Building liveable cities for NC’s future.
News Archives
ltColExample
Our Mission
To promote strategies to advance North Carolina’s urban centers.

CITIES IN OUR COALITION

Posts Tagged ‘White House’

Oberstar stymied on transit bill (Politico)

Monday, May 17th, 2010

Oberstar stymied on transit bill (Politico)

It was supposed to be a career-defining moment for Rep. James Oberstar (D-Minn.). He finally held the gavel of the House Transportation and Infrastructure Committee, after four decades of waiting and had a like-minded president in office to help enact his sweeping vision for highways and public works.

But Oberstar was cut down before he even got started. Hours after he began circulating his plan last spring for a six-year, $500 billion investment in roads and rail, Transportation Secretary Ray LaHood simply called for an extension of the 2005 highway bill — effectively cutting off long-term expansion plans.

“That was the beginning of a less-than-good working relationship,” said John Horsley, executive director of the American Association of State Highway and Transportation Officials.

The relationship soured from there, as a frustrated Oberstar slammed White House economic advisers “who never had a shovel in their hands or a callus on their fingers.”

So, while the nation’s infrastructure continues to age and crumble, Washington is stuck with a neutered transportation chairman, a White House distracted by more pressing issues and congressional leaders who lack the political will to raise gas taxes for a new $500 billion measure. And Oberstar is left without the incredible power that once came with a Transportation chairmanship — picking and choosing where to send billions in highway pork.

“I don’t know why they [the White House] don’t want to move forward” on a new highway bill, Oberstar’s top lieutenant, Rep. Peter DeFazio (D-Ore.), lamented in a recent interview. “Somewhere in the bowels of the White House economic team, they said, ‘Hey, we don’t want to deal with transportation.’”

For the Obama administration, deep-sixing the bill was a political necessity, because raising the gas tax is a nonstarter in an election year. And until Oberstar or another lawmaker can find a viable alternative method to raise the $200 billion plus needed to fully fund his legislation, it is likely to stay stuck in no man’s land.

That leaves the entire transportation industry, from bridge builders to bike boosters, waiting in vain for a breakthrough that might jump-start Oberstar’s efforts. Meanwhile, stimulus infrastructure dollars have not stopped construction unemployment from topping 20 percent, and some insiders are bracing for a funding impasse that lingers indefinitely.

“There has to be some way for all of the disparate interests to get together and try to motivate action on this,” said Janet Kavinoky, chief infrastructure lobbyist of the U.S. Chamber of Commerce. “Because regardless of what you’re looking for, you won’t be able to achieve that until the priority is put on transportation.”

Despite his complaints about the administration’s lack of attention to his main issue, Oberstar remains at a loss for how to pay for his bill without a gas-tax hike.

“Right now, we’re looking at bake sales,” quipped his spokesman, Jim Berard.

Oberstar explained in an interview that his broadsides at the administration were intended “to push them” toward a deal on a long-term bill. He’s gotten nowhere.

“They’ve sat down to talk with us, but they don’t have a plan for financing the future of transportation,” he said.

Some of Oberstar’s biggest K Street allies are also having trouble lining up support for the legislation. Rank-and-file lawmakers still do not know how much transportation money their states would get under Oberstar’s plan, and while the Senate recently has made progress on its version, the upper chamber is no closer than the House to finding new funding.

“We have to get out of the expectation that there’s going to be some magic moment where there’s an epiphany about financing,” said Dave Bauer, senior lobbyist for the American Road & Transportation Builders Association. If the political will to pass a transportation bill depends on finding the funding, Bauer warned that the result could be “a circular, never-ending process.”

Oberstar is hardly the first transportation committee chairman to face stop signs from his own party. The late Rep. Bud Shuster (R-Pa.) mounted a PR campaign to help pass his 1998 highway bill over the objections of House Republican leaders, and GOP Rep. Don Young of Alaska was forced to relent on the size of his 2005 bill after the Bush administration rejected his call to raise gas taxes.

