Whole Foods Market is getting into the small-lending business. Image: Flickr / forever5yearsold / CC-BY-ND

For small food producers, finding financing can be tough. Small farms often have high costs and low profit margins, which makes getting loans difficult at best. Some private businesses, however, are getting into the farm-loan business.

Whole Foods Market offering $4 million

In 2007, Whole Foods Market started the Local Producer Loan Program. This program provides small loans to small food producers. The loans range from $1,000 to $100,000 and have interest rates of 5 percent to 9 percent. These bad credit personal loans, not payday loans, are intended to help local food producers expand capacity or improve production. In the past, these loans have been used to convert farms to organic production or increase availability of their products; at least partially to be sold at Whole Foods Market.

Microlending clubs targeting local food

Microfinancing and microlending are usually buzzwords used while talking about financing growth in developing nations. In some areas of the country, new microlending clubs are targeting local-food producers, offering loans of less than $100,000 and working with farmers to create repayment terms that the farmers can easily handle. For some farmers, this means quick no credit check payday loans financed by small groups of people that believe in what the farmers are offering. For others, it means extended loan obligations. Every lending club is different, and most are goal-driven.

The challenges of funding small farms

Small farms, organic food, farmers’ markets and slow food are gaining popularity, but financing them is still a gamble. Seasonal crops that are sensitive to weather changes combined with small markets makes it a tough industry. Add to this the fact that many new FDA regulations require increased testing and production methods that are simply more expensive, and many small farms are looking for ways to pay for this increased testing. In general, farms receive about 10 cents from every food dollar spent– and more than half of people making their livings off farming have less than $100,000 a year in gross sales. This means that, on average, a small farm can count on $10,000 a year or less of income. In short, small farms face a tough time when it comes to balancing the books — and every food dollar the American public spends adds up to a vote for the kind of food producers who survive.

Sources

PR Newswire
Portland Press Herald
Business Week
“Small Farm Today”

Reno's short-term loan from the state is going to go unpaid, with no consequences. Image: Flickr / MoneyBlogNewz / CC-BY

The city of Reno, Nevada, has found itself in a tough position. The city mishandled short-term loans that were supposed to be paid back in one year. The city’s failure to understand the terms, however, means these loans will be stretched out over 10 years.

Reno’s short-term loans

The state of Nevada provided more than $8 million in short-term loans to the city of Reno, Nev. These loans were intended to be used to support the streets department, sewer department and the city’s general fund. The state expected to have the money paid back within a year. When that year came to an end, however, the city didn’t have the money to repay the state and didn’t even know that it had to be paid back. City officials are calling this an “incorrect interpretation of current law.”

Loans being re-written

In order to handle the $8 million debt to the state of Nevada, Reno officials are trying to get the loans re-written. The debt is being stretched from a one-year obligation to a 10-year obligation. The city will be required to pay more interest on the money, and the state will hold the loans over time. In the short term, this is another $8 million worth of money the state will have to cut out of its yearly budget.

No investigation into funding mismanagement

Though the city of Reno misread the rules regarding this loan, there will be no investigation. Nevada Taxation Director Dino DiCianno has said that this mishandling is a “technical violation of state laws.” Though it is a legal violation, the state will not be investigating the city officials. Instead, the state is going to review and approve the re-writing of the loans into a 10-year debt. The state is responsible for reviewing each city’s budget, so the responsibility for missing the loan payments is shared. Who, exactly, shares the responsibility for “misinterpreting” the state law will not be investigated.

Source

RGJ

Two parents in Philadelphia have been arrested for stuffing their boys' backpacks with marijuana. Image: Flickr / jauhari / CC-BY-ND

Police have arrested two parents in incidents involving marijuana. Police say two kids were used as drug mules in Philly. Three additional people have been arrested in conjunction with this incident.

2 kids used as drug mules in Philly

Early Tuesday morning, police made a routine traffic stop in Philadelphia. Rodney Saunders was found to have a “very significant” amount of marijuana in his vehicle and was arrested. When Saunders’ wife, Senya, was informed of the arrest, she decided that the two kids in the house should be used to “hide” the marijuana in the home. She packed the school backpacks of the 10-year-old and 9-year-old with seven total pounds of marijuana and sent them out of the house. Police intercepted the kids, the mother and three others in the home.

