STATEMENT OF HON. MIKE MCCORMACK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON Mr. McCORMACK. Mr. Chairman. I represent the Fourth District of the State of Washington. Both my State and district are suffering unemployment rates far above the national average, and it is imperative that adequate steps be taken quickly to ease the economic distress. Anyone who reads the newspapers is aware of the acute unemployment problem affecting former employees of the Boeing Co. in the Seattle-Tacoma area. Less well known is the fact that in many of the agricultural areas of my district in eastern Washington, an unusual combination of unfortunate circumstances has depressed segments of the farm economy. On top of this, uncertainty surrounding the future of the nuclear reactors at Hanford, following as it does on the progressive closing of all but two of the reactors, make imminent the unemployment of thousands more. Current figures are not available in all areas of the Fourth Congressional District, but most recent unemployment statistics are impressive in illustrating the need for action. The tri-cities area of Boston and Franklin Counties had a classification in December of 1970 of persistent unemployment. These three cities of Kennewick, Pasco, and my hometown of Richland had, a potential work force of 37,630, and of these, 3,860 or 10.3 percentwere unemployed. That was before the administration in January shut down the K and N reactors, announced their permanent closing, then relented a bit to tease us along that perhaps the multipurpose Ñ reactor with its vital electric power facilities might be restored to operational status. Yakima also was listed in January as an area of persistent unemployment. State-insured unemployment payments in January indicated an unemployment rate of 16.6 percent. Walla Walla, another of the important cities in my district, does not have a classification, but the State-insured unemployment payments in January indicated a rate of 11 percent. Insured unemployment in eastern Washington as a whole averaged 142 percent as of February 20, 1971. I believe these examples will demonstrate why I am so concerned, and why I was pleased to join with the distinguished chairman of this committee, John Blatnik; other members of the committee, and John McFall of California in sponsoring one of the bills we are considering. As a new member of the committee, I want to express my appreciation also to those senior members who have sponsored other legislation before us to extend the Economic Development Act which properly funded-can do so much to provide for long-term employment gains in areas like the Fourth District of Washington. We cannot fail to make proper long-term plans, but my purpose here today is to stress the need for emergency, short-term employment possibilities to relieve the economic suffering of so many of my State's residents. There is a need for public works which can be met by the amendment and extension of the Public Works Acceleration Act which has been unused since it proved its value in 1962 and 1963. Many members of this committee helped then to put that law on the books to speed up recovery from the last previous recession which started in the closing years of the decade of the 1950s. You know how well it worked and how it should again help us start recovery from the economic doldrums of 1970-71. Pump-priming may be an old-fashioned term, but it is still needed. By helping many communities which are suffering unemployment rates at least one and one-half times higher than the national average to make public facility improvements and stimulate industrial development, this act can restore confidence among the unemployed and underemployed that their government really cares. I support this legislation and commend the chairman for his determination to move it rapidly to the floor for action. Thank you. The CHAIRMAN. We are anxious to proceed. We will have some very authoritative witnesses as representative as possible of the various aspects as well as of the geographic distribution of the present economic crisis. We open up with Roman Gribbs, mayor of Detroit, Mich., speaking in behalf of the National League of Cities and U.S. Conference of Mayors. is He is also going to give us information on his own situation, which very serious. Mr. Mayor, please take the stand, and you will be in command now. I understand you are accompanied by your own assistant, Norman Miller, and Thomas Cochran, legislative counsel of the National League of Cities and U.S. Conference of Mayors. STATEMENT OF HON. ROMAN GRIBBS, MAYOR, DETROIT, MICH.; ACCOMPANIED BY NORMAN MILLER, ASSISTANT TO THE MAYOR; J. THOMAS COCHRAN, LEGISLATIVE COUNSEL, NATIONAL LEAGUE OF CITIES AND CONFERENCE OF MAYORS; AND LARRY SNOWHITE, LEGISLATIVE ASSISTANT, NATIONAL LEAGUE OF CITIES AND U.S. CONFERENCE OF MAYORS Mr. GRIBBS. Mr. Chairman, I also have Mr. Larry Snowhite here. The CHAIRMAN. I am sure your testimony will be very informative and very helpful to all of us. Mr. GRIBBS. Thank you, Mr. Chairman. Mr. Chairman and members of the committee, as indicated my name is Roman S. Gribbs. I am