But Oberstar lacks the bare-knuckled political instincts of Shuster and Young, relying instead on his famous policy acumen to get things done.

“He’s not a wheeler-dealer kind of guy,” a veteran transportation advocate said of Oberstar.

For now, Oberstar — and the entire transportation industry — is in limbo wondering whether the $500 billion bill will get a serious look this year.

“Not over the indifference and even opposition of an administration,” said former Sen. Slade Gorton (R-Wash.), co-chairman of the Bipartisan Policy Center’s infrastructure reform project.

The White House, while aligning with Oberstar’s policy reforms, is still looking to put off the new bill until spring 2011. LaHood “shares Chairman Oberstar’s goal,” spokesman Olivia Alair wrote in an e-mail and is working on “a set of principles that we hope will bring us closer” to a new bill.

But with Democrats expected to lose a significant number of seats in the midterm election, Oberstar will have a diminished committee — or may even be forced to hand over the gavel to ranking Republican Rep. John Mica of Florida.

For his part, Mica is sympathetic to the administration’s reluctance to engage on a six-year bill until supporters of a tax increase — whom he described as “smoking the funny weed” — find an alternative.

“They are probably politically correct in not moving forward,” Mica said in an interview. “Probably Mr. Oberstar needs to be a little more flexible.”

By: Elana Schor
May 17, 2010 05:23 AM EDT

The President’s FY2011 Proposed Transportation Budget

Tuesday, February 2nd, 2010

The President’s FY2011 Proposed Transportation Budget

Read the summary here. 

Metro Mayors Chairman Bell at White House Christmas Party (News and Observer)

Friday, December 18th, 2009

Marshall at White House (News and Observer)

Democratic U.S. Senate candidate Elaine Marshall attended a White House Christmas Party Tuesday night.

Marshall, who is North Carolina’s secretary of state, was among hundreds of state officials from across the country who were invited.

Other Democratic North Carolinians attending included state Rep. Verla Insko of Chapel Hill, state Rep. Pricey Harrison of Greensboro, Durham Mayor Bill Bell and state Treasurer Janet Cowell.

So that means on Tuesday, three North Carolina Senate candidates were having some sort of interaction with President Barack Obama: Republican U.S. Sen. Richard Burr was appearing at a rally to protest the president’s health care plan, Democratic candidate Cal Cunningham was taking a call fromObama in his hometown in Lexington, and Marshall was attending a White House party.

Obama Focuses on Jobs, Infrastructure, Energy Rebates (Wall Street Journal)

Tuesday, December 8th, 2009

Obama Focuses on Jobs, Infrastructure, Energy Rebates (Wall Street Journal)
‘Urgent Need’ to Boost Job Growth in Short-Term, President Says

WASHINGTON — President Barack Obama proposed small business tax cuts, home retrofits and infrastructure investment as ways to accelerate job growth Tuesday, saying more programs are needed to boost the weak labor market and ensure the recovery takes hold for Main Street.

In a major speech at the Brookings Institution, Mr. Obama said he also wants to extend fiscal stimulus programs that would provide unemployment insurance for out-of-work Americans and help laid-off workers keep their health insurance.

Additionally, the White House wants to provide $250 payments to seniors and veterans and act on measures that could help local governments keep teachers and police officers employed.

To help pay for the measures in a time of soaring budget deficits, Mr. Obama highlighted the federal government’s $700 billion financial-rescue fund — an emergency bailout program he described as flawed but necessary. He said TARP has served its purpose and that it’s time to end the controversial program.

“With a fiscal crisis to match our economic crisis, we also must be prudent about how we fund” these job measures, he said. “So to help support these efforts, we’re going to wind down the Troubled Asset Relief Program, or TARP — the fund created to stabilize the financial system so banks would lend again.”

The White House is considering using some TARP funds to pay for some of its job-creation ideas. At the same time, it says TARP losses are smaller than expected, which will also help pay down the deficit faster than the administration initially thought.

