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2009-225-1171 - Support Stimulus Bill City of Miami Gardens Agenda Cover Memo Council Meeting Date: December 9, 2009 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: N/A X Sponsor Name Oliver Gilbert III, Vice Mayor Department: City Council Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, EXPRESSING SUPPORT FOR THE “LOCAL JOBS NOW” JOB STIMULUS BILL BEING PROPOSED BY THE UNITED STATES CONGRESS AND THE OBAMA ADMINISTRATION; URGING THAT CONGRESS AND THE OBAMA ADMINISTRATION DRAFT THE LEGISLATION TO ENSURE THAT LOCAL JOBS BE CREATED AND THAT LOCAL GOVERNMENTS ARE BENEFITTED; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING INSTRUCTIONS TO THE CITY CLERK; PROVIDING AN EFFECTIVE DATE. Staff Summary: Background As many may be are aware, President Obama is proposing a second economic stimulus bill. While the details of the proposed bill are still unclear, estimates on Capitol Hill have put the bill between $75 billion to $200 billion. As Democratic leaders in Congress and the Obama Administration are drafting the proposed "jobs/stimulus bill", the sentiments of many local communities is that the initial American Recovery and Reinvestment Act (ARRA) provided little to no relief to local communities. The task of building, operating and maintaining infrastructure and providing every day services, such as police and fire protection, falls upon local governments. Despite these responsibilities, however, localities were ADD ON ITEM: EXPRESSING SUPPORT FOR THE “LOCAL JOBS NOW” STIMULUS BILL 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 largely overlooked in the ARRA, which guided the bulk of federal funds to state governments. An October 2009 report by the U.S. Conference of Mayors found that only .87 percent of ARRA funding was provided directly to cities. To that end, many local communities are now lobbying Congress to include a direct stimulus allocation to local governments. As the 3rd largest municipality in Miami Dade County, and one of the most recently incorporated cities, Miami Gardens must seize the opportunity that may be afforded with a proposed economic stimulus bill to address severely needed job creation at a local level. Current Situation With a national unemployment rate surpassing a 26-year high of 10.2%, the City’s unemployment rate eclipsed that rate in October 2009 by reaching almost 16%. The need for specific economic stimulus is mostly felt at a local level with many of the City’s businesses and residents unable to realize a benefit from the initial $787 billion stimulus plan. The Administration and Congress should increase investments in local economies and local job creation during this critical period in the nation’s recovery. Compared to other recipients, financial assistance to local governments can be spent more quickly – localities are likely to cut back on spending in economic downturns due to balanced budget requirements, reduced property sales, and income taxes revenues, and therefore, the aid may forestall these cuts. Additionally, without direct federal assistance, cuts will undoubtedly be made in critical service areas such as police, parks, and public works. Of the federal programs being proposed, the City is most supportive of the following: • Department of Commerce’s Economic Development Administration • Local Fiscal Assistance Trust Fund Proposed Action: Vice Mayor Gilbert recommends that City Council approves the proposed resolution encouraging Congress and the Obama administration to draft legislation that allocates the next round of economic stimulus funds directly to local governments. Attachment: None