Mayors, liberal lawmakers to discuss 'crisis' of local budgets

Calling for new stimulus legislation, a group of local government groups and liberal lawmakers will gather Tuesday afternoon on Capitol Hill to warn that local economies have hit a "crisis point" that threatens the nation's rebound from the recession.

Officials from the National League of Cities, the U.S. Conference of Mayors and the National Association of Counties will unveil a new report outlining the layoffs and cuts to safety-net programs if Congress doesn't pass a new jobs bill.

Joining the groups will be a number of liberal Democrats, including Reps. Barbara Lee (Calif.), Phil Hare (Ill.), Lynn Woolsey (Calif.) and Keith Ellison (Minn.).

Sen. Sherrod Brown (D-Ohio) and House Labor Committee Chairman George Miller (D-Calif.) have also been invited.

The Senate this week is expected to consider legislation providing $30 billion to encourage community banks to increase their lending to small businesses. The upper chamber already ended debate on the measure last week, clearing the way for final passage.

The House passed a similar bill on June 17.