Jobs for America Act Vital for Economic Recovery

WASHINGTON, March 10 /PRNewswire-USNewswire/ -- The National League of Cities President, Ronald Loveridge, mayor of Riverside, California, releases the following statement in response to the Jobs for America Act introduced today.  Statistics and research demonstrating the vital need for the legislation is also included after the statement.

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"I would like to thank the Congressmen for their leadership in sponsoring this vitally important bill.  This is a key piece of legislation that comes as cities face the worst of the economic storm, with revenues down and service needs at their highest.  Our research at the National League of Cities shows the ability of cities to meet their financial needs is now in jeopardy and will most likely worsen substantially through the rest of 2010.

"The actions of cities are not insignificant, as collectively we are the nation's fourth largest employer. The economy cannot recover quickly if cities falter, and so federal action now is essential.

"Cities continue to make the difficult choices of cutting services and furloughing workers.  We are now beginning to see cities cut fire and police services – activities essential to the quality of life and safety of citizens in our communities.  Traditionally, this is an option of last resort, and only serves to demonstrate the arduous situation facing cities.  

"The central focus and approach of this new legislation is something that we at the National League of Cities have advocated for some time.  

"It will provide much needed assistance to cities as they seek to protect public safety and avoid laying off municipal workers, which would only dig a deeper hole out of which America's economy would have to climb.  It also will help build a foundation for future growth by making available funds to cities that can be used to create useful jobs in both municipal and nonprofit agencies, and in the process put large numbers of unemployed Americans back to work.  

"This bill will be one of the National League of Cities' top priorities next week at our conference when we meet with administration officials and have our members meet with Members of Congress.

"We are looking forward to working with the Congress and the President to pass this much needed, and enormously helpful job creation measure."

Background information:

While the nation's economy may be approaching the late stages of the worst economic downturn since the Great Depression, local government budget tightening and spending cuts over the next several years could well impose a significant drag on the nation's economic recovery.

According to the latest NLC research brief, issued in January, cities face layoffs, canceled contracts with small businesses and vendors, reduced services and sizable budget shortfalls for 2009 that are expected to grow much more severe and widespread from 2010 to 2012.

With the pace of recovery still sluggish, the consequences of the recession will be playing out in America's cities and towns, on Main Street and in the lives of families for years to come. Among the findings:

• The municipal sector will likely face shortfalls between $56 billion and $83 billion in 2010-2012.  
• The low point for cities in any recession is typically two years after the onset of the recession of the economy at large. This indicates the low point for cities will be 2011.  
• Cities are responding with layoffs, furloughs, payroll deductions, capital infrastructure delays and cancellations, and cutting services.
• State aid to cities will be cut in the range of $21 billion to $30 billion in 2010-2012.
• 91% of cities cut spending in 2009, with 82% expecting to make more cuts this year.
• 14% of cities have already cut public safety services.
• Using a variety of data points, NLC calculates the state and local cuts will translate into layoffs of 600,000-700,000 people in 2010 and another 900,000 in 2012 in state, local and private sectors.  

The National League of Cities is the nation's oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans. www.nlc.org.  

SOURCE National League of Cities