LTC 547-2016 Post-Election Implications for Miami Beach MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 547-2016 LETTER TO COMMISSION
TO: Mayor Philip Levine and Members of e City Corn ssion
FROM: Jimmy L. Morales, City Manager
DATE: December 16, 2016
SUBJECT: Post-election Implications for Miami Be ch
The purpose of this LTC is to provide the Mayor and Commission with a copy of a post-
election memo provided by Marilyn Thompson (WAS-MWW), our federal lobbyist. The
memo provides you with information regarding the new administration, Congress,
agencies, as well as policy decisions which are most relevant to Miami Beach. The
memo will be updated and shared via LTC as additional information becomes available.
If you have questions or would like additional information please contact Erick Chiroles.
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MEMORANDUM
To: City of Miami Beach Leadership
From: Marilyn Thompson (WAS-MWW)
Chair, Federal Practice
Ellen S.Smith
Vice President
Re: POST-ELECTION, PLANNING FOR NEW CONGRESS, NEW ADMINISTRATION --
IMPLICATIONS FOR MIAMI BEACH
Date: November 28, 2016
This will be the first in a series of"Transition, Post-Election" Reports to provide you with
information regarding the new Administration as it evolves, the new Congress and the
Florida Delegation, key dates and a timeframe for the Miami Beach agenda and priority
setting, and advocacy activities. Information about significant personnel and policy
decisions by the President-Elect and the Transition Team continue to pour out almost
hourly. This initial outline will attempt to focus this information and developments on
those appointees, agencies and policies most relevant to Miami Beach and Florida.
CONGRESS
Congress returned on November 14th, 2016 to complete the work of the 114th Congress,
2nd Session, and consideration of several key measures that will affect federal funding and
policies relevant to Miami Beach, state and local governments and key populations. These
include:
The FY2017 Budget
Finalizing a budget and appropriations bill for FY2017, which began on October 1st is the
major challenge. This measure will affect the flow of federal funds for the remainder of the
fiscal year until September 30, 2017. Federal agencies are currently operating under a
Continuing Resolution which enables them to spend only at current funding levels,
precludes them from starting any new programs or initiatives, and forces federal agencies
to operate under a very constrained budget.
The current Continuing Resolution (CR) expires on December 9, 2016. A new Continuing
Resolution will be needed thereafter if a government shutdown is to be avoided. This year
the House and Senate each did complete action on all of the 13 appropriations measures
that make up the federal budget. They needed only to finalize a joint House-Senate
negotiation and agreement. This was what was hoped for and planned before the Election.
However, the new President-elect and new congressional Republican leadership
announced that instead of completing these negotiations in December and by the 114th
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Congress, that they wanted to wait until the new President took office and the new
Congress was seated, and could impose their approaches and priorities on the final FY2017
budget. Their tentative agreement calls for an extension of the CR until April 28th. Until
then, current restrictions would continue to apply, i.e., funding effectively frozen at FY2016
levels and no new programs, initiatives. Thereafter the FY2017 budget could be finalized
for the remaining months of the Fiscal, or the new Administration and new Congress could
agree to just let the CR stay in place for the rest of the year.
While many assumed that this pronouncement of preference would stand, there are still
rumblings of profound disappointment after all of the work of a year to finalize bi-
partisan FY2017 budgets for each and every federal agency and program, and
disagreement-- especially among Members of the Appropriations Committees, on a
bipartisan basis, and key "communities" who are particularly desperate for a new FY2017
budget. This is particularly true of the Department of Defense and Military who are
pressing hard for early action on a full, new FY2017 measure.
So, when Congress returns for the week of November 28th, whether to yield to this delay
or to press forward and "finish" will be foremost on the Congressional agenda. Again, the
options will be:
(1) Use the remaining weeks of December to complete a new budget agreement for
FY2017, extending the current CR while negotiations are concluded, but only until
December 31, 2016.
(2) Agree to extend the current CR until April 28th, 2017 and use this December-April time
to negotiate a revised budget agreement.
(3) After April 28th, agree to extend the CR for the rest of the fiscal year, through to
September 30th; possibly making exceptions for certain agencies like Defense, among
others.
For Miami Beach, and state and local governments generally, they will lose significant new
funding authority and opportunity if a full, new budget is not approved. We have provided
you with a list of the top 25+ programs that we monitor for the City and whose funding
levels and grant activity will be significantly affected.
