Stimulus Projects in Flint

A recent comment about stimulus projects in Flint got me wondering just how much Federal money flowed into the city in an effort to boost the economy. According to Stimulus Watch, the total is more than $28 million for everything from new carpets in the Job Corps office to Head Start funding. Go here to see the list of projects.

Buick City Beautification

Will taxpayers pay to clean up Buick City?

Ron Fonger of The Flint Journal reports:

Taxpayers already paid for most of the "new" General Motors, and there's increasing pressure on the government to dig a little deeper to do something more: Guarantee to cover the cost of future environmental cleanups at old plant sites like Buick City.

The Genesee Regional Chamber of Commerce has scheduled an Aug. 26 meeting on the subject here, saying it wants to start a national discussion about how a government promise to take over long-term environmental liability could make the difference between investors buying abandoned properties left with "old" GM or leaving them to sit as they are.

Of course, there is another option:

Russ Harding, a senior environmental policy analyst for the Mackinac Center for Public Policy, said GM should have been required to re-assume its environmental responsibility for the sites it is leaving behind if it ever regains profitability.

"It's fundamentally unfair for taxpayers to be stuck with that bill," said Harding, a former director of the state Department of Environmental Quality. "I look at this as a lose-lose situation."

More Cash for Clunkers

The "cash for clunkers" program appears to be extremely popular. The LA Times reports:

"With surprising swiftness, the government's "cash for clunkers" program has burned through its $1-billion budget in less than a week as car buyers swarmed dealerships, and federal officials were scrambling late Thursday night to find more money to keep it going."

But the White House vows the popular program will continue. The NY Times reports:

"Robert Gibbs, a White House spokesman, said the administration was looking for ways to continue the popular new program, which offers $3,500 to $4,500 for people who trade in an old car for a new one with higher fuel economy."

Dave McDonald, who sells cars in Flint, has some real-world insight into the program.

This is generating a lot of excitement and moving some iron. So if the customer qualifies they get the $4500 credit, GM rebates, and in most cases a GM discount.

Here are some of the highlights or benefits as I see them.

1. A new car is sold

a. GM gets one sold

b. the dealer gets one sold

c. the salesperson makes money

d. if financed the financial institution makes money

e. the state makes money on sales tax

f. the state makes money on state fees

g. the gas station makes money because new ones get a full tank

h. the oil company makes money and its logistical team makes money

2. A clunker is taken in

a. the dealer makes $50 for disabling the engine ( supplies cost $30 )

b. the junk yard is paid by government to destroy motor/transmission

c. the junk yard parts out remaining parts

d. the junk yard sells the scrap metal

3. A clunker off the road

a. better emissions

b. better gas mileage

c. insurance company makes more money (naturally) now insuring newer vehicle

d. safer vehicle (less medical expenses in case of accident)

Someone needs to share some of this with the lawmakers who feel that GM, Ford, and Chrysler are not far reaching into the economy of the US. We haven't even taken a look at all the suppliers who sell parts, cleaners, solvents, etc. that make all of the above work.

Probably the one industry benefiting the most is the paper industry — the gov't LOVES paperwork. But a few trees are probably worth what this program is producing.

Shrinking Flint: Federal Money to Get Smaller

We've been wondering where the federal money is to tear down abandoned houses in Flint. Well, it's on the way.

Cathy Shafran at WJRT ABC 12 reports:

"The city and the county both learned this week they'll each be getting about $1.2 million in federal stimulus money for demolition.

That $2.4 million will take care of about 300 of the 5,000 abandoned homes in the community.

That money, combined with another potential $15 million that the county has applied for, has the head of the land bank pushing harder than ever for the community to come up with a master plan on how to spend it.

"As the federal money comes in, we need to make sure we're making the best use of that money and not just throwing it at the wall and tearing down houses here and there or creating community gardens where it makes sense at the moment," said the Genesee County Land Bank's Dan Kildee.

Before you get too exited, let's work out the numbers. If it costs about $8,000 to tear down a house, and the city and county get $17.4 million, that works out to about 2,175 houses disappearing if all the money goes to demolition. So even in a best-case scenario — if that's the right term for this process — that still leaves 2,825 vacant houses in Flint. But that's better than 5,000, right?

The two candidates for mayor — Brenda Clack and Dayne Walling — differ on the issue of shrinking Flint, although both acknowledge city will be getting smaller.

Thanks to J.L. for passing this news along.