States,Citys cuts for the poor are usually first,taxes come to further destroy citizens within the countys.Yes this will get ugly

PHILADELPHIA — Philadelphia, Phoenix and Atlanta will seek at least $50 billion in emergency financing on Friday from the federal Treasury to help with infrastructure renewal, pension costs and short-term borrowing, which have all been curtailed by the credit crisis.

The cities are calling on Treasury Secretary Henry M. Paulson Jr. to release the money from the $700 billion Troubled Asset Relief Program authorized by Congress to bail out banks and financial institutions.

About a half-dozen other cities, including Chicago, are reviewing the plan and may sign on, said a spokesman for Mayor Michael Nutter of Philadelphia, who is leading the initiative. On Friday, Mr. Nutter will personally give Mr. Paulson a letter outlining the proposal.

In the past three weeks, Philadelphia, New York and other cities have announced cuts to services as revenues hit by the economic slowdown create budget deficits. Philadelphia will lay off about 220 city employees, and shut libraries and swimming pools to close a $108 million gap in its current $4 billion budget.

“We who run some of America’s larger cities are dealing with the economic damage wrought by the credit and housing crises,” the letter says. “The economic contraction precipitated by these twin crises is forcing us, and mayors all over the country, to dramatically reduce programs and services for millions of residents we serve.”

The cities will ask Mr. Paulson to set up a $50 billion fund to rebuild infrastructure. Half the fund would be a grant, while the remainder would take the form of loans to cities at an interest rate of 50 basis points above that of 30-year Treasury bonds.

The cities are also seeking loans of an unspecified amount to cover some pension liabilities so they can fully finance their pension systems, the letter says.

It cites the example of Philadelphia, whose pension fund lost more than $650 million in value in the first nine months of 2008 because of plunging stock markets, and which faces $300 million in increased pension costs from the fiscal years 2010 to 2013.

The credit crisis has “all but eliminated” the ability of cities to borrow in the private capital markets to meet their pension obligations, the letter says.

It also calls on the Treasury to provide unspecified one-year loans to cities to allow them to meet cash-flow needs resulting from an inability to borrow.

http://www.nytimes.com/2008/11/14/us/14philly.html?_r=2&ref=us&oref=slogin&oref=slogin