“These have been a tough two years. And there will no doubt be difficult months ahead,” said the president. “But the storms of the past are receding.”
Pointing to better-than-expected job market data last week, the president said the economy is on the right track. But more steps are needed to make sure that job growth matches up with economic growth, he said.

“Even though we have reduced the deluge of job losses to a relative trickle, we are not yet creating jobs at a pace to help all those families who have been swept up in the flood,” he said. “There are more than seven million fewer Americans with jobs today than when this recession began. And it speaks to an urgent need to accelerate job growth in the short term while laying a new foundation for lasting economic growth.”

The president’s speech comes just days after a jobs summit at the White House, where chief executives and nonprofit groups offered up solutions to the nation’s unemployment challenges.

Tax cuts are a key part of Mr. Obama’s plans, primarily those aimed at small business. The White House, for instance, announced plans to work with Congress to create a short-term tax incentive to encourage small-business hiring.

The president also proposed a one-year elimination of the tax on capital gains from new investments in small business stock. The American Recovery and Reinvestment Act of 2009 — the fiscal stimulus program Congress passed earlier this year — had allowed a 75% exclusion from capital gains taxes on small-business investments.

Other proposals include:
 An extension through 2010 of stimulus provisions that allow small businesses to immediately expense up to $250,000 of qualified investment.
 An extension of fiscal stimulus policies that accelerate the rate at which business can deduct the cost of capital expenditures. The White House says that provision will put more than $20 billion in the hands of businesses in 2010, while enabling the Treasury to recoup much of the funding as businesses regain their strength.
 Eliminating fees and increasing guarantees for small businesses that borrow through Small Business Administration programs next year.

—Corey Boles contributed to this article.
Write to Maya Jackson Randall at Maya.Jackson-Randall@dowjones.com
DECEMBER 8, 2009, 1:21 P.M. ET
By MAYA JACKSON RANDALL

Why big city pols are frustrated with Obama’s agenda—and why statehouses love it (The Atlantic.com)

Wednesday, December 2nd, 2009

Why big city pols are frustrated with Obama’s agenda—and why statehouses love it (The Atlantic.com)

During the Great Depression, Franklin Delano Roosevelt frequently entertained his friend and fellow New Yorker Fiorello La Guardia, the mayor of New York City, at the White House. La Guardia would tell the president a “sad story” about some project he wanted funded and Roosevelt would buckle: “Tears run down my cheeks and the first thing I know he has wangled another $50 million.” La Guardia was manipulative and self-serving, but he also helped guide a policy that proved critical to beating the Depression. Roosevelt’s economic agenda succeeded in large part as an urban agenda. Over time, mayors became darlings of the White House and their lobbying arm, the Conference of Mayors, dedicated itself to promoting New Deal endeavors in exchange for federal largesse.

Today’s mayors enjoy the same access to President Obama as their predecessors did to FDR, but so far they’re seeing different results: deteriorating urban conditions and a stimulus package adapted to the needs of state governors. Interviews with eleven mayors from across the country reveal that big-city chiefs are waiting anxiously to see whether the first big-city president in decades will treat cities as central to his agenda.

Last summer, when Obama was still on the campaign trail, he seemed eager to listen. At a June 2008 speech to the Conference of Mayors, he pledged to create the first urban policy office in the White House. The mayors of Minneapolis, Denver, and Dallas all consulted with Obama’s team as early as October 2008, reminding the candidate that cities provide the vast majority of American jobs and produce the bulk of its GDP.

These arguments won mayors a candid and bipartisan relationship with the White House. Oklahoma City Mayor Mick Cornett, who heads the Republican Mayors and Local Officials coalition, regularly chats with White House Chief of Staff Rahm Emanuel, Vice President Joe Biden, and other top administration officials. “I don’t think they would have spent their time talking to me if they didn’t really care what I thought,” he says. Another Republican mayor called certain energy grant applications “crap,” a comment he still marvels at making to the country’s second-in-command.

