Saturday, January 23, 2010

Reed, other mayors tell Obama: Stimulus isn't working for cities

WASHINGTON -- As if the White House isn't already hearing it from others, the nation's mayors delivered a clear message to President Barack Obama on Thursday: His economic stimulus program isn't creating enough jobs.

"What we said ... was that the method they used for disbursing the first stimulus dollars was wrong," said new Atlanta Mayor Kasim Reed, one of more than 200 mayors who met with the president and other administration officials at the White House. "That approach just did not work."

Thursday's meeting between members of the U.S. Conference of Mayors and the White House comes amid signs that -- despite improvement in the nation's economy overall -- the country's cities are still suffering.

A report issued by the mayors' group this week showed the bulk of the nation's unemployed are in cities. It also predicts that most cities won't see a return to pre-recession employment levels until at least 2013. Metro Atlanta is home to about 60 percent of Georgia's unemployed, according to the report. It also shows that Atlanta is among the country's hardest-hit cities economically.

Thursday, Obama sought to reassure mayors that he knows cities need more help.

"While Wall Street may be recovering, you and I know your Main Streets have a long way to go," he told mayors. "Unemployment in your cities is still far too high. And because our metropolitan areas account for 90 percent of our economic output, they are the engines that we need to get started again."

Obama said the budget he will present next month will include new programs and added funding for the nation's cities.

Reed and other mayors want Washington to change the way economic stimulus money and other federal aid are distributed.

About 80 percent of stimulus money has gone directly to state governments, they say. Instead of being used to create new jobs, the bulk of the money has been used to save existing state government jobs -- teachers, law enforcement and others -- and for shoring up sagging state budgets.

If more money would flow directly to cities, the mayors' group contends, it could be used for local improvement projects that would create more jobs.

"Everything is about jobs now," said Burnsville, Minn., Mayor Elizabeth Kautz, president of the mayors' group.

The Democrats' stunning loss in Massachusetts' U.S. Senate race Tuesday reinforced that message.

White House officials indicated the president is receptive to making sure any future jobs creation package or economic stimulus funding adds more emphasis on federal aid to cities.

Reed -- a big Obama supporter in the 2008 election -- said he was encouraged by what he heard Thursday. But, he added, the White House needs to follow through on its promises.

Charleston, S.C., Mayor Joseph Riley, who has been in office 34 years, noted what's at stake: "An economic turnabout like this works itself out not at a national level. It works itself out in the towns and cities of our country."

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