Recommendation: This is the time for the City to consider advocacy steps to protect and
support those programs of most importance and potential support to the City. We
recommend a strong letter urging support of the programs most crucial to the City's
needs and objectives,to key Members of the Florida Delegation, and key Members of
the Appropriations Committees.
Other Critical Measures
Congress will also be considering other actions that need resolution before the end of the
Calendar
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Year, and/or take early action on measures of particular importance to the new
Administration, and/or the emboldened Republican-led Congress, including the reversal or
modification of certain Obama policies. Tax Reform, Immigration and health would appear
to top that list.
THE FLORIDA DELEGATION
Retiring Members or Election Losses
The December Session will also see the last few weeks of several key Members of Congress
in senior positions either because of retirement or an election loss on November 8th or
primary contests. These will trigger campaigns to replace them in key Committee and
Leadership roles.
Nationally most attention has gone to the retirement of the Senate Minority Leader, Harry
Reid. He is now replaced by Senator Charles Schumer of New York, a good friend to us, and
to our city issues. But there are several Floridians, indeed, nine (9) who will no longer
return, and these are:
(1) Congresswoman Corinne Brown (D), 5th District, defeated, who played a major role as
one of the senior-most Members of the powerful Transportation and Infrastructure
Committee, a strong friend of Florida cities.
(2) Congressman John Mica (R), 7th District, who was formerly the Chairman of the House
Transportation and Infrastructure, who remained a powerful and senior Member in
support of Florida needs after ceding the chairmanship.
(3) Congressman Jeff Miller (R), 1st District, who retired, and who was Chairman of the
Veterans' Affairs Committee.
(4) Congresswoman Gwen Graham (D), 2nd District, who retired, and plans a run for
future, higher office in Florida.
(5) Congressman Ander Crenshaw (R), 4th District, who was a very senior Member of the
House Appropriations.
(6) Congressman Patrick Murphy (D), District 18, who stepped down from the House to run
for Senate against Marco Rubio.
(7) Congressman Clawson (R), 19th District, retired.
(8) Congressman Alan Grayson (D), who stepped down to run for the Senate, lost in
primary against Murphy.
(9) Congressman David Jolly (R), 13th District, who was defeated by Charlie Crist (D).
The New Congress and the New Florida Congressional Delegation
The 115th Congress will be sworn in and seated the first week of January, with an
unprecedented number of new Florida Delegation Members, i.e., 10, out of 27 Members.
Florida will see an overall loss of two Democrats and two Republicans, and the loss of some
serious "clout" and Members in Chairmanship/Ranking positions--
Mica at the helm of Transportation and infrastructure; Corinne Brown as the Ranking on
Veterans and a very senior Member of Transportation and Infrastructure, and Jeff Miller at
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the helm of Veterans, loss of two Members on the Appropriations Committee (Jolly,
Crenshaw).
These are the new Florida Members:
(1) Congressman Matt Gaetz (R), 1st District, replacing Jeff Miller (R)
(2) Congressman Neal Dunn (R), 2nd District, replacing Gwen Graham (D)
(3) Congressman John Rutherford (R), replacing Ander Crenshaw (R)
(4) Congressman Al Lawson (D), 5th District, replacing Corinne Brown (D)
(5) Congresswoman Stephanie Murphy (D), District 7, replacing John Mica (R)
(6) Congressman Darren Soto (D), District 9, replacing Alan Grayson (D)
(7) Congressman Val B. Demings (D), District 10, replacing Dan Webster who moved to a
different district
(8) Congressman Charlie Crist (D), 13th District, defeating David Jolly
(9) Congressman Brian Mast (R), replacing Patrick Murphy (D) who ran for Senate and lost
to Marco Rubio
(10)Congressman Frances Rooney (R), District 19, replacing Clawson, who retired.
They will not receive their Committee assignments until January when the new Congress
formally organizes.
They will be sworn in on January 3, and we can expect a number of Florida delegation
"events" to honor them, and the Florida delegation as a whole. City presence during the
swearing in ceremonies would be something to be considered.
Those 20 House and Senate Florida Members re-elected:
While several of the Members of the delegation sit on Committees of importance to
Miami Beach, those highlighted in bold below play the most critical roles.
