Markets in Everything: Selling Stimulus Cash
Pasadena Star-News: A few California cities have found an alternate way to use their federal stimulus money: selling it to other cities for cash. (MP: At a pretty steep 30-35% discount.)
Metropolitan Transportation Authority has allocated a minimum of $500,000 in federal stimulus funds to each of the 88 cities in the county for transportation-related projects. Several smaller cities, some without shovel-ready projects, are making deals with others to sell or swap such funds and replenish their general funds.
The city of Bradbury is working on a deal to sell its $500,000 share of federal funding doled out by the MTA to the city of Torrance for $315,000 in cash for its general fund. La Habra Heights has sold its $500,000 in federal funds to the city of Westlake Village for $310,000 cash. Irwindale sold its $500,000 to Westlake Village, for $325,000 cash.
HT: Club for Growth