9- and 10-year-old drug mules

A “drug mule” is usually an individual who transports drugs for another person. The term “drug mule” is most often applied to people who transport hard drugs, such as heroin, across state or international borders. These 9- and 10-year-old drug mules in Philly reportedly had no idea what was in their backpacks, only that their mother gave them the backpacks and told them to go out of the house. Generally, possessing more than 1 ounce of marijuana is a felony crime. Pennsylvania does not have a medical marijuana law, but no medical marijuana law would justify the parents that used two kids as drug mules.

Parents held on bail

In the initial hearing for the parents arrested for marijuana crimes, the judge set $150,000 bail. Should the parents be convicted of possession with intent to distribute, one of the multiple crimes they are charged with, they could face several years in jail. The children have already been taken into custody by Child Protective Services. However, their parents could qualify to get their children back if the courts determine the children are no longer at risk in the home.

Sources

My Fox Philly
Philly.com

Lucy Lou is a red and white border collie, in addition to being mayor of Rabbit Hash. Image: Flickr / maruricekoop / CC-BY-ND

Politics is often called a dog-eat-dog enterprise. A dog, Lucy Lou, is mayor in an unincorporated hamlet of Kentucky. The election was between 15 animals and one human, and there was more than 200 percent voter turnout.

Border Collie dog, Lucy Lou, as mayor

Lucy Lou has been mayor of Rabbit Hash, Ky., since 2008. The red and white border collie has done more than her fair share in bringing attention and notoriety to the small, unincorporated town. Her responsibilities include greeting town visitors and being the “face” of Rabbit Hash. Lucy Lou is also the face of Elk Creek Vineyards, one of the seven buildings in the town.

Buying votes to make Lucy Lou the mayor

Lucy Lou, mayor of Rabbit Hash, did not come to her position without some controversy. The election where she was elected had many irregularities that the Federal Elections Commission would look down on. Votes were sold at the rate of $1 per vote, and voter turnout was more than 200 percent. There were 16 candidates in the 2008 election for mayor of Rabbit Hash, including several cats and other dogs. The money from the mayoral election was spent on restoring the local church. While Rabbit Hash is an unincorporated area that does not have a budget, a city council or a government, its citizens often band together to pay for projects in the area.

Lucy Lou breaks mayoral glass ceiling

Though Rabbit Hash, Ky., has had mayoral elections since 1998, there have only been three elected mayors. All three mayors have been canine, despite cats, gerbils and even donkeys running for the position. In 2008, when Lucy Lou was elected mayor, she was the first female mayor of the town. Lucy Lou was also highlighted by “Readers Digest” in its profile of the city. Lucy Lou’s biggest responsibility as dog mayor of Rabbit Hash, however, is public appearances — most often at the animal shelter.

Sources

AOL News
Rabbit Hash website

Natural gas is often used for cooking and heating homes -- but it also caused the Allentown, PA, explosion Wednesday night. Image: Flickr / stevendepolo / CC-BY

At least one person is dead and another five missing in Allentown, Penn. A natural gas explosion rocked a neighborhood at 10:45 p.m. local time Wednesday, Feb. 9. At least one full row of six houses was destroyed, and another 16 homes were badly damaged.

Allentown, Penn., natural gas explosion

The causes for the natural gas explosion in Allentown are not yet known. The Allentown fire chief said that the causes are “under investigation.” For an explosion of this size, natural gas in heavy concentration would have had to be sparked, which could happen if a gas stove were left on or a natural gas leak were undiscovered for a long period of time. The blast was powerful enough that computer monitors were sent sailing six to eight houses away.

More than 600 evacuated after natural gas explosion

After the Allentown, Pennsylvania, natural gas explosion, more than 600 residents were evacuated out of their homes. One full row of homes, at least six, were burned down by the fire caused by the explosion. Another 16 homes were damaged. Nearby apartment complexes are also being inspected before residents are allowed back into their homes. At least one person was killed by the explosion and resulting fire, and another five people are still unaccounted for.

Natural gas main had passed inspection

A representative for UGI Utilities, Inc., has released a statement that the gas main near the Allentown, Penn., natural gas explosion had passed a “routine leak inspection.” There is a 12-inch cast iron natural gas main that runs under a large portion of the city that is checked for leaks on a regular basis. The utility also indicates that there was no history of leaks under the row housing that exploded and no calls about gas odors. The company is uncertain what could have caused the natural gas explosion. It took crews approximately five hours to cut through the reinforced concrete and seal the gas main on both sides of the burning fire on Thursday morning.

