Mayors want bailout money for cities

[Ordie]

A case can be made if the bailout monies were to fund "Local" infrastructure projects to keep local communites working and sustain themselves during economic hardships.



Mayors want bailout money for cities

Associated Press
Saturday, November 15, 2008
Mayors of three cities hit hardest by the economic crisis - Philadelphia, Atlanta and Phoenix - asked the federal government Friday for a piece of the $700 billion bailout package, saying they need help just like financial institutions.
Mayor Michael Nutter of Philadelphia said he wants "to make sure that cities and metro areas are at the table, that their voices are being heard, that our challenges and problems are well understood, so that we can get relief."
The mayors proposed providing loans to help cities pay pension costs. They also want $50 billion in loans for infrastructure investments and additional one-year loans to cities that are unable to borrow cash because of tight credit markets.
"The future prosperity of this country is tied directly to our ability to provide basic services and quality infrastructure to our citizens," Atlanta Mayor Shirley Franklin wrote in a letter to Rep. Charles Rangel, D-N.Y., the chairman of the House Ways and Means Committee. "We are at serious risk in failing in that most basic public responsibility."
Illustrating the complexity of the situation, San Jose Mayor Chuck Reed said early Friday that he planned to request 2 percent - or $14 billion - of the federal government's bailout package to pay for mass transit improvements and expansion of the area's clean-technology businesses. Hours later, he issued a statement saying he would not ask for any of that money, unlike Philadelphia, Atlanta and Phoenix.
President-elect Barack Obama has called for some sort of aid to state and local governments so they do not have to raise taxes or lay off workers while the federal government tries to revive the economy. But he has not proposed or endorsed a specific plan.
The mayors made their request in a letter to Treasury Secretary Henry Paulson.
Asked about the request, a Treasury spokeswoman referred to Paulson's statement Wednesday that assistance to state and local governments was not the purpose of the bailout funding.
U.S. cities have seen revenue fall 4.3 percent from last year, according to Chris Hoene, director of policy and research at the National League of Cities.
For the first time since 1985, a survey showed that revenue from property, income and sales taxes are all down simultaneously, and widespread cuts in services are likely, he said.
New York City Mayor Michael Bloomberg said he is open to receiving federal assistance, but he doesn't think it's likely.
"We would certainly love to have our share of it," he said Friday. "Everybody's lining up now. There's no industry that isn't saying 'We need a bailout.' There's no government entity that all of a sudden isn't saying 'We need a bailout.' "




Source:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/15/MN13144OPL.DTL&type=printable

[brainplay]

They already get bailouts, its called pork. Some of the things mentioned aren't even critical, they're expansion projects. Jeez, who's next to ask for a handout?

[philbob]

A case can be made if the bailout monies were to fund "Local" infrastructure projects to keep local communites working and sustain themselves during economic hardships.


Source:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/11/15/MN13144OPL.DTL&type=printable

If they want these things then they should cut local programs first, seattle for example has a tax where for every public project there is some precentage of it needs to go into a public art project then of course there is welfair and unemployment and food stamps....

[Horizon]

If they want these things then they should cut local programs first, seattle for example has a tax where for every public project there is some precentage of it needs to go into a public art project then of course there is welfair and unemployment and food stamps....

Welfare and unemployment and food stamps....is amateurism, the real deal is asking $85 billions from taxpayers, and spending $440.000 of food stamps having good time.

[11 Bravo]

A case can be made if the bailout monies were to fund "Local" infrastructure projects to keep local communites working and sustain themselves during economic hardships.
[/url]

The floodgates are open baby !. All the demoslobik interest groups see money money money and they all want some of that pie !.Next thing you know the big union ravaged types will wnat some..oh yeah forgot "detroit" wants a huge chunk to stave off the collection agencies for their own frakups and union bloodletting of their business models.
Jeez where where the days when capitolism was allowed to work and a crash and burn allowed the phoenix to arise out of the ashes without all this pork barrel "bailout/handout" chicanery.

[Flagg]

Businesses and families under financial stress.

Municipalities and states see shrinking revenue in their tax revenue "business".

The BIGGEST single overhead/cost is typically employed labour and retired labour.

If you cut current labour or retired labour benefits you lose votes and don't get re-elected.

The incredibly overindulgant and ultimately unaffordable pension costs are going to cripple municipal and/or state budgets.......or result in a lot of suddenly broke retirees.

Every way it ends the same

[Ordie]

The majority of public works projects are funded locally usually through a 1/2 cent sales tax. On top of this, major projects are funded by bonds sold through investors. This is not free money and lately cities got a double whammy due to a reducion of sales tax revenues and higher interest rates on the bonds.

Earmarks are not a reliable soure of funding usually with strings attached. Much of the transportation infrastructure funds are channelled through a regional agency to keep everyone on schedule and honest.

[Jobu]

If I were in charge, nobody would get bailout money until they've shown they will balance their own books and the ceo/mayor/governor of whatever entity is asking for the taxpayers' money would have to resign.

Otherwise we're throwing taxpayers' money into a sinkhole.

[Ordie]

If I were in charge, nobody would get bailout money until they've shown they will balance their own books and the ceo/mayor/governor of whatever entity is asking for the taxpayers' money would have to resign.

Otherwise we're throwing taxpayers' money into a sinkhole.

Unlike the Federal Government, the majority of States and municipalities are mandated to have a balanced budget. Unlike the bailout private banks and securities, municipalities are required to have public meetings.

Moreover, public works projects are subject to publc hearings and oversight through the environmental review process.

Therefore transparency, fiscal, and project management are less of an issue with the public sector. Many of these projects have already been approved but are suspended due to the lack of revenues.

