Wouldn't (if ruled favorably to the City) the Rams/NFL lawsuit also be a bit of an option for debt repayment? Or am I blindingly ignorant to the ability to apply those funds?
KCs proposed spending. I expect STLs will be similar.
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As a heads-up, I'd just like to clarify that I'm not saying the City should pay off all of its bonds ASAP, as there is tremendous value in being able to borrow and extend out payments. My thoughts are that the best thing we can do, fiscally speaking, is to make sure we are paying off our debts at the best interest rates possible. It's just like a refinancing on one's house, to lower a 5% interest payment to 3%. With this in mind, I'd like to see as much refinancing of high interest debts as possible, as our nearly 500MM allocation provides us the chance to do so smartly. Best practices towards eliminating unnecessary spending of public monies, and it sure makes it easier to increase the City's bond ratings going forward.
Wabash: I get ya. When I read "austerity", I'm thinking of Greece's economic spiral that started in 2009. On an absolute basis, that is not what I've ever considered here. Certainly, STL does not need anything nearly as extreme as "austerity", especially noting that - all things considered - the City's finances aren't too shabby. We should just make sure to pay down our outstanding debts at the best rates possible.
FYI I'm writing this as Chairman Powell discusses how the Fed will look to not raise interest rates until, at earliest, 2023. This is all a long-term process to get the economy firing on all cylinders again.
Where it comes to bond financing, I have tremendous confidence in Comptroller Green's office to handle these things. No worries at all.
Very glad to see that Cara Spencer has a plan for allocating these monies. In addition to funding education and public safety, this draft of proposals looks quite reasonable and responsible, with an eye towards long-term economic stabilization. She's quite smart, and deliberate. Curious what Tishuara Jones will propose.
Wabash: I get ya. When I read "austerity", I'm thinking of Greece's economic spiral that started in 2009. On an absolute basis, that is not what I've ever considered here. Certainly, STL does not need anything nearly as extreme as "austerity", especially noting that - all things considered - the City's finances aren't too shabby. We should just make sure to pay down our outstanding debts at the best rates possible.
FYI I'm writing this as Chairman Powell discusses how the Fed will look to not raise interest rates until, at earliest, 2023. This is all a long-term process to get the economy firing on all cylinders again.
Where it comes to bond financing, I have tremendous confidence in Comptroller Green's office to handle these things. No worries at all.
Very glad to see that Cara Spencer has a plan for allocating these monies. In addition to funding education and public safety, this draft of proposals looks quite reasonable and responsible, with an eye towards long-term economic stabilization. She's quite smart, and deliberate. Curious what Tishuara Jones will propose.
I'm not understanding how this federal funding helps the city to refinance its debt. What's the connection? I mean can't we refinance whenever it makes sense?
^How much control does the Fed have over interest rates? Can't private banks raise them when they feel the need (or benefit)? I remember the days when St. Louis-based Southwest Bank was known nationally as one of the first to raise or lower rates, and other banks seemed to follow their lead.
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^Quincunx: The inflow of half a billion dollars cash makes the City that much more likely to be able to soundly repay its debts on time, increasing its credit rating. Therefore, it's reasonable to take this time to have some debts refinanced to a lower interest rate. Yes, we can refinance debts at any time, but we will soon have the chance to do so with a much, much stronger financial footing. Improving our credit rating would do a hell of a lot. Again, as far as I know, all bonds of the City of Saint Louis are investment grade debts.
^Framer: They directly oversee national rates of borrowing.
Think of it as not what the retail banks charge the consumer, but what the US Government makes available to the retail banks that they then lend out.
The Federal Reserve oversees the monetary system and the financial system. Their primary jobs are to manage monetary policy and maintain national financial stability. It's arguably the most powerful single entity in global economics. Concurrently, the Fed's Open Market Committee has a dual mandate to maximize employment and keep prices stable. It also proactively manages short-term and long-term interest rates. I also remember how Southwest Bank was a leader in how they managed their own rates, but recognize that they are all based off of what the Fed does first.