Sources

MSNBC
Salon.com

Louisiana state employees may not be getting a raise. Image: Flickr / MoneyBlogNewz / CC-BY

In Louisiana, state employees may be facing a limit on annual pay raises. This would be the second year of pay freezes in the state. Employee advocates, however, are calling this move the equivalent of a payday loan for the state.

Louisiana state pay raises

The state of Louisiana is facing a $1.6 billion budget shortfall. Each year, along with annual reviews, employees generally qualify for pay raises up to 4 percent. Last year, the state froze Louisiana state employee pay raises and saved about $55 million. Gov. Bobby Jindal has suggested extending these pay raise freezes for the 2011-2012 budget year to continue the savings. This would freeze only annual pay raises, not raises associated with promotions.

Louisiana budgetary woes

By trying to fix the Louisiana budgetary problems with pay freezes, the state legislature is not making friends. State commission members who represent employees have expressed concern that the state is “attempting to balance the budget on the back of workers.” Calling the pay freeze an emergency loan that will end up costing the state more money, employee advocates are attempting to push through at least a cost-of-living adjustment for employees. Many states are using pay freezes, furlough days, and even layoffs as a way to balance budgets. In Louisiana, cutting out pay raises is a relatively low-impact measure to balance the budget.

Where Louisiana stands

Though the state is trying to cut almost $2 billion out of the budget, Louisiana is in a better position than most states, economically. The average unemployment rate in Louisiana is 7.7 percent, while the average national rate is about 9 percent. Louisiana state colleges also have one of the lowest in-state tuition rates in the nation. The state commission is currently drawing up proposals, and the final budgetary decisions will be made by March 11.

Source

Bloomberg

Traffic cameras are enforcing speed limits in Baltimore - but the city is the one paying up. Image: Flickr / scottiet812 / CC-BY-SA

In Baltimore, Maryland, city lawmakers are considering adding more speed cameras. These automated speed traps have been reducing speeding but not accidents. Even if the city does add more tickets, these cameras are not making money for the city.

Baltimore speed cameras

In Baltimore, Md., the city council set up several speed traps in “high risk” areas such as school zones. The tickets issued by these speeding cameras are usually about $40 and are officially issued by the city of Baltimore. The police have found that these cameras are reducing the amount of speeding by half or more, but the amount of collisions has not been going down.

Baltimore’s speed cameras

The speed cameras planted in high-risk areas of Baltimore have been issuing tickets for several months. The City of Baltimore, however, is not seeing much of the money from the tickets. The speed cameras are more like payday loans to the city. Sure, the city gets money, but it also has to pay out most of the money received. The cameras that track and record speeders are owned, monitored and operated by a private company, and $32 of every $40 ticket is paid to the private contractor. The city has to pay for the installation of the cameras, and has actually lost money on the deal thus far. Despite the fact the cameras lose money, the city is considering taking a short-term loan to install even more cameras.

Turning police work over to private contractors

Baltimore is not the only city paying private companies to take over their work. Legally, these traffic enforcement cameras are facing difficult times. A defendant’s right to face their accuser has been cited multiple times by drivers who have been ticketed by a camera or automated system, and many tickets have been overturned. In general, the fact that most people don’t fight their traffic tickets means that private companies are making millions of dollars by doing a city’s police work for them.

Sources

ABC 2
Wikipedia – Traffic Enforcement Camera

Texas is rolling its federal debt into the private market - but does this solve problems, or create them? Image: Flickr / MoneyBlogNewz / CC-BY

Unemployment is high, and with up to 99 weeks of benefits available, states have paid out a lot. The federal government has provided loans to most states to fund unemployment benefits. The interest payments on those loans are coming due, and some states are seeking creative solutions.

Federal unemployment loans

In order to keep unemployment benefits flowing, the federal government provided loans to states such as Texas. The loans did not require any interest payments for several years. However, the interest payments are now coming due on these loans. These payments add up to as much as $10 million to cover interest on the loans. The federal government waived interest on these no credit check loans for two full years, but the interest-free period expired on Dec. 31 of 2010.

Texas payments on unemployment loans

The federal government provided what amounted to payday loans no faxing to the states. The agreement included a clause that states would be required to start making interest payments as of 2011. Though Congress has considered bills to extend this no-interest period, they have no passed. Idaho, Texas and several other states have not necessarily been able to make these payments. Rather than going into debt, which state law does not allow for, they are rolling the debt into private market loans. That means investors will pay off the federal government, but the states will be on the hook for more money, for longer.

