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National Association of Counties * Washington, DC / Vol. 30, No. 14 * July 20, 1998

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Legislative Affairs Department
TEA 21, PILT increase highlight legislative successes


On hand in June to see President Clinton sign into law the Transportation Equity Act for the 21st Century (TEA 21) were (l-r) First Vice President C. Vernon Gray; Executive Director Larry Naake; Commissioner Timothy Loewenstein, Buffalo County, Neb.; Commissioner Karen Miller, Boone County, Mo.; County Executive Jean Jacobson, Racine County, Wis.; Immediate Past President Michael Hightower; President-elect Betty Lou Ward; and Evie Hightower, Michael Hightower's daughter. Photo by David Hathcox

The Legislative Affairs Department represents the interests of county government before the Congress and with the Administration. NACo relies on its steering committees, Board of Directors and the general membership to develop and advocate public policies promoting generally agreed upon county positions. The Legislative Affairs Department follows these public policies as it works to make NACo and county officials an effective lobbying force in Washington, D.C. In October, a survey in Fortune magazine identified NACo as one of the top 100 lobbying organizations among the thousands that operate in Washington, D.C.

The 1997-98 legislative year was marked by a dramatic and rather sudden change in the federal budget. Due to a booming economy, the federal government approached an era of budget surpluses for the first time in 30 years. Budget issues now revolve around how to allocate the surplus: pay down the debt, provide tax relief, secure the financial future of Social Security and Medicare, or increase funding for domestic programs.

NACo staff recognized this fundamental change in Washington as they continued to focus on key county priorities. The department's general measures of success are the enactment of federal legislation that assists counties in serving their citizens more effectively and efficiently - and the defeat of measures that harm counties by limiting their authority, reducing their revenues, or mandating new unfunded federal requirements.

This year's legislative highlight was reauthorization of the transportation bill, the Transportation Equity Act for the 21st Century (TEA 21). All four of NACo's main goals for the legislation were achieved. Funding was increased by 40 percent; the bridge program was protected; rural county officials were given a stronger role in the transportation planning process; and most of the highway and transit funds were guaranteed and will not be subject to an annual appropriations process.

The number one legislative priority for the NACo public lands agenda also was achieved when funding for the Payments in Lieu of Taxes program was increased by 6 percent- only the second boost in PILT since 1976.

Members of the Large Urban County Caucus (LUCC) met in King County (Seattle), Wash. in April to study the region's efforts to balance economic redevelopment and environmental protection. During their visit, they toured the Duwamish River, a busy shipping channel for the Port of Seattle and namesake of the region's EPA brownfields showcase grant. Pictured during their tour are (l-r) NACo Second Vice President Jane Hague, King County (Wash.) council member; Wayne Curry, Prince George's County (Md.) executive; NACo President-elect Betty Lou Ward, Wake County (N.C.) commissioner; and LUCC Chairman Peter McLaughlin, Hennepin County (Minn.) commissioner. Photo by Tom Goodman

Last summer, NACo won a major victory when Congress enacted a $3 billion welfare-to-work program that included a requirement that 25 percent of the funds be allocated directly to counties and other local entities through a competitive grant process. In the same bill, NACo successfully convinced Congress to restore benefits for many legal immigrants who lost coverage under the 1996 welfare reform law. The provision restored benefits not only to legal immigrants who were receiving SSI and residing in the United States as of the date of enactment, but it also will cover residents who became blind or disabled since the law's enactment or become disabled in the future.

A five-year, $24 billion bill helps provide health care for uninsured children, relieving counties of some of the burden of raising taxes locally to provide health care for the uninsured.

Twenty new empowerment zones (15 urban and five rural) also were authorized. The new empowerment zones will be eligible for the brownfields tax incentive, provide special expensing of business assets and qualify for private-activity tax exempt bonds.

NACo also helped block some tax proposals that attacked the principle of local control:

  • Overcoming a strong effort by the House and the Administration, NACo helped to kill a proposed restriction on the two percent de minimis rule for corporate holdings of tax exempt bonds.
  • NACo successfully fought proposed new federal restrictions that would limit local decision-making on using municipal bonds to finance sports stadiums.
  • Low-income housing tax credits were maintained as NACo and others opposed their elimination.

NACo is continuing efforts to enact a House/Senate conference committee bill on workforce development legislation that retains the role of local elected county officials in designing and implementing employment and training programs. The bill consolidates and streamlines a number of employment and training activities.

NACo continues to support, reluctantly, a compromise alternative to a total moratorium on so-called "Internet taxes." The total moratorium is an intrusion on the ability of local governments to raise their own revenues, and it would create an elite class of merchants exempt from collecting sales tax just because they happen to sell their wares or services over the Internet.

NACo also continues to lead in the battles over funding of juvenile justice programs, supporting a House provision which requires the states to pass through at least 75 percent of the federal funds to counties and cities.

As Congress and the Administration tackle controversial issues surrounding tobacco legislation, NACo seeks to ensure that counties that have incurred tobacco-related health costs are compensated and local tobacco ordinances are not preempted by federal or state law. When it appeared in September that President Clinton would sign tobacco legislation that did not protect county interests, President Johnson met at the White House with the president's top domestic policy advisor on the issue. Other organizations expressed concerns, and one week later President Clinton announced his opposition to the bill. NACo also supports efforts to assist tobacco-dependent counties.

NACo's stature as an influential lobbying association was evident by the caliber of speakers and meetings held this year. Speakers at the 1998 Legislative Conference included HUD Secretary Andrew Cuomo, Transportation Secretary Rodney Slater and Energy Secretary Frederico Peña. Senate Budget Committee Chairman Pete Domenici outlined the budget alternatives in light of federal surpluses, and U.S. Trade Representative Charlene Barshefsky explained the Administration's international trade policies consistent with President Johnson's globalization initiative for NACo. Empower America's Jack Kemp gave his enthusiastic perspective on both domestic and international issues.

The Rural Renaissance Task Force continued to focus on the rural impact of county lobbying efforts. The Large Urban County Caucus (LUCC) expanded activities with the assignment of a NACo staff person to handle day-to-day operations. In November, LUCC members met with Vice President Gore at the White House to discuss legislative issues of special concern to urban areas.

The Legislative Affairs Department continues to refine its methods to reach out to member and use technology to advocate even more effectively. At NACo conferences, the Legislative Information Center encouraged delegates to meet personally with NACo staff and view NACo's unique bill tracking and grassroots lobbying systems.

  • NACo's toll free number, 888/Leg-NACo, continues to be available for the exclusive use of member county officials to call their congressional delegations about NACo priorities.
  • To keep up-to-date, NACo's weekly Legislative Bulletin is sent to county officials serving on steering committees and the Board of Directors. The weekly Legislative Bulletin is also posted on NACo's Web site at www.naco.org.

 

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