Printer Friendly
Email A Friend
    `
Reprints
May 6, 2003
GovPro E-Newsletter
Null
Tuesday, May 6, 2003

Volume 2, Issue 17

Welcome to the GovPro Newsletter brought to you by the Penton Government Media Group. Look forward to news, resources, product and supplier information, and links relating to the government market.

Sponsored by Cover-All

CONTENTS

NLC Asks for Congressional Assistance

State Craft Budgets in Colorful Times

GSA Awards IT Contract

Golden State Goes for HEVs

News of the Weird

FEATURES

NLC CALLS FOR $40 BILLION TO KICK-START ECONOMY

The National League of Cities (NLC) called for a federal economic stimulus package for the cities and states to help kick-start the local engines of the national economy.

"America's cities and towns provide the local economic engines that power our national economy," said John DeStefano, Jr., mayor of New Haven, Conn. and president of the National League of Cities. "The infrastructure, schools, and fiscal condition of local communities relate directly to the economic health of the country. Federal economic stimulus spending should plow funds back intolocal economies."

The National League of Cities supported the economic stimulus approach proposed by Senators Olympia Snowe (R-ME) and Charles Schumer (D-NY), which would have provided $20 billion in flexible fiscal assistance to the states and $20 billion to cities. NLC and other local organizations are now working with Senator Snowe to build support in the House and Senate for that approach.

"Congress should provide no less than $40 billion in temporary fiscal assistance in fiscal year 2004, split evenly between state and local governments in the final 2004 reconciliation package or in economic recovery legislation," said DeStefano.

Fiscal Picture is Grim in Many Cities Many city budgets are in trouble due to the state budget crises, the economy, higher security costs, and unfunded mandates. States are struggling to close a collective 2003 budget shortfall of $67 billion and anticipate an additional $60 billion to $85 billion in shortfalls for 2004. Budget shortfalls at the state level are passed down to cities.

A recent NLC survey found that 75 percent of the 145 cities surveyed are less able to meet their financial needs this year than in 2002. This is a sharp increase over the 55 percent of cities that said they were less able to meet financial needs in last year's survey by NLC. In response, cities are drawing down reserves, raising fees for services, and laying off staff. Looking ahead, 74 percent of cities said they would be even less able to meet their cities' financial needs in the coming year and 54 percent expect their local economies to be weaker next year.

"Next year is going to be tough for America's cities and towns and we will confront a growing number of unpleasant decisions," said DeStefano.

Factors contributing to the worsening financial picture in cities include a decrease in revenues from states, which are facing the most severe budget deficits in decades. More than one-third of the surveyed cities (36 percent) said the decrease in state funds is the largest source of revenue decline in their cities. At the same time, most cities (81 percent) report that they increased spending on public safety in 2003. The survey results are based on initial responses from 145 city officials in 145 cities to NLC's State of America's Cities Survey on Fiscal Conditions, conducted in February 2003. Full detail from the survey will be released in May.

The National League of Cities is the oldest and largest national organization for American cities. NLC serves as a resource and advocate for 18,000 cities, towns and villages of all sizes, from New York City to Bee Cave, Texas, which collectively serve 225 million people. Visit http://www.nlc.org.

FEDSIM offers a wide range of support for planning, developing, acquiring, implementing, maintaining, and managing IT resources and support services. Managing over $1.4 billion in new IT acquisitions in 2002, FEDSIM has a proven track record of developing innovative and award-winning solutions to government IT problems and satisfying requirements for specific IT products and services.

GSA is a centralized federal procurement and property management agency created by Congress to improve government efficiency and help federal agencies better serve the public. It acquires, on behalf of federal agencies, office space, equipment, telecommunications, information technology, supplies, and services. GSA, comprised of 14,000 associates, provides services and solutions for the office operations of over 1 million federal workers located in 8,300 government-owned and leased buildings in 1,600 U.S. communities.

STATE BUDGET GAPS LINGER

With only two months left in most fiscal years, states must still close a $21.5 billion budget gap to comply with their balanced budget requirements, according to a report issued today by the National Conference of State Legislatures.

Entering their third straight year of budget shortfalls, state lawmakers have had to close a cumulative $200 billion budget gap. According to NCSL President and Oklahoma Senator Angela Monson, state policymakers are dealing with complicating factors on both sides of the budget.

"Already plagued by anemic revenue performance, lawmakers have been besieged by spending overruns - from Medicaid to homeland security to emergency snow removal," she said. "The problems have been relentless as most states have run out of the simple, painless options."

During fiscal year 2003, which began on July 1 for most states, 37 saw revenues failing to meet projections, while only three reported revenues exceeding budget levels. Forty-five states subsequently revised their forecasts, in nearly every instance downward.