In the midst of this promising dialogue, however, the economic crisis has taken a firm hold. A September survey of city budget officers warned that “the nation’s cities will most likely still be realizing the effects of the current downturn in 2010, 2011, and beyond.” Unemployment rates are above 10 percent in almost a third of metro areas—as high as 16 percent in cities like Detroit and Flint—and service cuts and layoffs are likely. Reacting to these conditions, voters earlier this month sacked at least one incumbent mayor, Seattle’s Greg Nickels, and gave an unexpected scare to another, New York City’s Michael Bloomberg.

Now mayors are pointing out that the stimulus package was supposed to help cities avoid this nightmare scenario. During the bill’s conception, mayors stressed that a state-focused stimulus would bring slow, inefficient results, and that more jobs could be created if money were funneled directly to urban areas. In a report issued last winter, the U.S. Conference of Mayors listed more than 15,000 “ready-to-go” projects that could provide 1.2 million new jobs in just two years.

So what happened, exactly? “I think we were listened to,” says Stamford, Connecticut, Mayor Dannel Malloy, who will run for governor of his state as a Democrat in 2010. “I just think we were then ignored. And I don’t think we were necessarily ignored by the president. I think we were ignored by the Congress.” Vice President Biden, the stimulus sheriff, has echoed this explanation. In a September speech on the stimulus, he lamented that “Congress, in its wisdom, decided that the governors should have a bigger input.”

But the White House can’t blame this shift entirely on Capitol Hill. Biden, Emanuel, and other administration officials spent late nights and much political capital shaping the finer details of the stimulus package in ways that thrilled states but disappointed cities. As Brookings scholar Thomas Mann has observed, “Obama’s hands were all over this bill from start to finish. … The nitty-gritty legislative work identifying where and how these decisions could be implemented … was done in Congress with the direct participation of key Obama administration staff.”

Representative Chaka Fattah, chair of the urban caucus in the House of Representatives, acknowledges that Congress privileged states over urban areas when drafting the stimulus bill. “If you had nine dollars missing in social service funds to a city, there would be a call for a grand jury investigation,” he told me recently, contrasting this with the billions of dollars misplaced and largely forgotten in Iraq. “There was a great deal of concern about how to [fund] things that were needed and not end up with headlines that were going to be problematic at the end of the day.”

Though Fattah can list a slew of funding streams in the stimulus package that he says will eventually benefit urban areas, mayors remain skeptical. Trenton Mayor Douglas Palmer jokes that some mayors have “seen money go to building roads where there are more deer than people.” Mayor Cornett is blunter. In his us-versus-them view, “It was either going to be a governors’ stimulus package or a mayors’ stimulus package, and this is a governors’ stimulus package.”

The evidence seems to be on the mayors’ side. In July, The New York Times analyzed the distribution of stimulus money, particularly the $26.6 billion that had been allocated for roads and transportation projects. The federal government left the details up to states, which, the Times noted, “have a long history of giving short shrift to major metropolitan areas.” After looking at approved transportation projects in all 50 states, the authors concluded, “It is clear that the stimulus program will continue that pattern of spending disproportionately on rural areas.” North Carolina state stimulus overseer Dempsey Benton agrees that the federal-state allocation formula “has been a source of frustration,” favoring country roads over urban freeways.

Mayors are hopeful that Obama will eventually turn his attention back to federal urban policy. The president has already made good on his promise to create a White House urban affairs office, a historically significant step for cities. Lyndon Johnson and Jimmy Carter treated urban areas as warrens of poverty and racial conflict that would implode without sufficient attention. Richard Nixon took the opposite approach, espousing a theory of “benign neglect” toward urban problems that set the tone for Ronald Reagan and George H. W. Bush. Even Bill Clinton, widely viewed as a champion of cities, struggled to come up with a workable plan for metropolitan areas. Just a few weeks after the administration issued a national urban policy report, Clinton’s Secretary of Housing and Urban Development Henry Cisneros expressed concern in a memo to the president. “We do not have enough to stand on,” Cisneros wrote frankly, adding, “We can be caught flatfooted by the violent outbreaks which will stem from the anger of the cities.”