Here's CNBC's news from today's Fed statement:
Fed sees stronger economy and higher inflation, but no rate hikes
^Framer: They directly oversee national rates of borrowing.
Think of it as not what the retail banks charge the consumer, but what the US Government makes available to the retail banks that they then lend out.
The Federal Reserve oversees the monetary system and the financial system. Their primary jobs are to manage monetary policy and maintain national financial stability. It's arguably the most powerful single entity in global economics. Concurrently, the Fed's Open Market Committee has a dual mandate to maximize employment and keep prices stable. It also proactively manages short-term and long-term interest rates. I also remember how Southwest Bank was a leader in how they managed their own rates, but recognize that they are all based off of what the Fed does first.
Here's CNBC's news from today's Fed statement:
Fed sees stronger economy and higher inflation, but no rate hikes
Framer, just noticed you passed the 10K mark. Not sure when that happened, but damn. Nice.framer wrote: ↑Mar 17, 2021^How much control does the Fed have over interest rates? Can't private banks raise them when they feel the need (or benefit)? I remember the days when St. Louis-based Southwest Bank was known nationally as one of the first to raise or lower rates, and other banks seemed to follow their lead.
Bank lending isn't really a factor as St. Louis borrows via the capital markets (insurance companies, pension funds, endowments, or wealthy retirees) as opposed to borrowing from banks. The rates depend on what the investors demand whenever the bonds are issued.
The scale of this funding is really incredible. 2.5X what KC and the County got. It sounds like St. Louis will be collaborating with Louisville, LA, Birmingham, Dayton and Philadelphia (the other participants in the Stimulus Command Center program) on how best to use the stimulus dollars.
The federal money has to be spent within a few years, correct? How does that help a creditor think the city is in better financial condition (setting aside the hole being filled from the impact of the pandemic)?
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$250M will come in May of this yearquincunx wrote: ↑Mar 17, 2021The federal money has to be spent within a few years, correct? How does that help a creditor think the city is in better financial condition (setting aside the hole being filled from the impact of the pandemic)?
and 250M in May of 2022
all has to be spent by 2024
Mayor Krewson Releases Framework Plan for Investing Resources from the American Rescue Plan
$61 million to address the City's looming housing crisis, including expanded services and shelters for the unhoused community, additional rental and mortgage assistance, and expanded affordable housing units
$78.5 million to support various public safety initiatives impacted by the pandemic, including the stabilization of City-owned vacant buildings to help repopulate neighborhoods and create home ownership opportunities, the removal of derelict buildings that harbor criminal activity and contain significant levels of lead, the expansion of the City's 911 diversion and Cops & Clinicians programs to address mental and behavioral health needs, and to address pay equity and competitive compensation among emergency first responders
$34.75 million to address employment and small business, including additional grants and forgivable loans through St. Louis Development Corporation and seed capital to support various jobs initiatives within the “STL 2030 Jobs Plan: Driving a Decade of Inclusive Growth”
$80 million to address critical City infrastructure and deferred maintenance, including health and safety upgrades to recreation centers, correctional facilities, and water infrastructure
$175 million to offset lost general revenue due to the COVID-19 pandemic
$19.5 million to address needs at the City's Department of Health, the possible replacement or renovation of its existing facility, upgrades and repairs to the City's animal shelter facility, and forgivable loans to childcare providers
https://www.stlouis-mo.gov/government/d ... n-2021.cfm
$61 million to address the City's looming housing crisis, including expanded services and shelters for the unhoused community, additional rental and mortgage assistance, and expanded affordable housing units
$78.5 million to support various public safety initiatives impacted by the pandemic, including the stabilization of City-owned vacant buildings to help repopulate neighborhoods and create home ownership opportunities, the removal of derelict buildings that harbor criminal activity and contain significant levels of lead, the expansion of the City's 911 diversion and Cops & Clinicians programs to address mental and behavioral health needs, and to address pay equity and competitive compensation among emergency first responders
$34.75 million to address employment and small business, including additional grants and forgivable loans through St. Louis Development Corporation and seed capital to support various jobs initiatives within the “STL 2030 Jobs Plan: Driving a Decade of Inclusive Growth”
$80 million to address critical City infrastructure and deferred maintenance, including health and safety upgrades to recreation centers, correctional facilities, and water infrastructure
$175 million to offset lost general revenue due to the COVID-19 pandemic
$19.5 million to address needs at the City's Department of Health, the possible replacement or renovation of its existing facility, upgrades and repairs to the City's animal shelter facility, and forgivable loans to childcare providers
https://www.stlouis-mo.gov/government/d ... n-2021.cfm
"$78.5 million to support various public safety initiatives …"
Two words: ROBO COP
Two words: ROBO COP
Biden next round going even bigger. Being reading about $3 trillion dollar plan. Here is link to WSJ article.