If the Feds were to direct funds to the municipalities, RFP's can be released within weeks if not days. Local contractors and suppliers (heavy machinery, tools, mechanics) would have a guaranteed source of income to keep people working which in turn generate revenues within the local communities.

Having a balanced budget is only 1/2 of the solution. What is lacking at the local level are consistant tax and bond revenues to fund the budget. For example, the less people spend on goods and services, the less sales tax revenues for the local coffers.

[Jobu]

Unlike the Federal Government, the majority of States and municipalities are mandated to have a balanced budget.



Which is obviously why so many are begging for federal bailouts. lol

[Ordie]

Which is obviously why so many are begging for federal bailouts. lol


At least Clinton had a budget surplus.

But thanks Bush & company we had 8 years of deficit spending in a deregularized environment.

[Laworkerbee]

At least Clinton had a budget surplus.

No doubt helped along by a Republican controlled congress my friend.

[brainplay]

I thought we already pointed out that the surplus was smoke, mirrors, and a soundbyte.

[Ordie]

I thought we already pointed out that the surplus was smoke, mirrors, and a soundbyte.

The annual budget was surplus.
However, we still had a debt carried over from eons.

[BugHunt]

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.

The average age of the world's great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage."-- Alexander Tyler




Those who cannot learn from history are doomed to repeat it.
--George Santayana




What experience and history teach is this -- that people and governments never have learned anything from history, or acted on principles.

-- Geroge Wilhelm Hegel

[Eventine]

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.

The average age of the world's great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage."The truth about Tyler: http://lorencollins.net/tytler.html

[philbob]

No doubt helped along by a Republican controlled congress my friend.

IF you have a surplus taxes are too high

a little food for thought

[deagle]

when the govt bails out these cities, who'll bail out the govt ??

[Laworkerbee]

when the govt bails out these cities, who'll bail out the govt ??

That would be China.

[Jobu]

The annual budget was surplus.
However, we still had a debt carried over from eons.



Sorry, that's just flat wrong.

I posted a link to the Treasury Dept's numbers a few weeks ago. There was never a surplus. There was only a "projected" surplus which did not take the dotcom collapse, mini-recession in 2001, and 9/11 into account since they were not predicted.

Clinton ran defecits for each of his 8 years.

[xav]

Palm Bay FL to buy, fix 45 homes

With 10 percent of all houses there in foreclosure proceedings, Palm Bay will undertake a mini-rescue of distressed properties, using $5.2 million in federal grants.

Where will the money go?

A plan now up for public comment identifies ZIP code 32907 (northwest Palm Bay) as the area with the highest concentration of subprime mortgages and 43 percent of Palm Bay's foreclosed homes.

But city staff recommends that the council vote Thursday to target eight neighborhoods: David, Driskell Heights, Fairview, Hiawatha, Richards-Magnolia, Southover-Shire, Tillman and Port Malabar Unit 1 (the original General Development Corp. site).

"If we were to do one house on one block, and then another on another block, we would not make a big dent," City Manager Lee Feldman said.

Initially, the city plans to buy and rehabilitate 35 foreclosed homes, while buying, tearing down and rebuilding 10 more, the plan says.

Rules say the city must purchase homes from banks at 15 percent less than appraised value.

The city then would sell properties to people who plan to live in the homes and roll over any profit to buy more foreclosed homes, Feldman said. Any money left over after five years returns to the federal government.

Brevard County government, meanwhile, received $5.27 million for similar foreclosure-rescue measures in unincorporated areas.

You can view Palm Bay's and the county's plans online at floridatoday.com.

Senator's suit

Six years ago, Robert and Suzanne Estes contracted with Thad Altman to supervise construction of a 900-square-foot addition to their Suntree home. The project was estimated to cost $74,000, and the Esteses paid all bills received.

But Altman put off the job to run for the Florida Legislature when the District 30 seat opened in 2003. He won, and packed off to Tallahassee. Estes had to hire someone else to finish the job.

Estes complained to FLORIDA TODAY, and Altman sued for breach of contract, claiming Estes still owed him more than $15,000 for expenses.

Estes countersued.

This summer, after four years of inaction, a lawyer for the Esteses filed a motion for Altman to answer questions. Altman filed for an extension of time.

"We've had this hanging over us all these years," Robert Estes told Watchdog reporter Jeff Schweers. "It's stressful."

Altman, now a senator, and his lawyer, Clifton McClelland, did not return several phone calls seeking comment.

Smart feedback

Sunday, I called for keeping Bright Futures scholarships, and tried to dispel rumors among anxious parents that the state will end them.

Tracy Dash, a student and editor at the Satellite High Telstar, thought I underplayed how hard students must work to qualify.

"Yes, they have to have at least a B-plus average (or, better put, a 3.5 GPA)," Dash wrote in an e-mail. "But they're required to complete 75 hours of community service and reach a 1270 on the SAT or 28 on the ACT. . . . A 1270 is most certainly not an easy score to reach. Furthermore, in no way are these requirements met by 'hardworking parents.' Oh, no. The four years of sleep-deprived, social-deprived and fun-deprived hell I went through to get this award and get into a solid Florida college are in no way credited to my 'parents.' They were all me."

[Creeper]

"The future prosperity of this country is tied directly to our ability to provide basic services and quality infrastructure to our citizens," Atlanta Mayor Shirley Franklin wrote in a letter to Rep. Charles Rangel, D-N.Y., the chairman of the House Ways and Means Committee. "We are at serious risk in failing in that most basic public responsibility."

That is a complete B.S. statement from Franklin. For the past 2 administrations, she has "attempted" to "fix" her sewers. Is the water system in need of repair ? No. Can the water system use improvement? Yes.

Franklin could not gain the local financial support for her pet project, now she is wants a piece of the bail out pie.

Atlanta is not hurting. I see it everyday and its just fine.

Franklin failed.