The commercial municipal debt market

Municipal bonds and municipal debt are a large private market. When states, counties and cities are in need of credit, they sometimes go to private debt markets. In Texas and Idaho, these no-credit loans have been rolled to the private market. The states will not have to make a $10 million payment to the federal government. The states, however, will be required to make smaller payments over a longer amount of time, which will add up to a higher payment in the end.

Sources

ProJo
Slate

Industrial accidents, like when the man died in a tortilla mixing machine, happen more often at night. Image: Wikipedia Commons

It was an accident that seems more like it belongs on “Bones.” A man in Brooklyn died in a tortilla mixing machine. The 22-year old was pronounced dead on the scene.

Man dies in tortilla mixing machine

In Brooklyn, N.Y., a young man died while at work at the Tortilleria Chinantla in Williamsburg. Police were called at 2:30 a.m. Juan Baten apparently dropped something into the mixing machine. He bent over to retrieve the item out of the waist-high mixing machine. The machine, however, immediately sucked him in and killed him. Police have said that they expect there was no criminal intent or activity. This particular factory has not had any history of industrial accidents or worker complaints in the past.

Focusing on workers’ rights

The Tortilleria Chinantla has not had any record of safety violations in the past. Juan’s co-workers apparently tried to pull him out of the machine, but were not able to. Employment activist groups have released several statements about this tortilla mixing machine accident. Focus On The Food Chain is a workers’ rights campaign that has taken the opportunity to try to start a discussion of food processing and food distribution warehouses that supply New York City. They are investigating the tortilla mixing machine incident for any wrongdoing by the company.

The problem with 24-hour workdays

The industrial accident at the tortilla factory is just one more example of a trend in industrial accidents. Much like Chernobyl, Three Mile Island and even vehicle accident statistics, late night is a dangerous time to operate heavy equipment and machinery. The human brain is naturally more sleepy at night, even with a lot of sleep during the day. The 24-hour nature of many manufacturing processes puts a lot of workers at risk of late-night accidents.

Sources

NY Post
Gothamist

Lawmakers in Maryland are facing a huge budget deficit. Image: Wikimedia Commons

State budget time is here again, and shortfalls are plaguing almost every state. Maryland is attempting to fill a $1.6 billion shortfall using emergency money and creative tactics. With several unfunded long-term liabilities, however, the state may have to take on more than a single year’s budget.

The Maryland budget shortfall

The Maryland state budget is currently facing a $1.6 billion shortfall for the fiscal year. Governor O’Malley is proposing that the full budget shortfall be filled without adding any taxes or fees to the state budget. Beyond the individual year’s deficit, Maryland also has more than $18 billion in unfunded pensions due in the next 25 years. There is also an estimated $15 billion in Medicare, Medicaid and health care costs.

Addressing Maryland’s budget deficit

Democratic governor O’Malley is proposing several reforms to help fill the budget shortfall. There will be several million, if not billions in cuts to state budgets. State employees, however, will also be providing a large amount of the emergency money the state needs to make ends meet. The state is inviting applications for a buyout offer — where the state pays employees to leave their jobs. There have already been 1,500 applications for buyouts, most of which the state is very likely to accept.

Health care costs a point of contention

A point of contention for a large part of the Maryland legislature is health care. There is a huge deficit built into the system. Long-term care providers in Maryland are already facing over $180 million in budget cuts. States are responsible for a significant portion of the costs of Medicare and Medicaid, and with budgets being stretched to the limit, the amount they are willing to pay is going down. For many long-term care facilities, that means trying to care for seriously ill patients on less and less money every day. In Maryland, no additional fees or taxes mean they could have to try and make do with even less.

Sources

Bloomberg

200 dairy cows were found dead in a Wisconsin field. Image: Wikimedia Commons

In yet another mass animal die-off, 200 cows, dead, were discovered on a Wisconsin farm. The National Wildlife Heath Center is investigating the 200 dead cows. These mass die-offs, however, are likely not anything unusual.

Wisconsin farmer finds 200 cows dead

A Portage County dairy farmer came out to his fields on Friday to make a grisly discovery. 200 cows were lying dead in his field of no obvious cause. Semi trucks were called in to haul away the carcasses, and samples from the cattle were sent into a lab for tests. The farmer has not yet been identified, and wishes to remain anonymous at the moment. Stockton, Wis., newspapers are reporting that the dairy farmer and officials say that there is “no reason to think that whatever killed the cows could kill humans, too.”

