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Capitol Washington, DC 20510 The Honorable Mitch McConnell Republican Leader United States Senate S-230 U.S. Capitol Washington, DC 20510 Dear Congressional Leaders, As elected leaders of local communities across the nation, we fully understand the need for fiscal responsibility and the tough choices that are required to achieve a balanced budget. We have also been forced to make challenging, even painful, cuts during this economic downturn. In the coming months, as you address both short- and long-term federal fiscal challenges, we urge you to adopt a bipartisan and balanced approach to deficit reduction by incorporating spending cuts with additional revenue from sources such as tax code reform and closing unfair corporate tax loopholes. The impending sequestration process mandated by the Budget Control Act of 2011 (BCA) is perhaps the biggest threat to our metro economies, which represent over 90 percent of the nation’s Gross Domestic Product (GDP), nearly 90 percent of all wage and salary income, 86 percent of the nation’s employment, and 94 percent of future economic growth. These automatic across-the-board cuts in defense and non-defense programs are estimated to reduce the nation’s GDP by $215 billion, decrease personal workforce earnings by $109.4 billion and cost well over 2 million jobs in only the first year. As recently as August 22, the Congressional Budget Office (CBO) updated its Budget and Economic Outlook for FY 2012 to FY 2022, warning that failure to alter the currently scheduled federal tax and spending policy changes would “lead to economic conditions in 2013 that will probably be considered a recession.” We are particularly concerned with deep reductions in non-defense discretionary spending, one-third of which is directed to state and local programs: 36 percent is directed to education; 28 percent to housing and community development; 18 percent to health and the environment; ten percent to workforce; and five percent to public safety and disaster response. The additional cuts scheduled to occur through sequestration will bring domestically appropriated funding well below historical levels as a share of the economy, forcing inevitable cuts to a number of critical local services and dramatic job losses for teachers, first responders, and health care workers. The Honorable John Boehner Speaker United States House of Representatives H-232 U.S. Capitol Washington, DC 20515 The Honorable Nancy Pelosi Democratic Leader United States House of Representatives H-204 U.S. Capitol Washington, DC 20515
We also share the concern expressed by many of your colleagues and industry stakeholders over the impact of sequestration on our military forces and national security; however, the impact will extend far beyond the Department of Defense and related activities. The defense industry, military personnel and innovative research underway at institutions of higher education are significant contributors to many of our metro economies. Nearly half of the estimated job loss and personal earnings reductions will occur in the defense industry; many of these job losses will occur in the civilian sector. Eighty-four percent of the nation’s population resides in 363 metro areas, which will gain 84 million residents over the next 30 years. With this growth, we have no choice but to make investments to relieve congestion, make our ports globally competitive, dramatically improve all levels of education, promote Science, Technology, Engineering and Math, develop firstin-class technology information systems, and work toward energy independence while urgently addressing climate protection. Cities and metro economies are at the center of all these issues and failure to invest in them will lead to the gradual decline of our national economy. Any federal budget solution that does not make the necessary federal investments in metro infrastructure, education and public safety will impede the national economic growth necessary for our nation to maintain global competitiveness and future fiscal health. The private sector needs this investment to achieve the productivity improvements and innovation that will lead to the economic growth our country desperately needs. Discretionary spending has already been significantly reduced in recent years. As our local metro economies - which drive the national economy - continue the struggle to recover from the worst national recession in decades, we cannot bear the financial burden that additional discretionary spending cuts would require just to meet the most emergent needs of our constituents. We recognize the need for the federal government to get its fiscal house in order. We encourage you to work together to find a bipartisan and balanced solution to achieve deficit reduction that facilitates, not undermines, economic growth. Sincerely, Michael A. Nutter Philadelphia, PA President Greg Stanton Phoenix, AZ Chair, Defense Conversion Task Force Scott Smith Mesa, AZ Vice President Greg Fischer Louisville, KY Chair, Metro Economies Standing Committee Kevin Johnson Sacramento, CA Second Vice President