Mayor of the city of Detroit. I appear here today in support of the Public Works Acceleration Act on behalf of the citizens of Detroit, the National League of Cities and the U.S. Conference of Mayors. I am extremely pleased to appear before this committee because I know the interest you have shown, over the years, in the problems of America's urban areas. Your distinguished chairman, Mr. Blatnik, took the lead in formulating the Public Works Acceleration Act in 1962, a troubled time with great similarity to these difficult days. The wisdom of that legislation was evident in the rising level of prosperity that followed its passage, and in the more than $30 million of physical improvements that took place in the city of Detroit alone. Hospitals were improved, miles of streets were paved, widened and straightened. The Detroit Institute of Arts added a new wing. Last year that great facility served millions of visitors, not just Detroiters, but throughout, of course, the whole metropolitan area and the State of Michigan. Street lighting was installed, sewer projects reduced the threat of flooded basements and the Farmers' Market was modernized. Water lines were installed throughout the Metropolitan Detroit region. I would remind you that the Detroit Water Board now serves almost 50 percent of the population of the State of Michigan and, for the first time, is bringing to millions of residents the best water available. The wisdom, the foresight, the massive injunction of dollars into the economy at that time paid off dramatically. The time has now come to draw upon that experience. H.R. 5376, the Public Works Acceleration Act Amendments of 1971, is urgently needed legislation. Under the bill, $2 billion will be available to communities, such as Detroit, that are faced with severe unemployment problems. This money can provide a vital fresh breath of resources to local communities by creating jobs for the unemployed and building public works which are badly needed, and have been put off because of the growing local financial crisis. I wish to discuss the impact of unemployment and the effects of the urban financial crisis-the two significant factors that now exist which make prompt passage of this legislation vital. Department of Labor Statistics confirm the grim sight we see with our eyes. Throughout the Nation the jobless rate hovers around 6 percent. In Michigan it is 7.8 percent. That is for the entire State of Michigan. Based on a Detroit S.M.S.A. unemployment rate of 8.2 percent, which includes many affluent suburbs, the unemployment rate for the city of Detroit in the month of January 1971 was 14.3 percent-that is for the entire city, that is the fifth largest city in the country, and we have almost a million and a half people—and the rate for the inner city of the city of Detroit is 25.8 percent. In February, let me interject, it was almost the same, 14.1 percent for the city and 24.4 percent for the inner city. Again let me digress and indicate, Mr. Chairman, that if you feel that these may just be recent statistics, I will go back briefly and indicate the monthly unemployment rate for the city, starting with July of last year. In July it was 14.6 percent; August, 14.6; in September and October, it was over 11 percent; in November, it was 13.2 percent; and December, it was 12.5 percent; and it is now, in January and February, over 14 percent for the city of Detroit. Now, there are 135,000 unemployed people yearning for a chance to work in Metropolitan Detroit right now. We know they deserve the opportunity to get a job. But there simply are not that many jobs around. There is a recession in the Detroit construction industry. Thousands of skilled tradesmen are either idle or have only partial employment because capital funds have diminished and public construction has slowed down. In many neighborhoods in Detroit, unemployment for young people, between 18 and 25, and women, approaches 50 percent-almost one out of two without work. This is not a jobless rate, it is a national tragedy. It is an unwarranted waste of human capabilities. It is degrading, frustrating, and humiliating. Many of these jobless can be and should be immediately employed on labor intensive work. This is possible through the Public Works Acceleration Act Amendments of 1971. This legislation has other significant consequences. The revitalization of the construction industry, through this Federal program, will enable us to move speedily to open more jobs in the building trades for black Americans and other minorities. Such an objective, however moral and appropriate, needs jobs so that training can take place in a work situation. Recently, the Reverend Leon Sullivan, a member of the board of directors of the General Motors Corp., and the originator of Opportunities in Industrialization Centers, appeared on network television and warned of the dangers inherent in the masses of Vietnam veterans returning to empty promises. We must do more than thank them for their hazardous service to this country. A job should be a minimum expression of our gratitude and appreciation. The returning veteran complicates