Investigating the mass cow die-off

There are several possibilities for what could have killed off the 200 dairy cattle. Bovine virus diarrhea or infectious bovine rhinotracheitis are both good possibilities for the cause of the death. Pneumonia is also a possible cause. The National Wildlife Health Center is a U.S. Geological Survey department that investigates major animal “mortality events.” The NWHC has been in existence since the 1970′s. The cause of the cow die-off in Wis., may be reported by the media, but likely will take months to investigate and enumerate.

The prevalence of mass animal deaths

Though mass animal deaths from Romania to Idaho have been making headlines over the last six months, they are not as unusual as they may seem. The Associated Press reports that about 163 “mass animal mortality events” are average for a year. There have been mass die-offs much larger than the ones recently reported that simply did not make headlines. Most often, it is trauma or disease at cause for mass animal die-offs, and sometimes the cause remains a mystery.

Sources:

News One
City Pages

San Diego's economic outlook hasn't made it easy for people to afford beach treats. (Photo Credit: CC BY-SA/Smart Destinations/Flickr)

In keeping with the national trend of recession, San Diego County’s job outlook isn’t exactly as shiny as a new catamaran. However, as University of San Diego economics professor Alan Gin recently told the La Mesa-Foothills Democratic Club, San Diego is no longer shedding jobs at a record pace. As the La Mesa Patch reports, even a net gain of 100 jobs from November 2009 to November 2010 can be viewed as good news.

San Diego’s economic outlook in a holding pattern

Professsor Gin, a respected economic forecaster, says that San Diego’s economic outlook is no longer in free fall. In his PowerPoint presentation to the La Mesa-Foothills Democratic Club audience, Gin predicted that the national job report for December – which will be released Friday – should feature a “really good number” that will in turn bode well for San Diego’s economic recovery.

Referring to his most recent monthly “index of leading economic indicators,” Alan Gin predicted that San Diego home prices would increase by 5 percent to 7 percent this year. In addition, a net gain of 1,000 to 1,500 jobs is on Gin’s radar for 2011. As the city has suffered through three straight years of job shedding – 70,000 jobs were eliminated in 2009 alone – an increase of this magnitude would be precious, indeed.

San Diego job fields to watch in 2011

According to Gin, health care, admin-support and hospitality are San Diego County job fields that will see the most growth in 2011. Yet it is defense/Homeland Security, biotech, communications and green technology businesses that are expected to be the driving forces of the area’s economy. One such green tech company in San Diego that Gin named was EcoATM, a kiosk-based business where consumers can recycle old cell phones for store vouchers.

Reach for your gin, it’s a lackluster GDP forecast

Significant growth in San Diego’s gross domestic product would be a welcome sign of high net job growth, but San Diego isn’t quite there, said Gin. He projected 3- to 3.5-percent growth for 2011, which is hardly enough to allow for job growth. Yet San Diego is no longer spiraling toward even higher unemployment and lower consumer confidence, complete with a decline in spending, investing, hiring and payday lending.

“At this point, we’ve flattened out,” said Gin.

Sources

Alan Gin’s USD homepage

La Mesa Patch

Alan Gin on San Diego avoiding the ‘double-dip’

Snowplow supervisors have been accused of buying beer instead of working. Image: Wikimedia Commons

New York authorities have launched an investigation into four NYC snow bosses. Allegedly, these four union NYC snow bosses bought beer and sat in a car rather than cleaning up snow. The investigation is also digging into the question of a purposeful work slowdown.

Investigation into NYC snow bosses’ beer

After an article published by the “New York Post” that cited unnamed sources, New York officials have launched an investigation. The allegations are first and foremost that four Department of Sanitation workers parked their car, purchased beer drank it on the clock, while the city was mired in snow. The convenience store where they allegedly got beer no longer has surveillance tapes of that day, so the investigators are questioning all city employees who may have information about the incident.

Alleged slowdown during NYC snowstorm

The investigation into NYC snow bosses’ beer is just one part of the investigation into the response to the East Coast snowstorm of 2010. There are many rumors that union bosses told their employees to slow down work as a way of “punishing” the city for financial cutbacks. The official union representatives have denied that any slowdown was encouraged. About 10 percent of the NYC Sanitation Department’s workforce called in sick during the storm, about five times more than an average day.

