Washington Outlook
Edited by Richard S. Dunham
America's Cities Are Seeing Red over Code Orange
When Homeland Security Secretary Tom Ridge ratcheted up the terrorism alert to Code Orange for the third time this year, police nationwide took up their now-familiar stations at tunnels, airports, and bridges. Meanwhile, down at local city halls, cash-strapped mayors were forced to cut services or raise taxes to pay for the ballooning overtime bills caused by vague warnings from Washington.
The U.S. Conference of Mayors estimates that Code Orange costs localities a total of $70 million per week, mostly in police, firefighter, and emergency medical worker overtime. "Homeland security is expensive," says Baltimore Mayor Martin O'Malley, who chairs the conference's homeland security task force. "We cannot fund it on the proceeds from property taxes and firehouse bingo nights." O'Malley has had to pull police from antidrug and detective work and spend $300,000 each week to comply with a high alert. "Providing for the common defense...has become a local mandate," he says.
Not only a mandate, but a huge, new, unfunded one -- just the kind of heavy-handed Washington policy President Bush decried as a candidate in 2000. Indeed, Democratic Presidential candidates have begun to bash Bush for leaving local officials holding the bag for much of the domestic defense against terrorism. Senator Joseph I. Lieberman (D-Conn.), for example, wants to more than double federal aid to local first responders, calling the current arrangement "crazy" as cash-poor cities lay off firefighters. The weekly burden of a Code Orange varies widely, according to a recent 150-city Conference of Mayors' survey, from zero in Sugar Land, Tex., to $5 million in New York City. The estimated cost to cities for just six months of Code Orange: $1.8 billion.
Amid the clamor and partisan finger-pointing, there are faint signs that Washington and City Hall might be moving -- haltingly -- in the same direction. One bit of evidence: Ridge proposes to direct federal reimbursements to the most likely targets, such as New York, Washington, Chicago, Los Angeles, and San Francisco. That would mark a shift from last year's congressionally mandated formula to distribute $200 million in anti-terrorism aid: It wound up delivering the highest per capita payments to rural states such as Wyoming ($9.78), Vermont ($8.15), and Alaska ($7.97), while shortchanging megastates such as California ($1.33) and New York ($1.38). In another step toward greater rationality, the Administration is requiring each state to complete its own "vulnerability assessment" that could provide the basis for more scientific federal allocations.
Yet, assuming Ridge's initiatives bear fruit, at-risk cities still fear being shortchanged. One reason: This year's $700 million in "high-threat grants" must be funneled through often-hostile state capitals, which can legally skim off 20% for administrative and other security expenses. Procedural delays may add months to the process. In the meantime, local law enforcement is being forced to bear most of terror's burden. San Diego, for example, says it is spending $100,000 a month at its airport to conduct the random car searches required by Code Orange. At Memorial Day weekend's Indy 500, Indianapolis had 40% more officers on duty than in years past. Even peaceful Grand Rapids, Mich., is spending $23,000 a week during high alerts.
Still, after more than a year and a half of promises from Washington, mayors are starting to see some money coming their way. With luck -- and a quick end to the current Code Orange -- they might just be able to pay the price of security.
By Paul Magnusson
CAPITAL WRAPUP
Heavy Equipment
Detroit made out like a bandit in the new tax bill, and the environmental lobby is fuming. It's all because of the fine print allowing small-business owners to deduct up to $100,000 in office-equipment purchases, up from $25,000. Included as equipment are light trucks weighing over 6,000 pounds. That covers many SUVs, including gas-guzzling Hummers and Range Rovers, according to the Natural Resources Defense Council. Senator Barbara Boxer (D-Calif.) vows to close the SUV loophole this summer, perhaps by attaching a repeal provision to the Bush Administration's energy bill.
CAPITAL WRAPUP
Spammer-in-Chief
President Bush doesn't use e-mail, because of the battle over Clinton-era White House messages. But he made an exception on May 24, when his reelection committee sent out a mass e-mail in his name. The missive warned supporters that the 2004 election "could be close," so "I need the help of friends now." Bush requested online contributions of $750 to $1,000.
CAPITAL WRAPUP
The Maine Event
Since a May 19 Supreme Court ruling allowing Maine to use its purchasing power to wangle discounts from drug companies, more than 20 states are poised to follow suit. But the high court added that a district court would determine if federal Medicaid law preempts Maine state law. If the Administration argues for preemption, it will please drug industry supporters while making millions of elderly voters very unhappy. If it doesn't, it angers a powerful lobby. Aspirin, anyone?
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