matters for the Nation. His human calculus says he is entitled to a job. These veterans will be happy to participate in this imaginative and greatly needed program which will improve the appearance of our cities and provide services in vital areas. You gentlemen have the capacity to create the pattern for a national conversation to a peacetime economy. The war is winding down from all we are told. Veterans are returning and unemployment is rising. Detroit would use public works programs to great effect. The winter is ending and the construction season is just starting. The chuck holes are more numerous than the robins. The streets need to be paved, sewers should be replaced and water lines extended. Rehabilitation must continue at the Detroit General Hospital until a new facility can be constructed. The appearance of parks must be improved. Major construction projects should be undertaken if we are to replace accelerated decay with accelerated progress on public projects which this legislation would stimulate. In our city we could do much to minimize the serious pollution problems that exist. We have planned a conversion of our polluting powerplant. A construction of a transfer facility to eliminate a polluting incinerator and the acquisition of sanitary landfill. These projects have an estimated cost of $4,100,000 and are now stalled simply because of the unavailability of city funds. To illustrate some other things that our city would like to do through this legislation, we propose to construct a new police headquarters and replace police precinct houses which date back to the turn of the century. A new traffic court, branch libraries, main and residential street lighting, regional health centers, restoration of Fort Wayne, stump removal and tree planting, construction of new streets and alleys, traffic control improvements, railroad grade separations, and relief sewers all would be possible under this proposed legislation. These projects total some $97 million. They are all necessary and essential if city government is to maintain its position as the primary source of services to its citizens. These examples are regarded by me as essential. There are of course numerous other projects to improve city life that rest in the minds of many of my coworkers and are never even pursued at the moment because of the known unavailability of funding. It is at the local government level that effects of unemployment, inflation, and other economic problems are most sorely felt. My fellow mayors and I do not have the luxury of being able to go out of business if our problems get too great-nor can we cut out costly activities because they fail to produce enough revenues to support themselves. We must continue to supply services as best we can, even though the level of services is grossly inadequate. When we do cut, it is capital facilities the public works programs that we are discussing todaywhich are often the first to go even though they may be desperately needed. There are no further tax resources available to us. We have increased our excise tax, our income tax, and our property tax to the constitutional limit. It is not just politically difficult, it is illegal for me to raise any more taxes. We cannot count on adequate help, ladies and gentlemen, from State government which is itself over $100 million in the red at this moment. We cannot hold back the effects of inflation or the demands of city employees for a higher rate of pay. We are facing the next fiscal year once again with a cash deficit in the amount of some $15 million and a further revenue gap in the amount of over $50 million. I do not exaggerate when I say to you that I simply do not know where the necessary money to deal with these difficulties is going to come from if it does not come from the Federal Government. Cities have unmet needs and little financial capability to do what they know needs to be done. Nationally, while exact statistics are difficult to gather we know that many urgently needed public works projects are waiting on the shelf needing only dollars and willing workers to make them a reality. The National League of Cities and U.S. Conference of Mayors study, which I presented to the Senate Public Works Committee last month, indicates that the Nation's cities believe that projects costing $33–$37 billion are needed in the next few years to abate pollution from municipal sewage. H.R. 5376, giving priority to pollution abatement projects can greatly aid this clean-water effort. Beyond pollution control we know of other areas of great need which have developed because of difficulties States and localities have faced in selling bonds for needed public works. The Weekly Bond Buyer for March 8 indicates that over $4.4 billion in local projects have failed to receive financing over the past 2 years because of the poor condition of the municipal bond market. These projects are still sitting on the shelf ready to go. H.R. 5376 can make these projects go. Match your concern with realistic compassion and pass this legislation. Set the local contribution at the lowest level reasonable under 58-980 0-71-pt. 1-3 |