Effects of the snowstorm response

There have been many questions about the effectiveness of the New York City Department of Sanitation response to the snow storm. Some estimates say that between five and 25 individuals may have died because emergency crews were unable to reach homes of those who needed assistance. Rather than a purposeful slowdown, the New York City Department of Sanitation is blaming the slow response on broken-down equipment and very high winds. If the investigation of NYC snow bosses buying beer finds that the allegations are true, the supervisors could face losing their jobs.

Sources

CNN
Newser

The main chairlift at the Sugarloaf ski resort has been blown off its tracks. Image: Wikimedia Commons

A large gust of wind in Carrabasset Valley, Maine, brought down a ski lift at the Sugarloaf ski area. The Sugarloaf ski lift brought five chairs down 40 feet and stranded 100 others. Ski patrol and emergency response at Sugarloaf ski resort in Maine are evacuating the stranded skiers individually using climbing harnesses.

Sugarloaf ski lift collapse

At approximately 10:45 a.m. on Tuesday, a very strong gust of wind hit the Sugarloaf ski area. The cables of the Spillway East Slope lift derailed. This threw five chairs 30 to 40 feet down to the snow, injuring several skiers. About 100 other skiers were trapped on the lift. Wind gusts at the Sugarloaf ski area had reached 20 to 30 miles per hour this morning. The temperature is hovering around 8 to 10 degrees, making cold the next big risk to the trapped skiiers.

No critical injuries at Sugarloaf

Though the ski lift collapse at Sugarloaf injured several skiers, nobody was critically injured. Emergency Management for Franklin County, Maine reported that they were at “condition yellow” at Sugarloaf, meaning that nobody was critically injured or died. Emergency management crews were working with ski patrol to evacuate skiers off the Sugarloaf Spillway lift. Estimates said that it would take between 90 minutes and two hours to evacuate all of the skiers off the lift.

Evacuation off the Sugarloaf ski lift

The Sugarloaf ski lift evacuation is being done using ropes and harnesses. Teams are throwing ropes over the broken-down ski lift and harnessing skiers to slide down. They are describing the procedure as “much like rock climbing” and are belaying skiers off the lift, skis and all. The Sugarloaf ski resort will be shutting down the Spillway East lift for at least a few days, if not weeks, in order to repair the broken lift. This is just the latest fallout from the East Coast blizzard that has snarled traffic, shut down cities and caused power outages across the coast.

Sources

WMTW
CNN

Nucor steel is taking advantage of new-business incentives and loans from Louisiana. Image: Flickr / chasbot / CC-BY-SA

In Louisiana, 2010 has been an up-and-down economic year. Economic development in the state suffered several major setbacks. By using a combination of tax incentives and short-term loans, though, the state is likely to see slow growth in 2011.

Effect of closures on Louisiana

The biggest hit to Louisiana’s economic development this year was the BP oil spill. When the federal government shut down offshore oil drilling in the Gulf, many workers in Louisiana found themselves unemployed. Employees and businesses have been reliant on emergency loans or remuneration from BP and the federal government to stay afloat. Beyond just the oil spill, NASA, Northrop Grumman Corp. and General Motors have announced shutdowns that will cut 7,500 jobs from the state.

New businesses opening in Louisiana

In some mid-size Louisiana cities such as St. James Parish, Michoud and Alexandria, Louisiana, the economic outlook is not entirely negative. By using a combination of tax incentives and short term loans, the state has attracted some big new businesses. A Nucor Corp. steel plant is expected to open in St. James Parish and employ 1,250 people and spend $3.4 billion in the state. A high-tech wind turbine company is also using Louisiana’s offer of short term loans to help open a wind turbine plant that will employ 600.

New proposed taxes on drilling

The federal government is currently considering $36 billion in proposed taxes on the oil drilling industry. The government has also ordered the industry to spend $4 billion on cleaning up abandoned oil rigs. The relationship of oil companies to the state of Louisiana is a tumultuous one. The industry has spent billions of dollars in the state. At the same time, oil drilling is moving to other countries and not quickly paying up on promises of emergency loans to residents.

Source

Bloomberg

Though they consider it a payday loan to the budget, legislators may approve gambling in Texas. Image: Flickr / jimg944 / CC-BY

There is a new Texas legislature convening soon. This legislature will be facing a huge budget deficit. Casino interests are trying to get the legislature to allow casinos in the state to give a short-term loan to the state budget.

