Congressional Expectations in 2010

Congress is not even close to finishing the issues it began this past January, and when they return following their brief winter break, they will face a number of regulatory issues, including:

• Federal Trade Commission (FTC) -- Expect the FTC to get more involved in consumer financial protection. Under new proposed regulations, the FTC will be given more authority to levy fines and investigate firms doing with others know to violate FTC rules. Privacy will also be an issue, in terms of how media companies, retailers, advertisers and others collect and use consumer information. THOUGHTS??? Contact your Member of Congress.
• Food and Drug Administration (FDA) -- Next year Congress also will look at our nation's food safety laws.
• Transportation -- Congress will look at two major bills next year, including the new proposed "Jobs" bill and the re-authorization of the Transportation Equity Act which expired this past September but was extended into next year. Another issue however, will be an issue that a number states have already considered -- TXTing while driving. But these regulations will be geared toward truck drivers.
• Environment -- Congress will continue their debate on climate change and air emissions while also looking at our nation's fresh water system.
• Taxes -- Congress will also address tax issues that are set to sunset in the coming year.

Regardless of the issues, next year proves to be a busy one. On top of the packed Congressional agenda, 2010 also is an election year so by definition each issue is a political issue and will be weighed in the context of how it is perceived back home. Therefore, it is vital that you make your views known, advocate for or against issues important to you and your business, and ask for money for various programs and projects. In this economy, we all can use a little help from Congress and the Federal government.

Creating Jobs, Investing in Transit, Roads and other Infrastructure

Each year, the federal government allocates a significant portion of the overall Federal Budget to expenditures that have a direct impact on the states. This includes monies to support programs such as Medicare, food stamps, unemployment compensation, transportation and infrastructure, Medicaid support, job training and education amongst others.

According to the (Michigan) State Fiscal Agency, “Michigan’s share of Federal expenditures has lagged behind the amount of most other states.” (See State Fiscal Report, May/June 2009). The report finds that “Michigan’s total per-capita expenditures ranked 45^th among the states and 41^st among the states in grants to state and local governments.” Id. This means that Michigan is receiving less than its fair share of Federal expenditures

In terms of transit/transportation dollars, Michigan taxpayers lose about $100 million a year in federal transit aid because the state and its major cities have failed to plan for and invest in world-class bus and train service. In fact, 34 counties in Michigan with little public transit service.

Given the current economic climate in Lansing, there are a number of opportunities for Michigan businesses, organizations and institutions to secure support from Congress and the federal government. For example: States are hoping that a new jobs bill outlined by the President will include money for infrastructure projects.

Despite the possibility of having these funds available, Michigan may be ineligible for $475 million in federal highway money next year because it can’t find $84 million in matching state funds. This means that the state may lose out on nearly have a billion dollars in federal highway money in 2010 and even m ore through 2014.

Despite Michigan's potential shortfall, there is time to advocate for change in Congress and find the resources to fund shovel-ready projects, to help create jobs, boost our state's infrastructure and jump-start our ailing economy.

While Congress chose to delay reauthorizing the Transportation Equity Act, they are allowing authorities and road commission’s time to shape the debate and the outcome of the legislation, including positioning such entities to secure federal funding through the reauthorization. With a lack of funding coming from the state, now is the perfect opportunity to turn to Washington for federal support and seek modifications to exist laws and regulations that would prevent Michigan from capturing additional federal support.

For example, the current surface transportation law, the Safe, Affordable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU, P.L. 109-53), was adopted in 2005 and expired on September 30, 2009. To give you some idea of how political this bill was -- When Congress finally passed the last transportation bill in 2005, it took two years and 12 extensions to complete it.

At stake is the dwindling Highway Trust Fund, financed by a federal gas tax that pays for repairs to the nation’s crumbling infrastructure. At issue is an effort by Congress and the President to set the nation’s transportation policy for the rest of the decade and perhaps for decades to come. The outcome will be critical to state and local governments that depend on federal assistance to maintain and improve their transportation systems.

The end game will be the creation of a funding mechanism that will ensure the national transportation system will meet the demands of an expanding population while also accommodating the environmental priorities of those who want to see less road congestion, less accidents and more transit options.

For transportation planning organizations it could mean a modern, sustainable and seamless surface transportation network, that fully integrates and connects the nation’s small urban and rural regions with global, metropolitan and neighboring markets. It could also mean increased federal investments in existing and new rural public transportation system, with an emphasis on establishing stronger incentives and program flexibility across the spectrum.

