Last night there was a detailed discussion about what type of liability(ies) the City puts itself in each and every time it accepts stimulus monies.
While philosophically I have an issue with the American Recovery and Reinvestment Act (ARRA, stimulus), over the past week there have been several issues that have come to the front lines of the media that have given me even greater concern about accepting these funds.
The first is the fact that the US Treasury's auto industry task force is now dictating the marketing budget of Chrysler, which has filed bankruptcy and accepted stimulus money in an effort to stay afloat. While I understand the purpose of doing this, I must disagree with the idea that the federal government should have the ability to dictate the marketing and business decisions of a company simply because they have taken stimulus monies. Even if they are to increase regulation, the government should be mindful that a company such as this one greatly relies on marketing to succeed.
The second story that has caught my eye involves the state of California. After the state trimmed $74 million from its budget, the federal government made it clear that if the cuts aren't revoked the state will be denied $6.8 billion in stimulus. Using my logic, this action defies everything the tenth amendment of the US Constitution is supposed to represent. I'm not sure that the best remedy for a frail budget is to have individuals on the other side of the nation deciding what cuts will and will not be made.
These two examples, along with the fact that our biggest creditor, China, is 'terrified' that our nation will default on our debt, and have recently slowed their purchases of US debt, has brought great concern.
At this time, I believe that accepting any stimulus funds will be a detriment to our sovereignty as a city, and puts us in a situation in which we don't know what the rules will be from day to day. It is not a wise business decision, and at this point I will not be a part of it.