress avoided earlier controversies, such as the initial failure to reach agreement on the FAA extension that halted authority to collect federal airport taxes and furloughed 4,000 FAA workers for two weeks.

Last week, House Transportation Committee chairman John Mica (R-FL) indicated that House Republican leaders had agreed to keep transportation spending level with current spending of $42 billion per year, despite the House-passed budget and transportation appropriations measures which proposed to cut the program by 34 percent to keep spending in line with receipts from gas tax revenues. To do so will require additional sources of revenue, which Mica indicated will not come from a gas tax increase. The actual revenue source is undetermined at this time. Mica said he hopes to move forward with the six-year transportation spending proposal that Republicans on the Transportation Committee had endorsed, which would collapse funding for many current programs into one pot and turn much of the decision making over to the states, before the end of the year.

In the Senate, Environment and Public Works Committee Chair Barbara Boxer (D-CA) and top Republican James Inhofe (R-OK) continue to support a two-year surface transportation proposal that keeps spending at current levels, which would require an additional $12 billion in revenue to keep up with Highway Trust Fund levels. The Committee released a brief summary of the proposal, but has not since released further details. The Committee hopes to act on its bill sometime in October.

Task Force Urges DHS to Reform Secure Communities
Mitchel Herckis, herckis@nlc.org, 202.626.3124 

Last week, the Department of Homeland Security's (DHS) Task Force on Secure Communities released a report urging reforms to the immigration check program. Under Secure Communities, fingerprints of persons arrested by state and local law enforcement agencies, which are routinely submitted to the FBI for criminal justice database checks, are automatically checked against the DHS immigration databases. The program is currently operating in 1,595 communities across 44 states but will become mandatory in all jurisdictions starting in 2013.

In the report, the task force relayed the concerns of state and local law enforcement and other officials regarding the program's implementation. They urged Immigration and Customs Enforcement (ICE) to considerably improve the "parameters and functioning of the program and accurately relay this information" to jurisdictions. Further, the task force urged ICE to improve transparency and to collaborate with state and local governments, as well as to clarify the goals and objectives of the program. The task force also stressed the need for better prioritization of deporting those who pose a risk to public safety or national security, and greater controls and accountability for civil rights and civil liberty violations.

FEMA Releases National Disaster Recovery Framework
Mitchel Herckis, herckis@nlc.org, 202.626.3124 

Last week, FEMA released its National Disaster Recovery Framework, which is intended to guide how the federal government collaborates with state, local, and tribal governments in recovering from disasters. It is the first of several frameworks FEMA will publish under a presidential order on national preparedness known as Presidential Policy Directive 8 (PPD-8) that aims to strengthen the resiliency of the nation.

The framework, created with input from key intergovernmental partners, including NLC, is intended to be flexible and serve as a concept of operations. It reflects many NLC principles, as it stresses local leadership and control with support from state and federal coordinators. The framework defines core recovery principles, roles and responsibilities of stakeholders, a coordinating structure to facilitate collaboration and communication, guidance for pre- and post-disaster planning, and the process by which communities can capitalize on opportunities to rebuild. It also establishes key coordinating personnel at the federal state and local level.

NLC Supports Rural Development Programs in 2012 Farm Bill
Stephanie Spirer, spirer@nlc.org, 202.626.3030 

Last week, NLC and other members of the Campaign for Renewed Rural Development sent a letter to the leadership of the House and Senate Agriculture Committees expressing support for rural development programs in order to create jobs and promote economic growth in rural America as Congress begins to work on drafting the 2012 Farm Bill.

The Campaign is coordinating the efforts of a wide array of rural stakeholders in support of six principles to strengthen the U.S. Department of Agriculture's efforts in rural development:

1. Clarify the mission of USDA Rural Development;

2. Provide flexibility and incentives for regional collaboration;

3. Maintain rural development investments;

4. Maintain and improve technical assistance;

5. Improve metrics and accountability; and

6. Streamline application and reporting processes.

NLC and the coalition will continue to meet with members of Congress to educate them on the need for increased access to capital, infrastructure financing, and support services for rural cities, towns and villages.

Advance Conference Registration ends Today (9/30)
Janice Pauline, pauline@nlc.org, 202.626.3102 

Today marks the deadline to register for the Congress of Cities and Exposition at a reduced rate; beginning on October 1 the rates will increase to the standard conference level. Click here to submit your registration information online and to find additional information about housing, transportation, mobile workshops, and leadership training opportunities.

The conference, taking place from November 8-12 in Phoenix, Arizona, will feature a restructured format to allow for more in-depth exploration of the most pressing challenges facing cities. Four concurrent tracks will be featured: Your City's Families, Green Cities, Economic Development, and Infrastructure. Each of these conference tracks will incorporate keynote speakers, workshops and peer networking sessions.

In addition, as Phoenix is serving as the host city for the conference, NLC will explore the impact that immigration has on communities and constructive local action in cities across the country across all conference programming. NLC will have an opportunity to highlight the need for comprehensive immigration reform at the federal level.

Be sure to visit the main conference website at www.nlccongressofcities.org, where along with registration information, NLC will continue to post the latest news on speakers as well as schedules and agendas.