Seeking a Federal Bailout as City Jobs Dry Up

Democrats in congress are trying to divert some federal bailout money to cities and counties, where job losses are crippling municipal services.

"Even though the economy is showing signs of recovery, these remain tough times for cities and counties, and it's likely to get tougher. So local governments want what Wall Street and carmakers got: federal money.

Concerned that a wave of municipal layoffs could set back the nation's economic recovery, congressional Democrats are pushing a $100-billion bill that would provide $75 billion in federal aid to help cities and counties preserve jobs.

The bill, which has gained 151 cosponsors in the House, also provides an additional $23 billion to help preserve teachers' jobs. Most of the remainder would go to aid police and fire departments."

The bill's sponsors say that city employment levels are at their lowest since 1980, and the slow turnaround of the economy will continue to dry resources and city budgets. However, some Republicans are skeptical of the bill.

Full Story: Cities feeling the pinch


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