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Harkin, Tom, letterTOM I4ARKIN IOWA WASHINGTON, DC 205'10-1502 July 14, 2003 (202) 224~3254 FAX: {202) 224~9369 I~Y {202) 224-4633 http://har kin.senate,gov AGRICULTURE APPROPRIATIQNS HEALTH, EDUCATION, LABOR, AND PENSIONS SMALL BUSINESS Michael C. VanMilligen City Manager City of Dubuque 50 West 13th Street Dubuque, IA 52001 Dear Michael: Thank you for contacting me regarding the need for federal assistance to the states and localities. It is always good to hear from you. I have been pushing for additional aid to states which fund themselves in severe financial distress. In January, I developed a proposal to provide to the state $10 billion for general assistance. Two of the senators who agreed with my proposal were Senators Snowe (R-ME) and Nelson (D-NE). In fact, they made their support for the omnibus tax bill contingent on the inclusion of state relief funds in the tax package. Thus, their demand effectively required the tax writing committee leaders to include these funds in spite of their considerable opposition. The final tax cut package language provides that the $10 billion in funds committed to the states (not tied to Medicaid) was for "essential services" or for "federal mandates." Unfortunately, these terms are likely to be loosely constructed during t~e actual application of these funds. Personally, I wish that these terms had been more clearly defined to ensure that the funds go to their intended purpose. Be assured I will continue to work to see that the federal government provides this necessary support. However, it is becoming increasingly difficult due to the growing federal deficit. Again, thank you for contacting me. Please don't hesitate to contact my office on any issue of importance to you. United States Senator 150 FIRST AVENUE, NE 210 WALNUT STREET 1606 BRADY STREET 350 WEST 6TH STREET 320 6TH STREET SUIYE 370 73~ FEDERAL BU{LD]NG SUITE 323 315 FEDERAL BUILDING 110 FEDERAL BUILDING CEDAR RAPIDS, IA 5240~ DES MOtNES, IA 50309 DAVENPORT, IA 52803 DUBUQUE, IA 52001 SIOUX CIT~, IA 51¢01 (319) 3654504 (515) 28z~4574 (563) 322-1338 (563) 582-2130 {712) 252-1550