Newspaper Page Text
PAGE 6, OCTOBER 6, 2008, THE ISLANDER
Bailout
Continued from Page 1
Treasury Department to spend up to
$700 billion in a Troubled Asset Relief
Program to purchase “toxic” mortgage-
backed securities. It also gives the Trea
sury Secretary the option to create an
insurance program for the securities in
which participating companies would
be required to pay premiums. Partici
pating firms would be subjected to exec
utive pay restrictions, limits on “golden
parachutes” for departing executives,
and would allow the government to
take equity stake in their company.
Changes to the bailout, added by the
Senate which passed the measure over
whelmingly on Wednesday evening,
included a provision allowing banks
that held Fannie Mae and Freddie Mac
to count any losses as ordinary losses
against their income.
The Senate also added tax provi
sions that extended breaks for produc
ers of renewable energy, an Alternative
Minimum Tax patch that prevents 22
million taxpayers from paying a tax
originally meant for the wealthy and
optional deduction for state sales taxes.
The package also included tax ear
marks that for such things as rum pro
duction in Puerto Rico and the Virgin
Islands, wooden arrows for children,
and NASCAR racetracks.
Public outcry against the bailout was
unprecedented. Calls from constituents
strained the Capitol’s phone systems
and caused crashes of several websites
as well as email services.
In an effort to better educate his
constituents about the issue, Congress
man Kingston created a website locate
at http://kingston.house.gov/bailout to
provide timely information.
Meant to serve as a clearinghouse,
the website contains bill text, summa
ries, and analysis as well as opinion
pieces, press coverage, and multime
dia.
The President must now sign the bill
into law before it is enacted. “I
SPLOST on ice
Continued from Page 1
(Dist. 1) will be replaced in 2009. Com
missioner Jerome Clark (Dist. 5) is
being challenged by Republican Kath
ryn Kasper in next month’s General
Election.
The problem caused by the city's
decision to postpone the I St. abandon
ment, according to Commissioner Tony
Thaw (Dist. 3), who chairs the finance
committee, is that if the city does not
abandon the two streets to the county
then the jail expansion will have to be
redesigned.
And if it has to be redesigned, the
design cost will increase. The construc
tion could also increase.
Since the jail project cost could
potentially increase, Thaw says this
means the County-Wide project may
not be completely funded, hence State
SPLOST law does not allow them to
spend money on other SPLOST proj
ects.
Therefore the commission should
freeze the distribution of the tax funds
pending the outcome of the jail issue in
January.
“I’m not going to break the law,” said
Thaw.
Fendig disagreed with Thaw say
ing the county was not in violation of
SPLOST law.
Fendig said, “The SPLOST 5 referen
dum included a total of $12 million for
the three County-Wide projects. Based
on the SPLOST income, those projects
are funded as we budgeted them in the
referendum. I hear what you are saying
and although we expect the jail cost to
change, the budget is $12 million and
the truth is that at this point we have
collected enough money to fund these
projects.”
Fendig recommended not enacting
the freeze and holding a publicly tele
vised, open work session with the com
missioners who will take office next
year to discuss the issue.
Explaining the difference between
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SPLOST 5 and previous SPLOST's,
attorney Mumford pointed out that
in the past the county has split the
SPLOST money with the city based on
an intergovernmental agreement.
‘We have no such agreement for
this SPLOST,” explained Mumford, “In
addition we’re taking into account not
just the budgeted amount for the Coun
ty-Wide projects, but the actual cost.”
Fendig pointed out that the county
commission changed the original design
of the Pate building renovation causing
a budget increase, but no one suggested
a SPLOST freeze when that change
occurred.
“Commissioner Thaw is now con
cerned that we are in violation of the
law,” said Fendig, “but we are not in
violation.”
Saying he was going to take Mum-
ford’s advice, Thaw responded saying,
With all due respect Commissioner
Fendig you don’t have a law degree
hanging on your wall and our attorney
Mr. Mumford does. Right now we do
not know if we are going to get I St.
and the alley, we are not clear on the
final costs or if we have them covered.
I’m not an attorney, but I’m listening to
ours and I’m not breaking the law.”
Mumford never said the county was
actually in violation of SPLOST law,
but he did stress that the law mandated
the County-Wide projects be funded
first.
“If the projects require additional
funds, based on circumstances beyond
your control,” said Mumford, “it means
you step back and determine if the funds
you have set aside are sufficient.”
Commissioner Keller was also not
convinced there was a problem.
Pointing out that the county has
about $27 million in SPLOST funds the
bank, Keller agreed with Fendig that
the County-Wide projects are funded
and there was no need to freeze distri
bution of the tax money.
County Administrator Charles Stew
art said that with the current condition
of the economy, there is some uncer
tainty with SPLOST revenue collec
tions.
Stewart told the commission that
the most recent SPLOST receipts were
down by $292,000 from the same month
last year.
Based on the uncertainty of the CDC
project next year and the SPLOST rev
enue down turn, Stewart said, “In my
opinion, to go forward without a more
conservative plan is not a good idea.
If we try to make adjustments later, it
could become problematic.”
Stewart it would be prudent to
approve the freeze and see what hap
pens with the jail and street aban-
Turn to Page 7
SPLOST on ice
JL
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