(1) Senator Bill Nelson (D) (Senate Commerce, Armed Services, Aging)
(2) Senator Marco Rubio (R) (Commerce, Foreign Relations, Small Business)
(3) Congressman Ted Yoho (R), 3rd District (Agriculture, Foreign Affairs)
(4) Congressman Ron DeSantis (R), 6th District (Foreign Affairs,Judiciary)
(5) Congressman Bill Posey (R), 8th District
(6) Congressman Daniel Webster (R), formerly 10th) (Transportation and Infrastructure)
(7) Congressman Rich Nugent (R), 11th District (Armed Services)
(8) Congressman Gus Bilirakis (R), 12th District (Energy and Commerce, Veterans)
(9) Congresswoman Kathy Castor(D), 14th District (Budget, Energy and Commerce)
(10) Congressman Dennis Ross (R), 15th District (Financial Services, HUD)
(11) Congressman Vern Buchanan (R), 16th District (Ways and Means)
(12) Congressman Tom Rooney (R), 17th District (Appropriations, Intelligence)
(13) Congressman Alcee Hastings (D), 20th District (Rules)
(14) Congressman Ted Deutch (D), (Judiciary, Foreign Affairs)
(15) Congresswoman Lois Frankel (D), 22nd District
(16) Congresswoman Debbie Wasserman Schultz (D), 23rd District
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(17) Congresswoman Frederica Wilson (D), 24th District
(18) Congressman Mario Diaz Balart (R), 25th District
(19) Congressman Curbelo (R), 26th District
(20) Congresswoman Ileana Ros-Lehtinen (R), 27th District.
Where Do They sit, Key Roles, Positions?
Agriculture: 1; 1 lost (Graham)
Ted Yoho
Appropriations: 3 members, 2 lost (Jolly, Crenshaw)
Mario Diaz Balart (Subcommittee Chair, Transportation)
Debbie Wasserman-Schultz (ranking Democrat, Legislative)
Tom Rooney
Armed Services: 1; 2 lost (Miller, Graham)
Rich Nugent
Budget: 2
Mario Diaz-Balart
Kathy Castor
Education and the Workforce: 2
Carlos Curbelo
Frederica Wilson
Energy and Commerce: 2
Gus Bilirakis
Kathy Castor
Financial Services: 2, 1 lost
Bill Posey
Dennis Ross
Foreign Affairs: 3, 2 lost
Ileana Ros-Lehtinen
Ron DeSantis
Ted Deutch
Judiciary: 2
Ron DeSantis
Ted Deutch
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Rules: 1
Alcee Hastings
Sci/Technology: 1
Bill Posey
Transportation and Infrastructure: 3; 3 lost (Mica, Brown Murphy)
Dan Webster
Carlos Curbelo
Lois Frankel
Ways and Means: 1
Vern Buchanan
Veterans:1; 2 lost (Miller, Brown)
THE NEW ADMINISTRATION/KEY ISSUES/POSITIONS, INITIATIVES-- MOST RELEVANT TO
MIAMI BEACH, STATE/LOCAL GOVERNMENTS
An Initial Review
Reports on these key appointments and issues continue to evolve. This is a preliminary
overview of those areas where potential changes may be of particular interest to the City.
In any case, these are among the top arenas we shall be watching closely for the City, both
for signs of promise and opportunity., and to preclude any proposals with negative
implications for the City.
THE NEW ADMINISTRATION
Please be assured that we very carefully tracking all developments involving the Transition
-- both personnel and policy.
The most critical Cabinet appointments for local government issues are: Transportation,
HUD, Commerce,Treasury/OMB, HHS, Education,the Attorney General, Labor and
HHS. Certainly, there are others, but these would be the core cluster of Cabinet Members
overseeing and shaping the budgets and policies most directly relevant.
--TRANSPORTATION: Elaine Chao,former USDOL Secretary, wife of Senate Majority
Leader McConnell
--COMMERCE: Wilbur Ross, CEO, investor
--ATTORNEY GENERAL: Senator Jeff Sessions,Alabama
-- HHS: Congressman Tom Price, Georgia
-- EDUCATION: Betsy DeVos.
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There are still several candidates for the remaining posts most relevant to the City of
Miami Beach interests --Labor, HUD,Treasury/OMB. Of course, it has been widely
reported that Dr. Ben Carson is being considered for the HUD post. This is not a
recommendation that many in the housing, community and urban development
communities are enthusiastic about, given the lack of background in these arenas that is at
least evident. This leaves us awaiting final nominations for HUD, Labor, Treasury/OMB to
be announced.
The Transition Team: We are, of course, also tracking the Transition Team, which includes
Floridian Pam Bondi, and each of the major policy area and agency "landing teams".