The situation is not much brighter for fiscal year 2004. As states craft their budgets for that year, estimates show 41 states facing a cumulative budget gap of $78.4 billion. Thirty-seven of those states reported a gap in excess of 5 percent of their general fund, while 19 of these exceed 10 percent.

Monson said the situation is bleak in many states. "Broad cost-cutting measures are being enacted everywhere. Lawmakers are leaving no stone unturned. Services once thought to be sacred are now on the chopping block. K-12 education, social services, Medicaid eligibility, corrections are all being scaled back as states struggle to bring their books into balance."

NCSL's State Budget Update: April 2003 shows that 21 states are considering proposals that would affect K-12 education funding, including across-the-board cuts, reduced transportation funds, slashed state aid for teacher salaries and lower per pupil aid.

Many states have turned to revenue enhancements. Six have increased cigarette taxes. Two have raised beer taxes. Others have delayed previously enacted tax cuts, increased health insurance premium taxes and boosted taxes on cell phones and other phone services.

COVER-ALL

Cover-All buildings provide unparalleled ambiance, and exceptional sound dampening properties. The vast amount of natural lighting illuminates every corner of the building making for a sunny day feeling inside, reducing or eliminating dependence on an electrical utility grid creating a more comfortable environment for animals and a safer environment for those working around equipment.

http://www.coverall.net

NEWS

CALIFORNIA BACKS HEVs

The State of California officially will rely on gasoline-electric hybrid vehicles and ultra-clean gasoline powered vehicles to meet clean air standards, instead of pull-in electric vehicles.

The California Air Resources Board eliminated an existing standard requiring automakers to sell battery powered electric vehicles, by a vote of 8-3.

GSA AWARDS IT SUPPORT CONTRACT FOR MARINES

The U.S. General Services Administration (GSA) has awarded a technical support services task order to SRA International Inc. on behalf of the U.S. Marine Corps.

GSA's Federal Systems Integration and Management Center (FEDSIM), a program of the Federal Technology Service (FTS), made the award through GSA's Millennia contract. If all options are exercised over the seven years, the task order will have a value of over $115 million.

Supporting the U.S. Marine Corps Command, Control, Communications, and Computers (C4) at Headquarters U.S. Marine Corps, the scope of work for this task order includes IT-related planning, analysis, coordination, design, and development support for military personnel engaged with the enemy and the IT infrastructure that supports those personnel.

"This task order incorporates the key components of high quality, cost effective IT integration, development, and project management services that are the hallmark of FTS's FEDSIM program and Millenia contract," said FTS Commissioner Sandra Bates. "We're confident that this solution offers the technical expertise and flexibility to meet the needs of the U.S. Marine Corps C4."

NEWS OF THE WEIRD: Bizarre but true stories about real people. http://www.govpro.com/GPRONewsletter/Article/28988/

CROWN EQUIPMENT

Crown Equipment designs, manufactures, distributes, services, and supports material handling products that provide customers with superior value. Electric lift trucks range from hand pallet trucks to very narrow-aisle (VNA) turret trucks.

http://www.crown.com/gsa1

SAFETY STORAGE

Safety Storage crafts hazardous storage buildings for a wide range of applications, like isolating a hazardous production process, containing a volatile material, enclosing an explosive operation, adding a test lab, or securing equipment or evidence. Only Safety Storage has the custom-engineering experience and range of pre-fabricated solutions that fully comply with governmental regulations, and meet pertinent building and fire codes.

For details, go to: http://www.safetystorage.com

LINKS

C & H Distributors provide a fast, efficient way to purchase shelving, cabinets, packaging and shipping products, or office furniture. Visit: http://www.chdist.com

Crown Equipment designs, manufactures, distributes, services, and supports material handling products that provide customers with superior value. http://www.crown.com/gsa1

PRODUCT SPOTLIGHT

Potters Industries: Glass beads and spherical additives for highway safety. http://www.pottersbeads.com

Seymour Of Sycamore, Inc.: Aerosol spray paint. http://www.seymourpaint.com

T2 Systems, Inc.: Oily wastewater treatment systems http://www.t2einc.com

Find information on advertising in the GovPro Newsletter on http://www.govpro.com or contact rhowlett@penton.com.

You may qualify for a FREE Magazine Subscription

Complimentary subscriptions to Government Product News, a product-driven resource, and Government PROcurement, editorial targeting the public sector purchasing professional are available to those who qualify.

To subscribe to Government Product News visit:

http://www.submag.com/sub/gn

To subscribe to Government Procurement visit:

http://www.submag.com/sub/gp

Copyright 2003 Penton Media, Inc.