Big Cities Seeking Bailout Money Too

Philadelphia, Atlanta, Phoenix Mayors Say They Need A Share Of The $700 Billion

(CBS/AP)  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, chairman of the House Ways and Means Committee. "We are at serious risk in failing in that most basic public responsibility."

President-elect Barack Obama has also 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.

In Atlanta, an expected budget shortfall of $50 million to $60 million means that 4,600 city employees will have their weekly hours and pay cut by 10 percent. The city has also adopted a hiring freeze for most agencies and dipped into its reserves for $12 million.

And those were not the first budget cuts. Earlier this year, Atlanta laid off 372 employees, eliminated about 900 jobs and raised some fees.

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.

"The focus ... is to stabilize financial institutions and strengthen the financial system, promote lending and so on," Paulson said.

But lawmakers say Treasury has already changed its policies about how the bailout funds can be applied, and blasted Treasury officials in a hearing Friday, saying they were disingenous about their plans when the package was passed last month.

And Democratic leaders in Congress are seeking to shift $25 billion of the rescue money to the struggling big three automakers.

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 told reporters 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.'"

Other cities such as Dallas and Wilmington, Del., hope to obtain help from a separate assistance package being promoted by the U.S. Conference of Mayors. Congressional leaders plan to push for a second round of economic-stimulus measures in a lame-duck session next week.

In Lexington, Ky., officials would like $125 million to hire more police and make improvements to a wastewater treatment plant, the airport and the city's downtown.

"These aren't luxury items," Mayor Jim Newberry said. "These requests represent pent-up needs for the basics."

In San Jose, Calif., Mayor Chuck Reed initially said Friday that he planned to request his city's "fair share" of the bailout package - 2 percent, or $14 billion - to pay for mass transit improvements and expansion of the area's clean-technology businesses. He reversed course later in the day, saying he wouldn't request the bailout money at this point.

In Philadelphia, the city pension system lost more than $650 million in the first nine months of the year.

Last week, Nutter announced the city would lay off municipal employees, cut salaries, close most of its swimming pools and shut nearly a dozen library branches to cope with a $108 million shortfall this year caused by declining business and real estate tax revenue. The deficit could grow to $1 billion over five years, he said.

Phoenix's budget deficit is at least $200 million and could reach $250 million by June if tax revenues keep sliding. That figure represents up to 22 percent of the city's $1.2 billion general fund, which pays for most city services.

City officials say the cuts will affect every department. Phoenix will probably reduce hours at libraries, community centers and public pools and cut bus routes, among dozens of other actions.

If the government agrees to help, Phoenix could use the money to build new police and fire stations, water-treatment plants and extensions to a new light rail network.

"We're going to have to do this in order to keep our city growing and healthy and safe," Mayor Phil Gordon said.

[rwsmith29456]

Hey! I want a bailout, too!

[rebelscout]

They only bailout the rich!!!

[lucy-in-tx]

Why don''t you fix your own damned problems by ending corruption and graft in your cities instead of continuously feeding at the federal trough like a bunch of hogs.

[hitoyou1]

NO. Ciyt are spending money on thinks that NO ONE NEEDS, and they want money. To HEEEEELLLLLLLLLLLLLLL wth them and anyone else that wants money. Let them drop dead. Look at NY, CA, and others. No Money.

[bhappy2-2]

I''ve said it before and I''ll say it again: If the government really wants to help the economy they would give the 700 billion to the citizens. We would pay off our mortgages, invest in new vehicles, possibly start our own businesses and thereby help the banks, the automobile manufacturers, the local stores, the local workforce and, most of all, the U.S. economy. But, if they did that, their buddies wouldn''t be able to waste 700 billion on themselves while continuing to foreclose on all these houses, etc. This whole bailout is one big fiasco. No one benefits from it except the banks, their incompetent managers and the government. The citizens are, once again, screwed.

[reelamerican]

The Big 3 automakers are near insolvency from the crushing debt to fund the union benefits package. The unions in Philly are second to none when it comes to their influence and affectation of policy.

Jeopardy held a tournament a few years ago in Philly at the new PA Convention Center and there were front page articles in the Inquirer relating to the in-fighting and work stoppages that erupted over who was going to get a piece of the Jeopardy money action. Several sources associated with Jeopardy were quoted as saying that they would never return to Philly again because of union influence and the astronomical costs associated with it.

