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Local officials are lauding a provision in the bill to create a Homeland Security Department that would clarify rules allowing federal law enforcement authorities to share sensitive information with state and local counterparts. But at the same time, they are expressing concern over budgetary delays halting the distribution of funds to local and state emergency "first responders."

"We're pleased that the homeland security reorganization is going through, but the funding issue is left unresolved," Andrew Solomon, a spokesman for the U.S. Conference of Mayors, said on Tuesday. "These cities are in a really difficult position. They've been forced to spend millions" of dollars for national security improvements without federal aid, he said.

The bill would allow federal agencies to share intelligence and other information related to homeland security with local-level peers. "It specifically clarified the rules of criminal procedures," such as grand-jury information, Solomon noted. The measure also states that the spirit of information sharing should be cooperative, he said.

Dalen Harris, who specializes in homeland security issues for the National Association of Counties, said his members are pleased that the proposed department would include an office to coordinate state and local efforts.

"We still don't know the impact as far as the liability issue," he said, referring to a provision that would limit liability for makers of homeland security technologies. "It may place undue burden on local governments."

Local emergency-response officials are criticizing Congress for its failure to pass the Bush administration's requested $3.5 billion, targeted to help police, fire and other emergency organizations upgrade equipment, hire more workers and offer services now required under homeland security mandates. The funds were included in now-stagnant spending measures.

Congress passed a resolution that will keep federal spending at current levels until the House and Senate return in January when they will address the remaining fiscal 2003 appropriations bills.

"Congress really dropped the ball on that," Harris said, referring to funding for the states and localities. The delay in dispersing the first-responder funding "puts [localities] in a really difficult position," Solomon said, adding that until Congress acts, there will be no "significant national funding for cities for homeland security."

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