ICMA has a voice in a new bipartisan task force on intergovernmental relations. Created by Speaker Paul Ryan and Minority Leader Nancy Pelosi the task force held its first hearing on June 22 to address, “Local Perspectives:  Examining the Current State of Intergovernmental Affairs.” Members of Congress who attended the hearing talked about giving local government a greater voice and opportunity to improve structures and procedures. Empowering local leaders is key, they said, given the decline in the local/state/federal relationship in recent decades.

Here are a few highlights from the hearing:

  • Task Force Chair and Utah Congressman Rob Bishop said a goal of the task force is to examine ways to improve structures so that decisions can be made closest to the people. 
  • Scott Pattison, CEO & Executive Director, National Governors’ Association testified that working with local and state governments is the most important way to craft effective regulations. 
  • College Park, Maryland Mayor Patrick Wojahn emphasized that cities need the authority to address local needs. Retaining tax exempt municipal bonds is important to address our infrastructure needs and to grow our economy, he said.
  • State and local leaders attending also addressed concerns about the potential elimination of state and local tax deductibility. Mayor Wojahn explained that citizens have already been taxed once at the local and state level and should not face double taxation from the federal government. The loss of state and local tax deductibility would limit the ability to raise the revenues local governments need to deliver services.Pattison added that there has been an historic understanding that the federal government respects state and local taxing authority since the creation of the federal income tax in 1913.
  • Commissioner Desloge addressed questions about preemption indicating that home rule is best as it allows local action unless such actions have been prohibited.
  • There was some discussion about conditions attached to federal grants; for example the Every Student Succeeds Act (ESSA) was touted as an improvement over the No Child Left Behind Act as ESSA encouraged more state innovation. 

In addition to ICMA, the leading organizations that represent state and local governments at the federal level – the National Governors Association, National Association of Counties, National League of Cities, National Conference of State Legislatures and The Council of State Governments – serve as an advisory council to the task force.  When the task force was created last month, the seven organizations noted, “All federal policy decisions impact state and local governments. A strong partnership is necessary to ensure that we are all working toward common goals – serving the needs of America, state by state, community by community. “

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