81R18209 CBE-D
By: Mallory Caraway H.R. No. 1138
R E S O L U T I O N
WHEREAS, Deteriorating conditions in the credit markets have
severely diminished the ability of cities to access traditional
sources of funding for projects that meet critical local needs;
consequently, many municipal projects today are in jeopardy or are
being delayed, with prospects for their future realization highly
uncertain; and
WHEREAS, Municipal projects provide important, effective
economic stimulus and are worthy of partnership with the federal
government; civic projects instantly create and cause the retention
of multiple thousands of jobs in many different industries; city
projects often include partnerships with the private sector that
create a leveraging of mutual interests and maximum economic
benefit for the greater community; many city projects are transit
oriented, which spurs additional economic benefit; moreover, when
projects involve the enhancement or development of public mass
transit, they result in reduced highway congestion, reduced air
pollution, and reduced dependence on foreign oil; and
WHEREAS, Projects supported by municipal bonds are vetted
locally, approved in elections by local voters, and administered
locally, conditions that promote the highest level of transparency
and accountability; and
WHEREAS, Recently passed amendments to the Troubled Assets
Relief Program (TARP) legislation that are contained in H.R. 384,
Section 402, clarify the authority of the U.S. Treasury regarding
municipal securities; exercising the authority to directly
purchase such bonds, and/or provide credit enhancements for them,
would provide an opportunity to realize immediate, significant
contributions to our economic recovery; and
WHEREAS, Directly purchasing municipal securities at
appropriate interest rates, or providing credit enhancements that
allow cities access to traditional market interest rates for bonds,
would give the federal government the opportunity to be repaid,
with interest, the entire sum it furnishes through the partnership;
in addition, providing this relief in the municipal credit markets
would result in a significant tax reduction for local taxpayers in
the form of dramatically reduced publicly funded interest costs;
and
WHEREAS, Working together to construct an efficient
application of the authorization provided in H.R. 384, Section 402,
would greatly enhance our country's progress toward economic
recovery; now, therefore, be it
RESOLVED, That the House of Representatives of the 81st Texas
Legislature hereby respectfully urge U.S. Secretary of the Treasury
Timothy Geithner to implement a plan that will allow cities
affected by the credit crisis to access traditional market interest
rates for bonds; and, be it further
RESOLVED, That the chief clerk forward an official copy of
this resolution to the U.S. secretary of the treasury.