Today’s mayors are urging the White House to embrace cities not as problems needing to be solved but as catalysts of long-term economic well-being. “America needs a jobs bill,” Los Angeles Mayor Antonio Villaraigosa told me recently. “There are ways to leverage what cities are doing through federal partnerships that won’t even cost a lot of money up front. We need to be thinking of those creative partnerships.”

So far, the most notable activity of the urban affairs office has been a “listening tour.” The director of the White House Office of Urban Affairs, former Bronx Borough President Adolfo Carrión, has led the tour into three cities over the last five months, meeting with local innovators in each location. “Our mission in developing a new urban policy,” he told me in a statement, “is to make our cities and metropolitan areas more economically competitive and environmentally sustainable, and the critical investments being made through the Recovery Act are helping us achieve those goals.” But as stimulus funds continue to pass their cities by, mayors are looking for more than good listeners. “Listening is not an action. Listening is passive,” says Malloy, the mayor of Stamford. “Action requires definitive steps.” For that, America’s mayors say they are still waiting.

Harry Moroz is a research associate at the Drum Major Institute for Public Policy.
DISPATCH NOVEMBER 30, 2009

White House to Mayor-elect Foxx: Can you take a call? (Charlotte Observer)

Friday, November 6th, 2009

White House to Mayor-elect Foxx: Can you take a call? (Charlotte Observer)

Resting at home a day after he was elected Charlotte’s new mayor, Democrat Anthony Foxx got a call from an aide. Could he take a call from President Obama?

He could.

“He congratulated me,” Foxx said today at his Elizabeth Avenue headquarters. “They were clearly watching this race … and looking at trend lines to see where North Carolina is going.”

Foxx said the president told him to tell him “if there’s anything you need my help with.” So Foxx mentioned the apprehension over the possible loss of the Bank of America headquarters.

“I impressed upon him the real urgency in this area to protect our relationship to the financial services sector,” he said.

Foxx said the conversation lasted a little over five minutes. He also got calls from Obama adviser Valerie Jarrett and S.C. native David Agnew, the administration’s liaison to the nation’s mayors.

“I think Charlotte has the ear of a lot of people that we haven’t had in a while,” Foxx said.
By Jim Morrill
jmorrill@charlotteobserver.com
Posted: Thursday, Nov. 05, 2009

White House Budget To Invest In “Place” Rather Than “People”

Tuesday, October 13th, 2009

New White House Memo: Developing Effective Place-Based Policies for the FY 2011 Budget

The new White House memo (link below) is significant because it went to all executive departments/agencies and was authored jointly by the heads of OMB (Peter Orszag), the Domestic Policy Council (Melody Barnes), the Office of Urban Affairs (Adolfo Carrion), and the National Economic Council (Larry Summers). It is unusual for so many presidential advisors sign onto a policy statement.

Essentially, the document’s five pages describe how the administration plans to begin investing in PLACE again, as opposed to PEOPLE, which has been the focus of federal domestic funding ideas for the past several decades. To drive home this shift in thinking, the document states, “Our immediate objective is to develop proposals for the FY2011 Budget that advance this Administration’s policy priorities in the most effective ways whether by improving place-based strategies already operating or by adopting such strategies…OMB will weigh these questions throughout the process of policy development for the President’s 2011 Budget.”

This is significant because cities are often focused on investing in physical infrastructure or “place.” Perhaps we might see some effects on our cities’ bottom lines from the federal funding level.  Stay tuned. 

Read the full memo here. 

215 north Dawson Street • raleigh, nc 27603 • phone 919.715.7895 •  fax 919.301.1098