Texas gambling interests

Lawmakers in Texas are going to be convening their new session in just a few weeks. The legislature will be facing a budget deficit of $20 billion or more. While meeting in Fort Worth, lawmakers will have to increase revenue or decrease spending through program cuts — neither of which are going to be easy or popular. Gambling interests are trying to get the legislature to legalize gambling within the state as a way to meet that budget deficit.

Previous attempts to legalize Texas gambling

Lawmakers have considered legalizing gambling within Texas state lines before. Last time, gambling interests tried to push through a bill that would have legalized gambling within the state. Despite a rider that would have devoted gambling revenue to college scholarships, the bill was soundly defeated. Many lawmakers say that casinos are more than a short term loan to the budget. Some consider casinos and gambling to be a payday loan that has to be paid back with increases in law enforcement and social services.

How Texas gambling would work

If the Texas legislature passes a bill to legalize gambling, it would not happen immediately. First, the Texas constitution would have to be changed. Second, a significant amount of gambling revenue would be earmarked as a way to help fund higher education. Third, gambling would be put up for a public vote, and would likely be limited to individual municipalities, such as Irving and Tarrant County. Lobbyists are unsure whether the Texas gambling bill will make it through the legislature, but the desperate need of short term loans for the budget may give it a better chance of passing.

Sources

Miami Herald

The NYC MTA is accepting LIRR tickets at Penn Station as a way to handle snowfall. Image: Wikimedia Commons

In the Northeast, huge snowfall totals are snarling business and traffic across multiple states. The website for the New York City MTA, which manages transit in and around New York City, has been practically shut down. New Jersey transit is trying to keep major routes online. The Long Island Rail Road, LIRR, is mostly offline, though New York City transit is honoring LIRR tickets at some stations.

MTA trip planner alternative

The New York City MTA is the only service with most routes still running. The MTA transit planner is proving difficult to access, however. The extreme amount of traffic on the MTA NYC website is crashing the servers. There is an alternative to the MTA transit planner, however. MTA and Google partnered quite a while ago to create transit maps on Google maps. Using the Google Transit MTA Trip Planner will show you the MTA route for your trip. However, Google Transit maps are based on a best-case scenario, so call the MTA at (718) 243-7777 to confirm.

NJ Transit bringing service online

The NJ transit service is trying to clear bus and light rail services as quickly as possible. Trains are running on an enhanced holiday schedule, and there are 15- to 20-minute delays on some rail lines. The NJ Transit service is encouraging riders to stay home today, because “getting to the station will be trouble enough.” If you are using the NJ Transit trip planner, officials are suggesting using Jan. 17, 2011 as the “travel date” to get accurate plans.

Long Island Rail Road

The Long Island Rail Road is facing its own troubles in getting passengers around. With snowfall totals of 16 inches or more, the blizzard warning is in effect until 6 p.m. Monday. The LIRR is using scraper shoes, jet-powered snowblowers, hot-air jets, snow brooms and other snow clearing equipment to clear the rail lines. All local stops at about 10 stations are running, though there are many trains that got stuck. New York City transit MTA services are honoring tickets for subway service from Penn, Atlantic Terminal and Jamaica stations.

Are you in the Northeast trying to catch the MTA, LIRR, or NJ transit service today? Having any luck?

Sources

Newsday
NJ.com

That status of unemployment in Maryland is better than in many states. Image: Flickr / labor2008 / CC-BY

The long-term costs of unemployment on state and federal government reserves are adding up. For 60 percent of states, unemployment trust fund reserves have simply run out. The state of Maryland has paid back their federal loan, which will save the state millions of dollars.

Maryland unemployment loan

In order to keep paying out unemployment benefits, 30 states have been required to take short-term loans from the U.S. Treasury. These loans have been interest-free for the last two years, thanks to a provision of the stimulus bill. These literal payday loans kept Maryland unemployment benefits flowing, even though the trust fund had run out of money to pay out benefits.

Interest on short-term federal loans

On Dec. 31, 2010, the federal treasury bonds that have been paying unemployment benefits will start accruing interest. This does not mean that states will no longer be able to get these short term loans. It does, however, mean that the loans will start accruing daily interest. The states will owe that interest directly to the U.S. Treasury. Estimates put the amount of interest owed on these loans somewhere around $2 billion in 2011, and up to $65 billion by 2013. The employer obligation for unemployment taxes will also be going up in 2011, with minimum unemployment insurance rates increasing by as much as 100 percent in some states.

