On September 26, Steve Sargent, Executive Director of the IML, and I attended a White House briefing on domestic issues with approximately 78 other League Directors and State Presidents.

During both this briefing and a meeting hosted by the National League of Cities, prior to the briefing, good news was in short supply.

While both meetings covered domestic issues, the primary focus was on the GARCIA vs. SAN ANTONIO METROPOLITAN TRANSIT AUTHORITY Supreme Court Case and its dramatic effect upon the Fair Labor Standards Act for state and local governments.

Relief from this devastating supreme court decision, and its effect on the FLSA is available in the form of Senate Bill 1570. However, prospects for its passage at this point are a 50/50 proposition at best.

The National League of Cities is doing all it can to generate congressional and administration support for S.B. 1570. Senators Nickles (R-OK) and Wilson (R-CA) are the sponsors of this legislation, and there are twenty-three (23) Senate co-sponsors. S.B. 1570 contains three (3) major provisions to provide relief for state and local governments.

1. It exempts state and local employees from the overtime provisions of the FLSA,

2. It exempts volunteers who provide services to state and local governments from the wage and hour provisions of the FLSA, and,

3. It sets the effective date of February 19, 1985 for the application of these exemptions.

This act also significantly affects small communities with volunteer fire departments, if volunteers receive more than $2.50 per call for reimbursement of incidental expenses. Under the provisions of the FLSA, incidental costs must be fully and individually documented if they receive more than $2.50 per call, or volunteers are considered full-time employees and must be paid according to the federal wage-hours laws.

While the primary focus of the briefings were on the Garcia case, other domestic issues were also covered. The message was clear: That the administration intends to request again next year all the cuts in domestic programs it did not receive this year.

While the news we received was not good, the White House briefing provided the opportunity for local municipal officials to let their thoughts and needs be known. Now it's up to you to let Senators Dixon and Simon as well as your Congressman know what you are thinking: That for too long the good news has been in short supply. Please contact them immediately. After October 15, it may be too late.

Although no commitments were made, it was my personal impression from the comments of Mitch Daniels, Deputy Assistant to the President and Director of the Office of Intergovernmental Affairs, that the administration will actively support passage of S.B. 1570. Mr. Daniels is a former Deputy Mayor of Indianapolis having served in Senator Lugers administration. He appears to understand the importance of this issue and the impact of the FLSA on state and local government. Additionally, both Senators Dixon and Simon have indicated a need to provide relief from the FLSA for local governments. It is imperative that you contact Senators Dixon and Simon as well as your Congressman to let them know what impact the Garcia case will have on your community.

Illinois Congressmen Henry Hyde, Harris Fawell, John Grotberg, and John Porter have sponsored other bills in the U.S. House of Representatives to provide Local Government relief from the FLSA. It was the feeling of both the administration and the NLC that only S.B. 1570 has a chance of becoming law.

The NLC indicated that congressional action must take place before October 15, or chances of Congressional relief will be slim. While it anticipates quick Senate action, the NLC sees problems with passage of S.B. 1570 in the House of Representatives.

The impact of the Garcia case will be felt from the smallest village in Illinois to the City of Chicago. The major financial impact will be in the elimination of "comp" time and the requirement that covered employees receive cash payments at the rate of time and one-half for overtime. These requirements amount to direct Federal interference with the operation of city government and adds significantly to costs, particularly for police and fire.

September 1985 / Illinois Municipal Review / Page 5