You cannot blame a particular group for looking out for their own livelihoods....however, there needs to be some sanity in the "big picture" and so far there hasn''t been any. City mayors and council are elected through the support of unions and with the promise of supporting the unions in return, so there is no stopping that rolling stone. Jobs are leaving our country in droves and cities and other municipalities are bleeding from the union hemmorage. Yes, corruption and waste make up a portion of all tax dollar expenditures, but even if the ludicrous happened and you were able to clean the waste up, the commitments to unions for current and future benefits will only get worse. No amount of chest beating and the decrying of critics will change this "law of diminishing returns" formula. (putting soap box back now).

[michael1757]

In the state''s,as well as citie''s,whatever happened to United We Stand,Divided We Fall?

[michael1757]

In the state''s,as well as cities,what ever happened to "United we stand,Divided we fall"?

[generey]

LOL! And the can of worms is now open! Let the games begin!

[mcdonaj3]

And who is paying for this? Is money falling from the sky? Who is bailing out my 401K? From bloated pension plans to social security and medicare, virtually every level of government has made "promises" that can''t be kept. Excessive use of credit has caused the problem and our solution is borrow more. I fear for this country.

[tbuckl]

Perhaps the Government would think different if all the home owners who are loosing their homes were to blockage thier houses and take a stand, Use any and all force nessary to hold law enforcement off. One or two homeowners would not make a difference, but if 1 mil home owners put up a resistance then the police force would not have the man power to remove us all. If we band together, the Government will have to deal with us. Stand alone and they will take us one by one just like Nazi did. If it is the banks policy to rip us off, make us homeless while enjoying the bailout money for vacations, then take our homes and sale them for less than what we owe, it should be the policy of the citizens to repeal any and all government official attempt to effect this national swindle upon us. Again Thomas Jefferson saw that these tyrants would continue to rise up and we would need to forced them back down in order to maintain our liberty.

[tbuckl]

continue.. He said, "I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." The Preamble to his original draft of the Declaration of Independence, he wrote, "We hold these truths to be sacred & undeniable; that all men are created equal & independent, that from that equal creation they derive rights inherent & inalienable, among which are the preservation of life, & liberty, & the pursuit of happiness; that to secure these ends, governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government shall become destructive of these ends, it is the right of the people to alter or to abolish it, & to institute new government, laying its foundation on such principles & organizing its powers in such form, as to them shall seem most likely to effect their safety & happiness."

[tbuckl]

continue so more...Hasn''t this government and the banking system proven to be destructive? Do the people now have a right to alter or abolish it and institute a new government? Thomas thought that "Rebellion to tyrants is Obedience to God." He further said, "The tree of liberty must be refreshed from time to time with the blood of patriots & tyrants." Perhaps we have reached that point where it is time to refresh the tree of liberty and deal with these tyrants now destorying American. Now that I have said my thoughts about this swindle, showed myself as a Son Of Liberty should I stand out front of my home and wait for the black van to pull up and take me to Guantanamo Bay?

[tbuckl]

Sorry it was greater that 1500 words so I had to break it up into 3 posting.

[albo58]

Absolutely NO to bailouts for these cities! They made their plight by over-spending. And in regards to the cities that provide safe haves for illegals, then you may want to follow federal law and turn these folks over to ICE because not only are they a big liability on your current funding, they are also breaking the law! Lastly, if you want a welfare city, then YOU must pay for it!

[niceface19]

This nation is crazy, every thing needs bail out, women need silicon boobs bail out, men need Viagra bail out, priests need child molesters bail out............every this is faked in the US.

[armandbeni]

Let Opra bail out the cities, she had enough money to fix the election, she should have enough money to bail out the cities.

[tomtoth]

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is it%u2019s natural manure. Thomas Jefferson (1743%u20131826)

[dewbug2]

So, after the fat cat mayors and their lackeys stuff their pockets,and the supposedly urgent improvements are not done, and the money is all gone, THEN WHAT?..............back to the pig trough again??? For another handout,provided by those who have been stolen from,to fail to work again???? and again???...

I''ve never in my 70 years (nor has anyone else in a COUPLE THOUSAND YEARS) seen a program like this work, because they DO NOT work ....Socialism (THE NAME FOR PROGRAMS LIKE THIS) never HAS worked, the only thing it accomplishes is to pave the way for even more government meddling and interfering, and in more control over private lives.
Boy, our new dictator (***-tator?)is really gonna have his little Red hands full, what with sending us down the tubes to pure socialism,and all the while pissin'' off our friends like Israel...well, folks, the jury box has failed us, the ballot box just failed us, all we have now is the cartridge box....better get ready, my friends.