While we will wait almost a year before Congress will most likely pass a transportation bill, Congress continues to debate issues of transit and transportation and will soon debate a “jobs” bill that will contain federal funding for local infrastructure projects. For example, the U.S. House of Representatives passed the “American Clean Energy and Security Act” (H.R. 2454) in June, and the Senate is still debating their bill. Both bills contain provisions affecting transit, transportation, infrastructure projects and jobs.

Although Congress will not pass a transportation bill until next year, there are still opportunities for transit agencies and organizations to secure resources for a variety of projects through existing bills, and help shape funding for future projects by taking a proactive role in advising Congress on what is important to your agency and community. We need advocates in Washington to support projects in the State of Michigan. We need effective leadership to create a collaborative group of like-minded agencies to support what is necessary to bring the requisite resources to re-build Michigan and create opportunities for us to get back to work.

Therefore, if you have certain projects that need to be funded or policy related issues that can benefit your program, it is important that you meet with your planning organizations; MDOT, the Governor and your Congressional Delegation to ensure their priorities are your priorities. Then it is important to work with your chambers and other community organizations to build a solid base of support for your projects. Despite a full agenda, Congress needs to hear from you and what you need to provide valuable resources to your community. With limited funds from the state and dwindling budgets all around, it seems that Congress is our only option.

Communications gap between lawyers and the media

Earlier this week, Montieth & Co., a special situations management advisory and communications consultancy released the results from their 2009 "Media and the Law Survey."

The results show, that reporters are trying to cover more litigation than ever (60% of reporters polled), and the need help understanding the core issues of the cases, especially in securities actions."

In today's litigious environment, journalists need to be able to explain complex legal matters to audiences outside the courtroom. Lawyers have a real opportunity, not to affect a legal outcome, but to help protect their clients reputation in the court of public opinion.

However, the survey also found that only 31% of the respondents said that lawyers were effective in helping them understand the cases and the legal issues involved -- and most found plaintiff's attorney were more helpful.

Reporters surveyed also said they "wish lawyers were more open to talking to reporters about their cases." And others would like more background on cases.

Lawyers have an important role in protecting their clients. At the same time, that should not come as a sacrifice to protecting their client's reputation in the public eye. In some cases, one's reputation is more important than any legal outcome.

As a result, lawyers should either become more media savvy or retain a public relations firm that is, because the chances are, if you are not talking to the media ... your opponent is.

*For the record, only half of those surveyed found PR firms to be helpful. So we all have to step-up our game.

Delays in Transit Expected

There is no doubt that Congress has a full agenda. Health care reform has been dominating their time, followed by climate change legislation and issues in the Middle East. The end of its fiscal year is just a few days away and they, like the Michigan Legislature, have yet to pass their funding bills.

For example, the current surface transportation law, the Safe, Affordable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU, P.L. 109-53), was adopted in 2005 and expires on September 30, 2009. To give you some idea of how political this bill was -- When Congress finally passed the last transportation bill in 2005, it took two years and 12 extensions to complete. Although Congress has a bill now drafted, the President wants to put off this measure until after the midterm elections in 2010. A delay in the re-authorization will hinder the planning of transportation projects and perhaps put them in jeopardy of ever getting completed.

At stake is the dwindling Highway Trust Fund, financed by a federal gas tax that pays for repairs to the nation’s crumbling infrastructure. At issue is an effort by Congress and the President to set the nation’s transportation policy for the rest of the decade and perhaps for decades to come. The outcome will be critical to state and local governments that depend on federal assistance to maintain and improve their transportation systems.

The end game will be the creation of a funding mechanism that will ensure the national transportation system will meet the demands of an expanding population while also accommodating the environmental priorities of those who want to see less road congestion, less accidents and more transit options.

For transportation planning organizations it could mean a modern, sustainable and seamless surface transportation network, that fully integrates and connects the nation’s small urban and rural regions with global, metropolitan and neighboring markets. It could also mean increased federal investments in existing and new rural public transportation system, with an emphasis on establishing stronger incentives and program flexibility across the spectrum.

While we will wait for almost a year before Congress will most likely pass a transportation bill, Congress continues to debate issues of transit and transportation. For example, the U.S. House of Representatives passed the “American Clean Energy and Security Act” (H.R. 2454) in June, and the Senate Environment and Public Works Committee is currently developing their version. Both bill contain provisions affecting transit. Although Congress will not pass a transportation bill until next year, there are still opportunities for transit agencies and organizations to secure resources for a variety of projects through existing bills, and help shape funding for future projects by taking a proactive role in advising Congress on what is important to your agency and community.

