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9•A4 NLC TARGETS SOCIAL AND INFRASTRUCTURE NEEDS TO STIMULATE GROWTH AND JOBS The nation needs a realistic economic growth and fob creation plan to boost consumer spending, fix state budget problems, and spur economic growth, says the National League of Cities (NLC), which proposed its own economic plan on January 21. The plan would boost consumer spending for low- and moderate - income Americans through a tax rebate and extension of unemployment benefits; alleviate the state fiscal crisis through funding for schools, homeland security, Medicare, and trans- portation; and spur economic growth through special emergency block grants targeted to America's social and infrastructure needs. grants to assist states in these critical areas: • $25 billion for school repairs and renovations. • $10 billion to address unmet homeland security and infrastructure needs such as airport and port security, bioterrorism, and security at chemical and nuclear facilities. • $10 billion in one -time one -year increase of federal Medicaid payments. • $5 billion to states for highway and transpor- tation funds. "What we are proposing tccay is a framew for a reasonable economic stimulus and growth plan that creates real jobs and promotes real growth in real communities," said NLC president and New Haven, Conn. Mayor John DeStefano, Jr Specifically, the National League of Cities recommends a federal economic growth plan with the following elements: Boost consumer spending with $75.5 billion for short -term stimulus measures. The recession primarily hurts low- and middle - income families. NLC believes a stimulus package should focus benefits on these segments of the Population through: • $10 billion for extension of unemployment insurance benefits to those whose benefits have expired. • $65 billion for a one -time tax rebate of 3.5% of the first $15,000 in wages. This would benefit 149 million workers and would amount to $525 for a single worker and $1050 for two workers. • $500 million for transitional job creation in cities and towns. • Alleviate state budgetary shortfalls with $50 billion in immediate remedies. The National Governor's Association estimates that states face $67 billion in budgetary shortfalls in 2003, and NLC supports $50 billion in unrestricted Buttress investments in current and future public infrastructure and service needs through $20 billion in federal aid for localities. NLC proposes a one -time one -year infusion of federal aid to both enhance funding for existing block grant programs and target critical local needs: • $7 billion for first responder grants to help local first responders hire, equip, and train addi- tional personnel. • $5 billion to rehabilitate, replace and maintain the nation's aging water infrastructure network. • $3 billion in local law enforcement grants to hire an additional 30,000 law enforcement officers, training and procurement of equipment. • $2.5 billion for transportation projects that would create jobs and spur economic activity. $1.5 billion in funding for the HOME program to increase affordable housing, reduce homelessness, and fund the President's down - payment assistance initiative. • $1 billion for emergency school repairs and renovations. For more information on this proposal, visit the NLC website at www.nic.org. PAGE 6/PRIORITY FOCUS Visit the League's Official Web Site-- www.cacities.org