Outlook 2012: More Burdens, Better Chance for Cooperation at Home

State and local officials will spend the upcoming year shouldering more burdens due to lack of effective action from Washington, said speakers at Governing's Outlook in the States and Localities conference this week. But the speakers are more optimistic that local leaders can cross aisles and work together to handle such challenges.

The annual two-day conference held at the National Press Club in Washington advised attendees that issues such as structural budget problems, unemployment, increasing costs of health care, and repairing aging infrastructure will continue to be issues that lawmakers address at a time when Congress is looking to reduce federal spending.

Former Comptroller of the United States David Walker kicked off the conference by warning that the nation's entitlement programs are unsustainable and that states need to get their finances in order to prepare for unfunded mandates. “If the feds can’t do it, you will see a proliferation of unfunded mandates,” Walker said.

Former Govs. Ed Rendell of Pennsylvania, Howard Dean of Vermont and John Engler of Michigan spoke to the need for leaders to take action at a time when suggesting additional spending and tax increases to fund needed investments is politically hazardous. In a session on infrastructure, Rendell called out Grover Norquist by name, lambasting the head of Americans for Tax Reform for making tax increases so unpopular at time when the nation's roads need repair.

During a session in which Dean and Engler lamented the lack of political leadership at the federal level, Engler said that infrastructure needs to be an issue that transcends party lines. Dean suggested that current leaders take a look at public-private partnerships to finance investments in lieu of raising taxes.

Connecticut Gov. Dannel Malloy spoke as a lunchtime keynote speaker about the achievements and challenges he faced in his first year in office, which included a new benefit agreement with public-sector unions and attempting to balance the state's budget with increased taxes and cuts in spending. He said that honesty and good communication is key in making big changes.

For additional coverage from Outlook:

• David Walker: States May Shoulder Unfunded Mandates Without Intervention
• Asst. Labor Secretary: States Need to Communicate with Employers to Create Jobs
• Ed Rendell Calls for Infrastructure Investment
• Dan Malloy on His Fixes for the Budget, Benefits and Jobs
• Panel Says Smart Grid Development Critical to Energy Future
• Howard Dean, John Engler Call for Changes in Political Leadership
• OMB Controller Danny Werfel Shares Lessons from Recovery Act
• Denver Post Reporter Wins 2012 Hovey-Harkness Award for Public Service Journalism