Don Plusquellic Akron, OH Susie Galea Alamogordo, NM Gerald D. Jennings Albany, NY William D. Euille Alexandria, VA Ed Pawlowski Allentown, PA Robert Cluck Arlington, TX Kasim Reed Atlanta, GA Steve Hogan Aurora, CO Marie Lopez Rogers Avondale, AZ Stephanie Rawlings-Blake Baltimore, MD Denny Doyle Beaverton, OR David Bieter Boise, ID Lorenz J. Walker Bossier City, LA Thomas Menino Boston, MA Patty Lent Bremerton, WA Bill Finch Bridgeport, CT
Dave Golonski Burbank, CA ELizabeth B. Kautz Burnsville, MN Edwin Garcia Camuy, PR Kevn Meade Canton, IL James Brainard Carmel, IN Joseph P. Riley, Jr. Charleston, SC Anthony Foxx Charlotte, NC Ron Littlefield Chattanooga, TN Rahm Emanuel Chicago, IL Michael Bissonnette Chicopee, MA David C. Hartzell, Jr. Clarence, NY Kim McMillan Clarksville, TN Stephen K. Benjamin Columbia, SC Michael Coleman Columbus, OH Eugene Montanez Corona, CA Joe Adame Corpus Christi, TX
Kelvyn H. Cullimore Jr. Cottonwood Heights, UT Andrew Weissman Culver City, CA Bill Gluba Davenport, IA John O'Reilly Dearborn, MI Daniel S. Paletko Dearborn Heights, MI Michael B. Hancock Denver, CO T.M. Franklin Cownie Des Moines, IA Carl O. Sherman DeSoto, TX Carleton E. Carey, Sr. Dover, DE Roy D. Buol Dubuque, IA William Bell Durham, NC Marcia A. Leclerc East Hartford, CT Salvatore J. Panto, Jr. Easton, PA Antonia Ricigliano Edison Township, NJ Sedalia Sanders El Centro, CA John F. Cook El Paso, TX 3
Dick Moore Elkhart, IN Kitty Piercy Eugene, OR Elizabeth Tisdahl Evanston, IL Ray Stephanson Everett, WA Dayne Walling Flint, MI Acquanetta Warren Fontana, CA Betsy Price Fort Worth, TX Craig Lowe Gainesville, FL Karen Freeman Wilson Gary, IN Georgia Lord Goodyear, AZ Shane Bemis Gresham, OR Joy Cooper Hallandale Beach, FL Pedro E. Segarra Hartford, CT Daniel Juarez Hawthorne, CA Andy Hafen Henderson, NV Jerry W. Willey Hillsboro, OR
Peter B. Carlisle Honolulu, HI Dan Kemp Hopkinsville, KY Ruth Carney Hot Springs, AR Annise Parker Houston, TX Harvey Johnson, Jr. Jackson, MS Sylvester "Sly" James, Jr. Kansas City, MO Richard Clanton Kentwood, MI Dan Corbin Killeen, TX Lucy Johnson Kyle, TX Diane DuBois Lakewood, CA J. Richard Gray Lancaster, PA Raul G. Salinas Laredo, TX Ken Miyagishima Las Cruces, NM Carolyn Goodman Las Vegas, NV Richard J Kaplan Lauderhill, FL Kristen Umstattd Leesburg, VA
David Berger Lima, OH Mark Stodola Little Rock, AR Bob Foster Long Beach, CA Antonio R. Villaraigosa Los Angeles, CA Robert A. B. Reichert Macon, GA Paul Soglin Madison, WI Michael Fressola Manchester Township, NJ Wayne Powell Manhattan Beach, CA A.C. Wharton, Jr. Memphis, TN R.T. Rybak Minneapolis, MN Lori Moseley Miramar, FL Mary Ann Lutz Monrovia, CA Ernest D. Davis Mount Vernon, NY Michael R. Bloomberg New York City, NY Paul D. Fraim Norfolk, VA Chris Koos Normal, IL 4
Cindy Rosenthal Norman, OK Andre D. Pierre North Miami, FL Sandra E. Frum Northbrook, IL Richard Moccia Norwalk, CT Stephen H. Buxbaum Olympia, WA Jim Suttle Omaha, NE Buddy Dyer Orlando, FL Bill Bogaard Pasadena, CA Shawn Connors Pecatonica, IL Frank C. Ortis Pembroke Pines, FL Sandra L. Bradbury Pinellas Park, FL Brian C. Wahler Piscataway, NJ Michael Collins Plainfield, IL Jennifer Hosterman Pleasanton, CA Sam Adams Portland, OR Angel Taveras Providence, RI
John Dickert Racine, WI John Marchione Redmond, WA Mike Gin Redondo Beach, CA Ronald O Loveridge Riverside, CA David A. Bowers Roanoke, VA Ardell F. Brede Rochester, MN Ralph Becker Salt Lake City, UT Thomas T. Odell Sammamish, WA Jerry Sanders San Diego, CA Ed Lee San Francisco, CA Richard Bloom Santa Monica, CA Michael McGinn Seattle, WA Joseph A. Curtatone Somerville, MA Brenda L. Lawrence Southfield, MI Noramie F. Jasmin Spring Valley, NY Francis Slay St. Louis, MO
Christopher B. Coleman St. Paul, MN Joe McElveen Sumter, SC Michael J. Ryan Sunrise, FL Marilyn Strickland Tacoma, WA Mark W. Mitchell Tempe, AZ Jonathan Rothschild Tucson, AZ Shelley Welsch University City, MO Timothy D. Leavitt Vancouver, WA Scott Avedisian Warwick, RI Vincent C. Gray Washington, DC Jeffrey Prang West Hollywood, CA Christopher Cabaldon West Sacramento, CA William R. Wild Westland, MI Susan M. Kay Weymouth, MA Thomas M. Leighton Wilkes-Barre, PA James M. Baker Wilmington, DE 5
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