WHEREAS:

The U.S. economy has been battered by more than 20 months of recession, which is continuing to take its toll on working men and women as the nation is locked in a vicious downward cycle of production cuts, job losses, wage reductions and decreased consumer spending; and

WHEREAS:

State and local governments are facing the most severe fiscal crisis since the Great Depression, and at the same time that revenues are declining because of the prolonged recession, state and local governments must provide more services to citizens coping with the recession; and

WHEREAS:

Throughout the 1980's, the Administration and Congress have squeezed the budgets of state and local governments in an ever-tightening fiscal vise by reducing federal support by approximately 40 percent while requiring additional public services; and

WHEREAS:

In 1991, governors and legislators had to close a fiscal gap of some $50 billion in order to balance their current budgets and this year even worse cutbacks are expected as at midpoint in the current fiscal year, 30 states are reporting revenue shortfalls, 25 are experiencing higher-than-expected spending and 20 are both long on spending and short on revenue; and

WHEREAS:

Since state and local governments cannot run operating deficits, any actions they take to meet the fiscal crisis by either increasing taxes or spending cuts, will end up being a further drag on the national economy; and

WHEREAS:

A major force behind the current economic slump is low consumer confidence and neither reduced interest rates nor tax cuts are enough to bring about economic recovery; and

WHEREAS:

Any economic recovery will require government action to restore confidence by taking immediate action which strengthens vital services and reemploys laid off workers.

THEREFORE BE IT RESOLVED:

That AFSCME strongly urges Congress to allocate at least $35 billion to state and local governments based on the proportion of total grants-in-aid they currently receive, that each state and locality would be authorized to use the funds only for public safety, health, education, social services and environmental services, and that such funds must be used to rehire laid off workers, restore cut services, or expand existing programs that are overburdened; and

BE IT FURTHER RESOLVED:

That AFSCME members contact their Senators and Representatives and urge them to support an emergency supplemental appropriations measure allocating immediate fiscal relief to fiscally stressed state and local governments; and

BE IT FINALLY RESOLVED:

That AFSCME continue to support elimination of the so-called "fire walls" in the federal budget legislation that prevents allocating savings from cuts in defense expenditures to essential domestic social programs.

SUBMITTED BY:

INTERNATIONAL EXECUTIVE BOARD