https://www.wsj.com/articles/biden-admi ... _lead_pos1
WASHINGTON—Administration officials are putting together a plan for a multipart economic and jobs package that could cost as much as $3 trillion as a way to enact key elements of President Biden’s campaign agenda, according to people involved in the discussions.
The first proposal would center on roads, bridges and other infrastructure projects and include many of the climate-change initiatives Mr. Biden outlined in the “Build Back Better” plan he released during the 2020 campaign.
That package would be followed by measures focusing on education and other priorities, including extending the Child Tax Credit and providing for universal prekindergarten and free community college, the people said.
https://www.wsj.com/articles/biden-admi ... _lead_pos1
WASHINGTON—Administration officials are putting together a plan for a multipart economic and jobs package that could cost as much as $3 trillion as a way to enact key elements of President Biden’s campaign agenda, according to people involved in the discussions.
The first proposal would center on roads, bridges and other infrastructure projects and include many of the climate-change initiatives Mr. Biden outlined in the “Build Back Better” plan he released during the 2020 campaign.
That package would be followed by measures focusing on education and other priorities, including extending the Child Tax Credit and providing for universal prekindergarten and free community college, the people said.
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Hard to imagine how a bigger bill gets past the filibuster.
^ I think they work things via the budget process like recent Covid bill with a few tax items or adjustments to upper tax bracket/corporate/estate tax to call it a reconciled budget...
From their it becomes a political discussion as I feel that most of the voting public who show up at the ballot for midterms will give Senate as well as maybe the House back to GOP w all the extra spending. I have a tough time seeing any different if another $3 trillion goes through along with major policy changes being talked about. Heck, this pretty much blows Obama away in what Democrats did/passed in his first two years from stimulus under a trillion to affordable care act. So I see it as all in now or nothing before mid terms.
I think the idea of comprising will truly go out the door for decades to come if Democrats remove the filibuster and in my opinion would be a huge mistake because we will go back & forth on extremes and will literally take one party to have control of all of the above from House to Senate to POTUS to pass any meaningful legislation whether we all agree or not. Just look at the statehouses w supermajorities on either side of the aisle to get a feel of what things would be like without a filibuster.
From their it becomes a political discussion as I feel that most of the voting public who show up at the ballot for midterms will give Senate as well as maybe the House back to GOP w all the extra spending. I have a tough time seeing any different if another $3 trillion goes through along with major policy changes being talked about. Heck, this pretty much blows Obama away in what Democrats did/passed in his first two years from stimulus under a trillion to affordable care act. So I see it as all in now or nothing before mid terms.
I think the idea of comprising will truly go out the door for decades to come if Democrats remove the filibuster and in my opinion would be a huge mistake because we will go back & forth on extremes and will literally take one party to have control of all of the above from House to Senate to POTUS to pass any meaningful legislation whether we all agree or not. Just look at the statehouses w supermajorities on either side of the aisle to get a feel of what things would be like without a filibuster.
