INSIDE WASHINGTON/Locals despair over domestic spending

Next month, the House and Senate Budget Committees are expected to approve a 2004 budget resolution that closely resembles President Bush’s budget blueprint, which calls for large cuts in domestic spending. Local government leaders say Bush’s budget does not address critical spending needs for social programs in a time when cities and counties are trying to cope with a sputtering economy.

Bush delivered his $2.23 trillion budget, which calls for increased defense spending, to Congress last month. The President’s goal to hold the line on domestic spending shifts an even greater financial burden back on city and county governments that are already struggling to absorb new homeland security expenses.

The President’s budgetary goals are not a surprise to local officials, as the administration copes with Iraq and the growing unrest abroad. But local leaders criticize the plan for failing to adequately fund critical domestic programs. “At a time when city budgets are severely pinched by the weak economy and significant homeland security investments, the President’s budget contains no general economic assistance for states and cities,” says Boston Mayor Thomas Menino, president of the Washington, D.C.-based U.S. Conference of Mayors.

While domestic funding has been held at current levels in many cases, in others, Bush has called for deep cuts, consolidation and elimination of some favored programs. For example, he proposes cutting the COPS program by 77 percent, from $738 million in fiscal year 2002 to $164 million in FY 2004. The program provides funding for local governments to hire new police officers and helps to pay for other law enforcement expenses. Bush wants to eliminate the hiring portion of the COPS program.

The President also asks Congress to combine the Local Law Enforcement Block Grant and the Byrne Formula Block Grant into a new Justice Assistance Grant Program. The administration then proposes funding the new block grant at $586 million, $414 million less than what the two programs were separately funded in 2002.

Even though several housing initiatives, including the HOME Investment Partnership, would receive funding increases, others are slated for extinction. Bush suggests eliminating HOPE VI, a distressed public housing program, and the Community Development Loan Guarantee, which funds economic development initiatives.

To draw attention to their plight, city and county leaders will aggressively lobby Congress this month to urge an increase in domestic spending above what the President seeks. The National Association of Counties and the National League of Cities (NLC), both Washington, D.C.-based organizations, as well as the U.S. Conference of Mayors are encouraging local lawmakers to contact their congressmen to lobby for increased domestic funding. NLC also will deploy local officials to Capitol Hill on March 11 as part of its City Lobby Day.

But lobbying Congress is not the only way in which local leaders are trying to fight the budget battle. NLC has released a detailed economic stimulus plan that it says would help jump-start the economy. The organization proposes a $145.5 billion stimulus plan that includes a $75.5 billion short-term stimulus package to boost consumer spending, a $50 billion stopgap measure to help states meet budget shortfalls and a $20 billion infrastructure investment plan.

Hoping to attract attention outside of Washington, D.C., the U.S. Conference of Mayors held an economic forum last month in Manchester, N.H., the site of the nation’s first presidential primary. Menino acknowledged the organization held the forum in New Hampshire because its voters are very influential with lawmakers interested in running for the White House.

The author is Washington correspondent for American City & County.