LOC News
LOC Leadership Advocates in Washington, D.C.
Earlier this week, LOC President and Hillsboro Mayor Steve Callaway was accompanied by LOC Executive Director Patty Mulvihill and Legislative Director Jim McCauley in Washington, D.C. for two days of advocacy with the National League of Cities (NLC). The NLC hosts these events annually to drive home their federal advocacy efforts on behalf of state leagues from around the country.
During this year’s event, staff from the Appropriations Committees explained the current debt ceiling issues, its impacts, and the negotiation process. Both conservative and progressive think tanks believe there are devastating social and economic impacts of a default on the U.S. if the debt ceiling crisis is not averted. These impacts can be summed up in the following:
- A mortgage rate increase of 20%;
- A job loss of 8 million;
- The worst recession since the Great Recession; and
- A panicked sell-off.
For cities, the following could be part of the crisis as well:
- Higher borrowing costs as debt yields go up and increase project costs;
- Smaller cities could be blocked out of borrowing and credit markets;
- Impacts from cuts to veteran’s programs and military bases, and other discretionary spending, which based on the Republican plan is a wholesale 22% cut across the board; and
- Federal staff will not be available for local governments to access.
As part of the briefing, Senior White House Advisor and American Rescue Plan Coordinator Gene Sperling provided updates on his efforts to protect ARPA funds from being swept during the negotiations with House Republican leadership.
In addition, White House CHIPS Act Coordinator Ronnie Chatterji discussed the rollout of the CHIPS Act. He mentioned the investments being made in New York, Arizona, Ohio, and Texas, but provided no comments about Oregon. This was particularly disappointing given the role Oregon’s semiconductor ecosystem has played in the semiconductor industry internationally. It was clear from Mr. Chatterji’s comments that each state will be evaluated on the overall package that states are bringing to the table. For Oregon, more work remains and it’s clear that incentives will be weighted in the conversation. As a result, Oregon will need to take charge and complete the semiconductor package through the legislative process, including the high-value local incentive programs that include Enterprise Zone extensions and SIP-Gainshare.
Contact: Jim McCauley Legislative Director - jmccauley@orcities.org
Last Updated 5/19/23