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The benefit Biden and Dems by extension have is all this stuff in the last plan and in this one is popular with voters, the gop has nothing to offer but cultural wars that nobody outside their base wants and the biggest benefit for Dems is they’ll be the party in charge this summer as we move away from covid. Voters may just want to stick with it in 2022
I don't think a $3 trillion bill is being considered. It sounds like a $3 billion "plan" comprised of at least two bills - one focused on infrastructure and another focused on childcare, pre-K, child tax credits, etc...MarkHaversham wrote: ↑Mar 22, 2021Hard to imagine how a bigger bill gets past the filibuster.
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Don't they only get one of those per year?dredger wrote: ↑Mar 23, 2021^ I think they work things via the budget process like recent Covid bill with a few tax items or adjustments to upper tax bracket/corporate/estate tax to call it a reconciled budget...
I think this is correct. Republicans in competitive districts may decide their best bet is to get on the money train and try to direct as much largess to their constituents as possible, and start voting with the Ds on that basis. Culture wars and debt scolding will only go so far in districts experiencing significant economic decline.dbInSouthCity wrote: ↑Mar 23, 2021The benefit Biden and Dems by extension have is all this stuff in the last plan and in this one is popular with voters, the gop has nothing to offer but cultural wars that nobody outside their base wants and the biggest benefit for Dems is they’ll be the party in charge this summer as we move away from covid. Voters may just want to stick with it in 2022
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Do you have any evidence for that? Rural economies have been visibly declining for decades and it doesn't seem to have hurt Republicans there yet. How much free Federal money did struggling red states like Missouri refuse during the Obama years?SB in BH wrote: ↑Mar 23, 2021Culture wars and debt scolding will only go so far in districts experiencing significant economic decline.
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2 this yearMarkHaversham wrote: ↑Mar 23, 2021Don't they only get one of those per year?dredger wrote: ↑Mar 23, 2021^ I think they work things via the budget process like recent Covid bill with a few tax items or adjustments to upper tax bracket/corporate/estate tax to call it a reconciled budget...
Polling on the most recent stimulus bill is very good, including on individual provisions. Republicans of course are split on most of it, but maybe even that changes once people have see the money in their bank accounts, get vaccinated, and the economy expands as expected. If you look at the crosstabs every single demographic ranks economic issues as their top priority. Of course its only one poll and polls are less reliable than ever, and are not indicative of how people will vote in a mid-term 18mos from now. But there are signs that voters' political calculus is changing.MarkHaversham wrote: ↑Mar 23, 2021Do you have any evidence for that? Rural economies have been visibly declining for decades and it doesn't seem to have hurt Republicans there yet. How much free Federal money did struggling red states like Missouri refuse during the Obama years?SB in BH wrote: ↑Mar 23, 2021Culture wars and debt scolding will only go so far in districts experiencing significant economic decline.
Regarding federal money in the Obama years, not sure how predictive that is for this administration. Biden just isn't as divisive of a figure as either Obama or Trump, and to your point, the decline is real and conditions are even worse now, including in rural areas. Team D also seems to be more willing now to end-run state legislatures where they can, for example by limiting their ability to use stimulus money to plug budget holes created by tax cuts.
Technically, one for FY2021 and one for FY2022. They get two this year because it didn't get used last year. Next year, they'll only get one bite at the apple (for FY2023), should they pass a second reconciliation bill this year.
$3 billion in federal budgeting is like $5 to you or me. It's an utterly meaningless sum of money if you're trying to put together a substantive national infrastructure package.wabash wrote: ↑Mar 23, 2021I don't think a $3 trillion bill is being considered. It sounds like a $3 billion "plan" comprised of at least two bills - one focused on infrastructure and another focused on childcare, pre-K, child tax credits, etc...MarkHaversham wrote: ↑Mar 22, 2021Hard to imagine how a bigger bill gets past the filibuster.
It's a $3 trillion proposal that is being put together.
And no, there's no chance in hell it could overcome the filibuster. It gets passed via reconciliation, or not at all. Look for Manchin to be a deficit scold on this and demand it be pared back somewhat. He has the power to make that demand, because it almost certainly cannot be passed without his vote.