Therefore, if you have certain projects that need to be funded or policy related issues that can benefit your program, it is important that you meet with your planning organizations, MDOT, the Governor and your Congressional Delegation to ensure their priorities are your priorities. Then it is important to work with your chambers and other community organizations to build a solid base of support for your projects. Despite a full agenda, Congress needs to hear from you and what you need to provide valuable resources to your community. With limited funds from the state and dwindling budgets all around, it seems that Congress is our only option.

Daniel Cherrin is the former Communications Director/Press Secretary for the City of Detroit and to Detroit Mayor Kenneth V. Cockrel Jr. He is now President of North Coast Strategies, which provides cutting edge practical advice where government action or inaction, litigation vulnerability or complex regulatory requirements will impact your reputation and bottom-line. You can reach Cherrin at dcherrin@NorthCoastStrategies.com or (313) 300-0932.

Restoring stability, gaining trust and rebuilding Detroit’s future.

By Daniel Cherrin

One year ago, then Detroit City Council President Ken Cockrel became Detroit’s 61^st Mayor, after Kwame Kilpatrick resigned. Then Mayor Cockrel, assumed the leadership of a city very much in trouble. At the time, the magnitude of Detroit’s budget problems were unknown, people sat in city hall pushing paper, our auto industry’s infrastructure was crumbling, the Nation was about to elect its first African American President, America’s economic climate worsened, and the world would soon be coming to Detroit for the NCAA Final Four Men’s Tournament.

Ken Cockrel inherited a city in shambles, not as the “elected mayor,” but as a public servant, called to duty and asked to serve. At the time, his 11-year political-career as a Wayne County Commissioner, City Council Member and City Council President prepared him to assume his new role as Mayor. As Mayor, Cockrel, looked forward to creating an open and transparent culture, stabilizing a city, restoring trust in city government and the office of mayor.

In the brief eight months he served as Detroit’s Mayor, Cockrel was often criticized for moving to slow. But moving slow was the most appropriate strategy for coming into the middle of an established administration at a time when he had to campaign for office twice, while still trying to run the city. Slow, calculated and strategic moves, based on facts and sound public policy, rather than politics or pressure, was how Cockrel stabilized the city. It took time to get a handle of the city’s finances and come up with a plan to not just reduce the deficit, but to eliminate it, balance the budget and turn in all of the city’s financial reports in on time, to help restore Detroit’s credit rating lost due to so much uncertainty in the city.

He began to create a process to repair and rebuild a fractured and aging city government and change the corporate culture, to restore stability in our city and restore our tainted image.

As we have all seen, as city council president, as mayor, and again as city council president, Cockrel is a person with tremendous integrity. As Mayor, he put substance before showmanship and worked to secure meaningful reform for Detroit.

Cockrel served as our Mayor at the perfect time. As mayor, he shifted our region’s focus from the scandals of the past to rebuilding for our future. At the time he became mayor, he did not seek the position, and yet he rose to the challenge.

As Cockrel’s Communications Director and Press Secretary, I was given the opportunity to participate in a number of discussions and decisions affecting our city. I was always impressed, when Cockrel made decisions not because of politics, but because it was good public policy … Not because it would get him elected, but because it made sense … Not because it was what someone wanted, but because it was what the city needed.

This past May, the voters (or lack thereof) did not give Cockrel the opportunity to act on his plans to restore financial stability to the city, to restore the trust back in the Office of Mayor and to find new hope and opportunity to secure Detroit’s future for the next generation.

Although Cockrel’s work continues as President of the Detroit City Council, there is no doubt in my mind of Ken Cockrel’s place in Detroit’s history. He became Mayor not out of desire, but out of need. He served as Mayor with honor, integrity and class. His agenda is Detroit’s agenda. Cockrel remains at the base of Detroit’s foundation and best represents the City’s future. Ken Cockrel was the right person at the right time to lead this city and created the process by which fiscal stability could be restored, trust, and set the tone for Detroit’s new beginning.

Daniel Cherrin is the former Communications Director/Press Secretary for the City of Detroit and to Detroit Mayor Kenneth V. Cockrel Jr. He is now President of North Coast Strategies, which provides cutting edge practical advice where government action or inaction, litigation vulnerability or complex regulatory requirements will impact your reputation and bottom-line. You can reach Cherrin at dcherrin@NorthCoastStrategies.com or (313) 300-0932.