Talk of new jobs legislation triggers interest-group and lobbying push

The nation’s mayors are pressing lawmakers to send more money directly to cities if Congress passes a second stimulus, arguing joblessness is often concentrated in metro areas.

The lobbying push could reprise an earlier battle with state governors over control of federal dollars.

“Our message is, if you are going to do this, make sure you focus on the cities,” said Tom Cochran, the executive director of the U.S. Conference of Mayors.

It won’t just be governors with whom mayors would have to compete for federal help. Several interest groups are reactivating and dusting off old policy proposals as Democratic leaders in Congress consider another jobs measure to ease unemployment levels.

One focus of the lobbying campaigns is getting an invitation to the White House economic summit that could develop a framework for legislative action, lobbyists said.

The U.S. Conference of Mayors is distributing a “Call to Action” report to Congress this month that details the need for additional federal assistance to cities like Detroit, Las Vegas and Milwaukee, where unemployment rates are 17, 13.4 and 12 percent, respectively.

The report followed a meeting mayors had with White House economic adviser Larry Summers in which they described the need for “targeted fiscal assistance,” money that would go directly to cities and metro areas.

The group estimates that only 0.87 percent of the stimulus funds were provided directly to cities, or about $6.8 billion. Although billions more have reached or will reach urban areas through grants and other formulas, city advocates say more federal help is needed.

“The problem with the stimulus money out there is it did not get into the cities where the unemployment is,” Cochran said. “During Halloween, the unemployment monster was looking everybody in the face.

“Unemployment is killing us,” Cochran said.

A representative from the National Governors Association (NGA) said that governors have worked to spend stimulus money on projects that would have the greatest impact.

“States are doing a very good job of spending the money wisely — that includes in rural areas and urban areas,” said David Quam, NGA’s director of federal relations. He said NGA has yet to take a position on the need for a second stimulus.

The money pie is likely to be far smaller than the $787 billion Congress appropriated in the American Recovery and Reinvestment Act, given concurrent fears about rising deficits.

Democratic leaders have talked about a more targeted jobs package that includes additional unemployment insurance, tax breaks for job creation and aid to states. It is likely to have a transportation component.

The Associated General Contractors (AGC) is lobbying for more transportation money in both a stimulus package and in a new six-year highway bill to provide construction companies greater assurance projects won’t lose funding.

“The construction industry has been the hardest-hit sector in the economic downturn,” said AGC spokesman Brian Turmail.

The group says unemployment in the construction sector is more than 18 percent.

Jeff Shoaf, AGC’s lead lobbyist, said the group is seeking more money appropriated through the Transportation Investment Generating Economic Recovery (TIGER) program in particular. The stimulus package allocated $1.5 billion to TIGER grants. But there has been $57 billion worth of application requests for TIGER grants.

The high-tech industry is also eyeing additional federal help.

Ralph Hellmann, senior vice president of government relations for the Information Technology Industry Council, a tech trade group, met with executives from about 25 companies last week to discuss policy recommendations.

He said he expects the group’s goals to be more modest for a second stimulus.

“Staring into the abyss of a depression, cost was not as big as a consideration,” Hellmann said.

Still, the industry hopes for tax credits and other tax incentives that extend beyond six months or a year to give more certainty to investors.

Lobbyists for the National Federation of Independent Business (NFIB), a small-business group, are heading to Capitol Hill to push for a payroll tax holiday, which they sought earlier this year.

“Policy-wise, we think the best way to stimulate job creation is to pass a payroll tax holiday,” said Melissa Sharp, an NFIB spokeswoman. “This would get cash immediately in the hands of business owners who can use it to grow their businesses as well as in the hands of consumers who will spend more at small businesses.”

NFIB and others, such as the U.S. Chamber of Commerce, have already been working with the administration to expand more small business loans.

Both groups participated in a conference held at the Treasury Department on Wednesday, discussing how to free up capital for small businesses.

Meanwhile, the National Association of Manufacturers (NAM) is casting a year-end push to extend several tax breaks as a way to create jobs and avoid layoffs.

Atop NAM’s priorities are extensions for a tax break that expires at the end of the year that aims to bolster research and development. According to the association, roughly 18,000 companies use the credit and 70 percent of the tax credit goes toward salaries. NAM is also seeking an extension of two international tax provisions that expire at the end of the year.

“The international provisions help us compete overseas and strengthen the economy,” said Dorothy Coleman, vice president for tax policy at NAM.

“We have six weeks left. It is critically important in our minds to get these done,” Coleman said.

In addition to direct financial aid, Cochran of the U.S. Conference of Mayors said mayors would lobby for more money directed to the Energy Efficiency and Conservation Block Grant Program, the Community Development Block Grant Program, the Community Oriented Policing Services program and for school construction.

“While the climate bill is there, and the healthcare bill is there, what was really on everybody’s mind was unemployment,” he said.
“It’s become very, very bad, and very, very uneasy to be a mayor.”

Silla Brush contributed to this article.