[tbuckl]

2008 Preamble to Declaration of Independence
We the rich hold these truths to be undeniable; that all rich people are created above all others & that from our superiority is created by our God, that we derive our rights inherent & inalienable, above anyone else, we decide what the preservation of life, & liberty, & the pursuit of happiness is; that to secure our position to these ends, our token government is instituted by the rich, deriving their just powers because they have the armies and from the consent of the rich; that whenever any person shall become destructive of our rules, it is the right of the rich to destroy, alter or to abolish any rule, law that interfere with the rule of the rich, & to institute new definitions at will and without notice , laying ours foundation on the backs of the not rich. We shall organize our powers in such a form, as to keep all non-rich at bay and shall protect our safety & happiness by force should the poor rise up due to the heavy yoke around their necks.

[slim1h2o]

Well it''s clear to me that "they" (the rich) are trying to knock the middle class off. But just remember this......

YOU CAN NOT HAVE A VIABLE COUNTRY WITHOUT A ROBUST, HEALTHY, WELL TAKEN CARE OF MIDDLE CLASS.

That''s just a reminder for Washington D.C.

To our leaders,,you had better fix the Health Care System (I''m laughing as I say that, what a joke) that should be the 1st thing you do. Next, any so called American Company that does not manufacture here, they''re done, close them up. I''m talking about the ones that outsourced. I don''t care who they are.
Next, the car companies, let them fail. They have known for 30 yrs that they were not keeping up with the rest of the worlds manufactures. The middle class that built this country are tired of seeing our money being waisted like we are going to see, all in the name of keeping the country afloat. But we are the ones that will surly suffer the follies of the rich corporations and Bushits government.

To the rest of the world,,,,,Sorry that we, the middle class, has let you down.

But, we will be back! Back stronger, and hopefully better next time.

[slim1h2o]

I forgot to address the article..

To any city, state, county ,,,why should the American Taxpayer help you out?
How many homeless do you have sleeping outside in the dead of winter? In the heat of the summer? How much have you helped them out? How many restrictions have you placed on them, before you help them?

As far as I''m concerned, you are paying for past sins of paying yourselves to much money. And not doing the right thing, by providing for less fortunate in your communities, states.

Again,,to the Feds,,,don''t give these greedy bas-turds nothing. All they have done is hire their brothers, brother-in-laws, cousins,,etc etc.

Thats all I have to say at this point.....Except,,


The powers of this country has brought us down. It''s entirely on your shoulders...

And they are not broad enough to carry the load.

[jsd330]

Talk about the auto workers benefits, check out the city workers.They are far better, and they don''t work as hard. Streets full of snow, the snowplows are all at the coffee shop. City hall administration always to busy gossiping to take care of you in a timely fashion, building inspectors always late you have to wait on them (but if you aren''t there within 5 minutes of inspection time they leave).I have no pity on city government workers they could care less about you, and it''s not the unions it''s the civil service commission. We had an EMT who was stealing credit cards from patients and was cought red handed. Did she get fired? No she didn''t even get time off. A slap on the wrist and pay back the money, no court case no jail time. Why because she was a civil service employee. So you want to complain about the auto workers, on the hour they may make more then city workers, but they do have to work a full shift, no 2 hour lunchs and hour coffee breaks. You think they build junk? they can only build what mangement lets them. As for thier pensions I have seen a lot better and a portion of the pension comes out of their hourly rate.Don''t forget that Japanese car companies are subsidized by their government.As for the foriegn auto plants here lower pay, little or no benefits, No pension plan, no job security(call in sick and you are fired).

[eburnsed-2009]

HMMMMMMMMMMMMMMMMMMMMMMMMMMMM, lets see what does these three wonderful cities have in common? Let me think!Oh yea all three are ran by DIMWITTED IGNORANT DEMOCRATS. I lived in Atlanta for over nine years I know how this city is ran; I had an employee at the Fulton County Courthouse that told me EXACTLY what Mayor Franklin is capable of doing(I''m not going to say here), and she was an African American by the way.When you people in these three cities vote again why not try something different vote for a "TRUE CONSERVATIVE" who can get these cities back on financially sound ground. Governor Bobby jindal isn''t asking for a bailout, because they just cut taxes six times this year in that wonderful state that was ran by FRIGGIN DEMOCRATS for over thirty years. By the way why would Mayor Franklin need a BAILOUT when she just gave most of city employees this year a raise. HMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM, YOU FRIGGIN CROOK YEA YOU MAYOR FRANKLIN. ALL THREE OF YOU MAYORS NEEDS TO STEP DOWN ,BECAUSE YOU ARE NOTHING ,BUT A FRIGGIN JOKE.