A FINAL FY2017 BUDGET, AND A NEW FY2018 BUDGET
Earlier we discussed the ins and outs of the still-remaining-to-be-done FY2017 Budget and
implications for the City. As noted, whether they truly finish a comprehensive package for
the current fiscal year, or just cede the process to a Continuing Resolution, we will be doing
an in-depth analysis for the City of the outcomes and the opportunities.
However the FY2017 Budget is concluded,the new Administration must develop and
submit a new budget for FY2018 by the first week of February on February 6. With this
statutory requirement fast-approaching on a new Administration, it is expected that the
new Administration will submit more of an outline on February 6, to be followed with a
more detailed, and comprehensive Budget Proposal coming somewhat later.
INFRASTRUCTURE
This initiative has received extensive attention, and raised many hopes, particularly among
state and local governments. The number most often thrown about is $1 Trillion
and for infrastructure well beyond, but including, roads and bridges. The initial advice we
would give you is to "ready your portfolios". What the eligibility criteria will be remains to
be seen -- e.g., whether "shovel-ready" will again be a requirement and how that will be
defined. I still stand with that advice, but there are looming questions about how this
initiative will be structured, much less paid for. The Trump campaign proposal is not what
many had hoped for, utilizing instead tax credits and debt, which would primarily support
private investors and investments, who could ultimately own the project, and which would
bring into question how much new building would actually occur.
Funding of the initiative is far from decided. Many in Congress want actual appropriated
funds dedicated to infrastructure and public facilities from transportation, to education,
science and technology; health and biomedical science. How one pays for this more
traditional approach is certainly a major issue. Reigning in tax breaks for US businesses
moving abroad is the most-often cited source, but that alone not sufficient.
Nevertheless, the feeling is that tax reform will need to be done first,to ascertain what
revenues they can raise through changes in the tax code.
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AN INNER-CITY INITIATIVE
The night of the Election, one of the very first things President-Elect Trump referenced was
a need to focus on the inner-cities. This suggested that we might have the first rewrite of
the National Urban Policy since the 1979 Carter Urban Policy that gave us pro-city
programs in urban development (the UDAG program and a targeted CDBG program), in
support of parks and recreation infrastructure and programs, in support of housing and
economic development; and crime prevention.
And since that night, not another significant reference. Perhaps it has gotten lost in the
hype over an infrastructure initiative, but with the appointment of a strong Commerce
Secretary, Ross, perhaps we will yet see some action in this arena.
Now, HUD should be a critical agency with a major role in both an Infrastructure Initiative
and an Urban/Inner-City Initiative, but with the candidates currently cited for this role,the
HUD role and Trump HUD policies are just not clear.
TAX REFORM
This remains high on the agenda for the new Administration, and for the new
Congress. We will need to watch this arena closely for both opportunities in the tax credit
and bond/development arena, as well as for pitfalls, policies that may indirectly have
negative implications for the global economy of the city.
CLIMATE CONTROL
Initially, we would have cited this as a leading negative prognosis as far as the City's needs
in coastal erosion prevention, rising sea levels, beach nourishment, given the President-
elect's history of opposition to the concept of global warming and climate control
policies. More recently, we hear that a possible softening may be in the mix. Rather than
to assume that his positions to date will not bode well for the city, perhaps, the City needs
to reconsider a very pro-active effort to see Miami Beach identified as a national
demonstration project to stave off coastal erosion, make beach renourishment initiatives
more effective, and a model city for strategically and effectively planning to meet the
coastal erosion challenge.
We will need to watch the Army/corps of Engineers budget carefully, as well as the Water
Resources and Development legislation, and the Energy and Water Appropriations Bill.
IMMIGRATION
While the wall will take 2nd, 3rd, 4th place position now, with border security coming first,
deportation of criminal illegals next. For the City, the issue will be the magnitude of
undocumenteds that could get caught up in new policies -- what happens with the
Dreamers, DACA,the treatment of children, the preservation of the e family unit. We will
be watching this very closely.
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CRIMINAL JUSTICE AND HOMELAND SECURITY
These are also two arenas where the next steps and proposals are not yet clear, but where
there may be some promise. Homeland Security sensitive facilities protection is high on
the list, as is promised support to cities for criminal justice/crime prevention/law
enforcement activities. Gun control related measures are unclear.
HEALTH, PUBLIC HEALTH DISASTERS, ZIKA AND BEYOND
While the main focus within the health community is the rewrite/repeal of the ACA, which
we will also be tracking, more specifically we recommend focusing on securing funding for
a new class of disasters-- public health disasters, but with funding not going only to states,
and then to counties, but to help support city-based costs and needs. There is some
momentum ongoing to push this concept forward.
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