Two national commissions have recently released reports and recommendations on how to deal with the federal deficit. Depending on how the President and new Congress react, any changes will have implications for our entire country, including of course local governments.
The National Commission on Fiscal Responsibility and Reform, created by President Obama and headed by former Wyoming Republican Senator (Alan Simpson) and Clinton White House aide (Erskine Bowles), as well as the Bipartisan Policy Center's "Restoring America's Future" report have some similar ideas especially when it comes to items such as Medicare, Social Security and defense spending.
But they also contain recommendations that would directly impact local communities and touch everything from transportation funding to the community development block grant and rural development programs as well. And as noted in this column by Neal Pierce one of the recommendations from the Obama commission would even make bonds issed by state and local governments fully taxable.
The reports are lengthy and while we'll continue to find analyses, understanding how the recommendations can impact the work of local officials is essential, as a new Congress begins work next year on addressing the federal deficit.
Arnold Weinfeld is Director of Strategic Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.
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