In addition to representing municipal interests on state legislation, CML is active at the federal level, and has outlined a set of legislative priorities.
CML also is a founding member of the National League of Cities. To view the National League of Cities legislative agenda, click here.
National League of Cities provides budget trackers for each fiscal year, outlining the impact the federal budget has on cities and towns. Visit the NLC website to view the Fiscal Year 2019 Budget Tracker or the Fiscal Year 2018 Budget Tracker.
In January, 2018, National League of Cities launched Rebuild With Us, a national campaign dedicated to strengthening the federal-local partnership with investments in transportation, water, workforce, and broadband infrastructure. CML stands with NLC in recognizing the importance of a strong federal partner in supporting and funding infrastructure projects to promote the environmental, social, and economic development of our country while acknowledging local decision-making authority. Please read on for a message from CML Executive Director Sam Mamet concerning the Congressional infrastructure debate:
Congressional infrastructure debate underway
President Trump recently unveiled his 53-page infrastructure
plan. He advocates a focus on a $1.5 trillion plan over a ten-year period
involving both the interests of the states and of local governments, especially
cities and towns.
At its core, the President’s plan would put forward $200
billion to stimulate the extra $1.5 trillion investment. The $200 billion will
essentially come from a “repurposing” of Amtrak and transit dollars, and would
be distributed in this manner:
The proposal also recommends lifting a number of
restrictions on the use of private activity bonds. President Trump also calls
for a very aggressive timetable for speeding up federal permit reviews and
lifting some regulatory restrictions to help reduce the costs of state and
The White House also wants to include changes to the help
the workforce build infrastructure by expanding Pell grant eligibility beyond
four-year college students among other things.
A large part of the proposal places the states, local
governments, and the private sector at the forefront on how to move project
financing forward. Many questions remain as to how this will be implemented. We
appreciate the Administration’s opening bid, which clearly “goes big” in
Congress plays the key role now. There will be dozens of
committees in the House and Senate which will examine parts of this plan, as
well as generate other ideas.
There is going to be a lot of “horse trading” as the
Congress debates the matter. CML will be communicating often to the members of
our delegation, Reps Coffman, DeGette, Buck, Lamborn, Polis, Tipton, and
Perlmutter, and Sens. Bennet and Gardner.
In January, we visited with the staffs of all of the members
to lay the foundation for the heavy lifting which now awaits. In mid-March,
over 60 Colorado municipal leaders will be back in DC “on the Hill” lobbying
the state’s House Members and Senators Bennet and Gardner. This will be part of
the annual National League of Cities Conference in Washington.
In the meantime, we are interested in hearing from you. In
How all this will gibe with some severe cuts in domestic
spending the Administration is proposing like in CDBG, EPA grants, and
affordable housing is unsettling.
Finally, the impact on the federal deficit of the
President’s plan, on top of that which was caused by the recently enacted
federal tax reform legislation, are hugely unanswered.
all of this has a ways to go. Your input and guidance will be appreciated.
For a clear understanding of the reasons it is necessary to close the online sales tax loophole, please read this guest post by Lisa Soronen, State and Local Legal Center executive director, on the Municipalities Matter blog. National League of Cities also provides a brief explainer on the harm this loophole causes to municipalities, including our members. Over the past several years, members of Congress have introduced versions of a Marketplace Fairness Act, and CML will continue to support this legislation.
On December 22, 2017, President Donald Trump signed H.R. 1, the Tax Cuts and Jobs Act, into law.
Routefifty.com provides a rundown of some of the major provisions that have implications for state and local governments.
State and Local Tax (SALT) Deduction
The Tax Cuts and Jobs Act caps the deductions for state and local income, sales, and property taxes at $10,000. In addition to hurting municipalities, these changes will negatively impact Title 32 special districts, counties, and school districts.
For an explainer on SALT, and on the consequences of eliminating it, please watch this short video produced by Rockefeller Institute of Government.
The Historic Preservation Tax Credit, which encourages the redevelopment of historic and abandoned buildings, is modified by the bill.
The federal income tax exemption on municipal bonds benefits all Americans by incentivizing private individuals, mutual funds, and financial institutions to purchase the bonds, even with a lower interest rate. The lower interest rate in turn saves local governments an average of 25 to 30 percent on interest costs, allowing more funds to be directed toward critically important public infrastructure projects. CML commends Representatives Mike Coffman and Scott Tipton for being two of the 156 co-signers in a letter to the ranking members of the Ways & Means Committee supporting continued protection of municipal bonds.
The Tax Cuts & Jobs Act does not alter the current tax exemption for municipal bonds or private activity bonds (PABs). PABs provide financing for important qualified projects and programs, such as affordable housing, economic development, hospitals, educational and cultural facilities, and much more.
The bill eliminates the exemption for future advance refunding bonds, which are used by state and local governments to refinance debt and therefore save on borrowing costs.
Though the final tax bill has only one change to the municipal bond market, the elimination of the tax exemption for advance refunding bonds, market experts warn that it has the potential to radically transform the market, leading to lower demand for municipal bonds, greater volatility in the market, and costly alternative options to advance refundings.
CML remains committed to protecting the interest of its member municipalities and thanks local elected officials across the state for reaching out to the Colorado Congressional delegation, as well as municipal leagues across the country and the National League of Cities for their advocacy work protecting municipal interests.
Sen. Michael Bennett
Sen. Cory Gardner
Rep. Diana DeGette (1st District)
Rep. Jared Polis (2nd District)
Rep. Scott Tipton (3rd District)
Rep. Ken Buck (4th District)
Rep. Doug Lamborn (5th District)
Rep. Mike Coffman (6th District)
Rep. Ed Perlmutter (7th District)
Federal Relations Update is an electronic publication of the National League of Cities.