NLC members encouraged to lobby Congress on city issues during August recess.

NLC legislative priorities for the 111th Congress of economic recovery, transportation, health care reform and climate change continued to dominate the Congressional agenda as lawmakers returned home for the August recess. Local leaders are encouraged to talk to their representatives over the recess to reinforce local concerns.

Energy

The Senate Environment and Public Works Committee began a series of hearings on the impact of climate change, including transportation's role in reducing greenhouse gases, before leaving for the recess.

The committee is still-drafting the companion bill to the American Clean Energy and Security Act of 2009 (H.R. 2454), which narrowly passed the House on June 26.

In a letter to the committee, NLC continues to advocate for dedicated funding for the Energy Efficiency and Conservation Block Grant and energy efficient transportation solutions, as well as funding for local adaptation projects. As members of Congress are in their home districts for the August recess, please express your support for funding these programs through the anticipated cap-and-trade revenues.

Also in June, the Senate Energy and Natural Resources Committee approved a comprehensive energy reform bill. The bill will likely see Senate floor action in the fall, when it will be combined with climate change legislation that the Senate Environment and Public Works Committee is currently developing.

Transportation

Before leaving Washington, lawmakers agreed to transfer $7 billion in general Treasury funds to cover the shortfall in the federal Highway Trust Fund, providing a temporary fix to a potential slowdown in federal transportation dollars for states.

The federal Highway Trust Fund supports all federal surface transportation programs and is funded through federal gasoline taxes.

The $7 billion patch is expected to last only through September and sets up another opportunity for House transportation leaders to continue to push for a six-year transportation bill rather than the 18-month extension favored by the Administration and already passed in the Senate Committees on Environment and Public Works, Commerce and Banking.

The current authorization for federal highway, transit and bridge programs will expire on September 30. The proposal offered by House Transportation Committee leaders James Oberstar (D-Minn.) and Peter DeFazio (D-Ore.), which was adopted by the Highway and Transit subcommittee, would double current spending on federal transportation programs but does not include a new funding source.

The current source, the federal gasoline tax, is insufficient to meet currently authorized needs. At a recent heating before the House Ways and Means Committee, transportation leaders proposed a series of other potential sources of transportation dollars, although no action was taken.

During the Congressional recess, city officials are urged to press for a comprehensive national approach to transportation, highlighting the innovative role of cities and metropolitan areas and the need for local leaders to have a strong voice in making transportation investment decisions.

According to the National Academy of Public Administration, local governments accounted for one third of revenue devoted to transportation spending programs and the current federal funding structure does not account for the challenges and investment being made in metropolitan areas.

A new federal transportation program should articulate a comprehensive national vision and objectives with realistic performance goals that focus on intermodal connections, streamlined planning and increased flexibility between programs to deliver an integrated national transportation network and provide a strengthened role for metropolitan areas to direct transportation planning and decision making within their region.

Regions--both large and small--need greater authority to program transportation funding, greater flexibility to select projects across all modes and authority for integrated planning across federal, state and local programs to meet national goals of energy efficiency, more affordable housing, reduced transportation costs and promote healthy, safe and walkable neighborhood.

NLC has joined its local government partners to call on Congress to create a formal governance structure, including local elected officials, to strengthen regional transportation and economic development planning for communities outside the boundaries of metropolitan planning organizations that includes transportation, water and sewer infrastructure and workforce development programs.

The structure should also support the work of joint Environmental Protection Agency-Department of Transportation-Housing and Urban Development agreement on coordinated planning on federal transportation, environmental protraction and housing investments that will support more efficient use of resources and result in better decisions.

Health Care Reform

Caught up in disagreements between liberals and conservatives, Democrats and Republicans, and an American public that is increasingly concerned about the ramifications of health care reform, work continued on the health care reform efforts championed by the President as Senate and House committees tried to make their way through the complex process of drafting and approving legislation. See story, page 1.

Just before beginning the August recess, the House Energy and Commerce Committee, one of three committees that must approve a draft bill before it can go to the floor for a full House vote, approved a bill that will now have to be reconciled with the bills of two other committees--the House Ways and Means and Education and Labor Committees--before it can reach the House floor.

The Senate's position is a bit more complicated. One committee, the Senate Health, Education, Labor and Pensions Committee did approve a bill along partisan lines. The other committee--the Senate Finance Committee--has said that it wants to bring forward a bipartisan bill, but Republican and Democratic members have not been able to reach an agreement.

NLC is urging city officials to meet with their representatives and senators over the August recess and to let them know that America's cities and towns want them to complete this important work, and that as they do they should be focused on four principles.

The first is access for all Americans to affordable and adequate health care. The second is to reduce the rate of growth in health care costs because the costs to families, cities, towns and Americans in general are not sustainable. The third is that the cost of health care reform should not be placed on the backs of local government. Finally, America's cities and towns should be able to avail themselves of the same health care programs and services as individuals and the private sector.

Housing

The housing market continues to be uncertain, with significant regional differences in foreclosure rates. However, mortgage foreclosures overall continue to rise, suggesting that unemployment is becoming a significant contributor to foreclosures.

According to ReatlyTrac, 1.9 million foreclosure filings were reported in the first six months of 2009, a 15 percent increase of the same period in 2008.

In July, House Financial Services Committee Chairman Barney Frank expressed disappointment that so few mortgage servicers are participating in the government's Home Affordable Modification Program, which was designed to help-struggling homeowners restructure their mortgages. Frank cautioned that, unless participation increases, Congress would reconsider "mortgage cram down legislation," which .would permit bankruptcy judges to modify mortgages on primary residences. The mortgage industry remains opposed to. such a bill.

Criminal Justice

While both the Senate and House have introduced several bills aimed at targeting gang crime, key philosophical differences in approach have stalled any quick action.

Despite urgings by NLC to find common ground, a continuance of disagreements in approach between supporters of the YOUTH Promise Act (H.R. 1064, S. 435) and the Gang Abatement and Prevention Act (S. 132) continue to stall action on this crucial issue.

In the meantime, Senator Jim Webb (D-Va.) has been coalescing support for the National Criminal Justice Commission Act (S. 714), which would establish a commission to undertake a comprehensive review of the criminal justice system--ranging from prevention techniques before police get involved, through arrest, sentencing, prison, and ultimately reentry into society.

NLC and key allies have been working closely with Senator Webb's staff to ensure that local government's crucial role in criminal justice is represented on the commission and reflected in the legislative goals.

Homeland Security

The Department of Homeland Security (DHS) is leading a national dialogue as part of the Quadrennial Homeland Security Review (QHSR) that will shape the department's agenda over the next four years. QHSR is a Congressionally mandated review that the Secretary of Homeland Security must provide to Congress by the end of the year.

Last week, DHS launched www.homelandsecuritydialogue.org to host three interactive Web-based dialogues. Each dialogue will build on the previous one, allowing participants to view and comment directly on proposed elements of the review before they are made final.

The first dialogue occurred August 3-9, but additional sessions are slated for August 31September 6 and September 28-October 4. NLC urges local officials to weigh in on how intergovernmental coordination can best keep communities safe.

Congress returns after Labor Day to a full plate of issues. Local issues will continue to dominate the agenda.

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