The Nation's Mayors Weigh In On The Nation's Economic Issues
Wednesday, January 23, 2008PAUL KANGAS: A new poll done for the U.S. Conference of Mayors shows the economy is the number one concern of most Americans these days. The group is meeting in Washington for its semi-annual conference. As Stephanie Dhue reports, in the face of slowing economies and lower tax revenues, the mayors are calling on the Federal government for help.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: At the Conference of Mayors meeting in Washington, DC, the economy tops the agenda, with cities large and small feeling the squeeze of slower economic growth. In separate meetings with President Bush and lawmakers, the mayors are supporting a stimulus plan. Trenton Mayor Douglas Palmer says it should include help for their cities.
MAYOR DOUGLAS PALMER, TRENTON, NEW JERSEY: We want to make sure that the stimulus package or whatever's happening, that it not get bogged down. People in our cities need help right now.
DHUE: Hurst, Texas Mayor Richard Ward says he's worried about the slowdown in consumer spending, since half of his city's budget comes from sales tax revenue. But he's doubtful the stimulus plan will be effective.
MAYOR RICHARD WARD, HURST, TEXAS: Maybe the $800 they're talking about giving each person may help a little bit. It may help us a little bit because we do depend on retail so much. But places that don't depend on retail, there's not much you can buy for $800.
DHUE: Many mayors are trying to help their constituents cope with soaring foreclosures. The Mortgage Bankers Association set up this studio at the conference so mayors could tape public service announcements on the issue. Jerry Abramson is the mayor of Louisville, Kentucky, which has seen a 400 percent increase in foreclosures in its suburbs. He supports greater use of community development block grants to boost the economy and keep people in their homes.
MAYOR JERRY ABRAMSON, LOUISVILLE, KY: What about looking at this foreclosure crisis, putting it together with the opportunity for a stimulus; that is, get money into the economy and spent and see if there's a way to wed the two and ultimately resolve both.
DHUE: Several lawmakers are working on that. Banking Committee Chairman Chris Dodd today proposed spending $10 to $20 billion to create a new Federal corporation to buy troubled mortgages and refinance them with fixed loans. New York Senator Charles Schumer also wants to address housing in the stimulus bill.
SEN. CHARLES SCHUMER, (D) NEW YORK: Because housing is the bull's- eye. It's right at the center of the problems here. It's at the center of the lack of consumer spending and it's at the center of the credit freeze. And if we were to deal with the upcoming foreclosures in a real and rational way, it would help calm the markets down.
DHUE: Tomorrow, the mayors will put forward more of their ideas for how government and the industry can effectively responding to the mortgage crisis. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
