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R E S O L U T I O N
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WHEREAS, Deteriorating conditions in the credit markets have |
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severely diminished the ability of cities to access traditional |
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sources of funding for projects that meet critical local needs; |
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consequently, many municipal projects today are in jeopardy or are |
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being delayed, with prospects for their future realization highly |
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uncertain; and |
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WHEREAS, Municipal projects provide important, effective |
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economic stimulus and are worthy of partnership with the federal |
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government; civic projects instantly create and cause the retention |
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of multiple thousands of jobs in many different industries; city |
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projects often include partnerships with the private sector that |
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create a leveraging of mutual interests and maximum economic |
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benefit for the greater community; many city projects are transit |
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oriented, which spurs additional economic benefit; moreover, when |
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projects involve the enhancement or development of public mass |
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transit, they result in reduced highway congestion, reduced air |
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pollution, and reduced dependence on foreign oil; and |
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WHEREAS, Projects supported by municipal bonds are vetted |
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locally, approved in elections by local voters, and administered |
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locally, conditions that promote the highest level of transparency |
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and accountability; and |
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WHEREAS, Recently passed amendments to the Troubled Assets |
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Relief Program (TARP) legislation that are contained in H.R. 384, |
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Section 402, clarify the authority of the U.S. Treasury regarding |
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municipal securities; exercising the authority to directly |
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purchase such bonds, and/or provide credit enhancements for them, |
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would provide an opportunity to realize immediate, significant |
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contributions to our economic recovery; and |
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WHEREAS, Directly purchasing municipal securities at |
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appropriate interest rates, or providing credit enhancements that |
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allow cities access to traditional market interest rates for bonds, |
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would give the federal government the opportunity to be repaid, |
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with interest, the entire sum it furnishes through the partnership; |
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in addition, providing this relief in the municipal credit markets |
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would result in a significant tax reduction for local taxpayers in |
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the form of dramatically reduced publicly funded interest costs; |
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and |
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WHEREAS, Working together to construct an efficient |
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application of the authorization provided in H.R. 384, Section 402, |
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would greatly enhance our country's progress toward economic |
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recovery; now, therefore, be it |
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RESOLVED, That the House of Representatives of the 81st Texas |
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Legislature hereby respectfully urge U.S. Secretary of the Treasury |
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Timothy Geithner to implement a plan that will allow cities |
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affected by the credit crisis to access traditional market interest |
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rates for bonds; and, be it further |
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RESOLVED, That the chief clerk forward an official copy of |
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this resolution to the U.S. secretary of the treasury. |