Maryland avoids federal interest

Though 30 states have taken out short term loans to keep their unemployment checks coming, most will be liable for the interest of these loans. The only way states have to avoid this interest is to pay back the money borrowed from the federal government. Four states with dropping unemployment rates have been able to pay back their loans. Maryland, New Hampshire, South Dakota and Tennessee are going to be free of the interest obligations of their loans. Maryland has been able to do this thanks to their steadily dropping unemployment rate — a luxury many states simply do not have.

Sources:

National Conference of State Legislatures

Were Federal Housing loans priced in a discriminatory way in Baltimore? Image: Flickr / kozumel / CC-BY-ND

In Baltimore, Maryland, and surrounding areas, there have been accusations of discriminatory lending rates. Federal Housing Administration secured loans are supposed to maintain a consistent rate. Some research says that Baltimore borrowers may have paid a higher rate when they bought homes in minority neighborhoods.

Baltimore FHA loans

A community-organizing group in Baltimore has released a study it says proves discrimination in FHA loans. For all loans that are Federal Housing Administration secured, the interest rate should be close to the same. Unlike traditional housing loans, the credit score and amount of the loan have very little effect on the rate. Veteran’s Administration loans have a similar structure. In a study of the FHA loans offered to Baltimore, Maryland, residents, however, it was discovered that homes in minority and low-income neighborhoods tended to have higher interest rates.

Overages may be at fault

For more than a decade, the Justice Department has identified “overages” as a place of possible abuse in FHA loans. Employees are usually given some latitude in determining processing fees and “overages” on loans. These loan overages help determine the commission that the salesperson is paid for the GHA mortgage they help set up. By charging low-income or minority neighborhood borrowers more in overages, purposefully or not, the loans could end up discriminatory.

Federal Reserve analysis counters discrimination charge

In an analysis of the FHA loans during 2008, the same year that Communities United studied, the Federal Reserve counters the charge of discrimination. The Federal Reserve studied these same Baltimore FHA loans, using information that is not readily available to the public. In order to preserve privacy, the exact dates mortgages are offered are not published. The Federal Reserve claims that the anomaly in mortgage cost happened because of the dive in home prices in late 2008. If the Baltimore FHA mortgages were discriminatory, then the data from 2009 and later years needs to be researched to determine the truth.

Sources

Baltimore Sun

As of Friday afternoon, only the brick and towers of the Provo Tabernacle still stood. Image: Wikimedia Commons

Around 2:45 a.m. on Friday morning, the historic Provo Tabernacle caught fire. Just a few hours later, the roof collapsed and firefighters took a defensive posture. The Provo, Utah, religious building is likely a complete loss.

Provo Tabernacle fire was difficult to fight

When firefighters were called to the Provo Tabernacle fire on Friday morning, they found the blaze tough to fight. The building, which was completed in 1898, has been renovated several times. The complicated layout of the building combined with the very hot fire meant that firefighters had to fight the fire entirely from the outside. At about 6 a.m., the roof of the Provo Tabernacle collapsed. By noon, only the brick facade and towers of the Provo Tabernacle were still standing. Firefighters remained on the scene to provide protection for nearby buildings.

Unknown cause of the Provo Tabernacle fire

The cause of the fire at the Provo Tabernacle has not yet been determined. Investigators will have to sort through the remains of the building after the fire has burned itself out. However, the fire department it isn’t suspected that there was a “suspicious” cause to the fire. Brigham Young University film crews that had been filming in the building the night before reported a “smell like a hot glue gun.” The crews believed it was the hot lights for the concert filming causing the smell and did not think much of it.

History of the Provo Tabernacle

The Provo Tabernacle was considered a Provo landmark. The building was constructed as a religious building in 1898 and cost about $100,000 — about $2.5 million in 2009 dollars. In 1918 and again in 1949, the roof of the building was condemned because the clock tower put too much stress on the roof. The clock tower was eventually removed. The building has been in continuous use since it was built, and it was protected by the National Historic Register. The Church of Jesus Christ of Latter-day Saints, which owns the building, has not yet indicated if it will try to save or rebuild the Provo Tabernacle.

Sources

Deseret News
Utah.com