Tampa Bay's Economy

[HARTride 2012]

Publix same-store sales dip in fourth quarter

By Mark Albright, Times Staff Writer
Posted: Mar 02, 2009 07:08 PM

People have to eat, but even some usually prosperous food retailers had an off fourth quarter. Publix Super Markets Inc. gained market share, thanks partly to its purchase of Albertsons in the quarter ended Dec. 27. Overall sales inched up 2.6 percent to $5.9 billion in the first quarter since Publix took over 49 Albertsons stores. But sales were down 0.9 percent in stores open more than a year. Net income dropped 20 percent to $249-million. Publix stock, which is privately traded, was appraised at $16.10 a share Sunday, down from $17.90 in the earlier quarter. Publix chief executive Ed Crenshaw blamed the economic "downturn." For the full year of 2008, Publix's sales rose 4 percent to $23.9 billion while earnings slipped to $1.1 billion, down from $1.2 billion.

[Last modified: Mar 02, 2009 07:08 PM]

http://www.tampabay.com/news/busines...icle980563.ece

And this brings me to my commentary. Though some grocers are indeed doing well, I see a huge problem for Publix. First off, their prices are simply too high in many cases for people to afford, especially their meats and seafood. Why would I even want to pay roughly $10.00 for a batch of shrimp? Or around $6 to $11 for pork (depending what I pork I get) at Publix, when I could get those items for much cheaper at Sweetbay or even Sam's Club. Even cookies tend to be more expensive at Publix; at Publix a pack of "name brand" cookies costs around $4.20. While at Sweetbay, those same cookies cost only around $3.60. See the difference right there? The ever-growing presence of WalMart could also shatter future hopes for Publix because again, Publix prices are too high. More and more people would rather save money and just do all their shopping at WalMart, because its basically a one-stop shop for everything they need. And with a WalMart still proposed for South Tampa, for example, this scenario alone could one day force Publix to retreat from some markets and maybe fail altogether. Remember, things are going to change big time once this recession blows through. Hopefully people will become more wise with thier money and avoid buying too many luxuries too fast. However, people are already thinking twice as to where they shop. Even for groceries and other necessities. In this recession, it seems that WalMart is still king....

My other reason why the economy could place additional pressure on Publix is because of their over saturation of the markets. With the recent purchase of 49 Albertsons stores, I'd like to think of Publix as an almost equivalent to Starbucks in terms of company growth. Starbucks was simply growing far too fast in such a short amount of time that its books could no longer keep up with number of locations it was operating. Some cafes, as many of you know, sat within blocks of each other. Let's, for example, take Westfield Brandon. They had one Starbucks location just across from New York & Co. for several years now. When the mall expanded in 2007, they added a second Starbucks. WTF?! Why have two Starbucks locations in the same mall?! I guess one location just wasn't enough for them huh? Well, this same scenario is seemingly playing out with Publix because you now have stores popping up just blocks away, or even right across the street in some cases, from an existing store! Even though this may bolster Publix's image now, it could very well prove to be disastrous later.

[HARTride 2012]

First up: Legislators to look at gambling and sales tax exemptions

By Mary Ellen Klas, Times/Herald Tallahassee Bureau
Posted: Mar 04, 2009 07:01 AM

TALLAHASSEE — The fate of revenue sources takes the spotlight today as legislators discuss Gov. Charlie Crist's gambling compact with the Seminole Tribe of Florida and continue the debate over whether to eliminate some sales tax exemptions.

In his State of the State speech Tuesday, Crist urged lawmakers to "quickly approve'' the deal, saying it will "preserve and create thousands of jobs for Floridians and will safeguard us against the expansion of gambling to every corner of our state."

He repeated the same warning he has offered before, saying that the federal government will give the tribe slot machines without revenue sharing. House and Senate committees will take up the issue today.

Meanwhile, the House Finance and Tax Committee will continue discussing whether to continue 51 sales tax exemptions its members identified as possibly needing review.


[Last modified: Mar 04, 2009 07:01 AM]

==============================

Gov. Charlie Crist's brief State of the State pitch: use federal stimulus

By Steve Bousquet, Times/Herald Tallahassee Bureau
In Print: Wednesday, March 4, 2009

TALLAHASSEE — In a short and perfunctory State of the State speech, Gov. Charlie Crist urged the Legislature on Tuesday to rally behind his plan to spend billions in federal stimulus money as "a bridge to better economic times" in Florida.

Crist called his address "a dose of reality," muting his usual cheerfulness to state the obvious: An epidemic of foreclosures and business failures and the highest unemployment rate in 17 years has ravaged state revenues. Crist used the deepening economic crisis to justify injecting $12.2 billion of federal money into the budget over three years.

"Some argue the politics of the federal stimulus plan," Crist said. "My friends, while our people worry, we cannot put politics over their needs — the needs of our students and teachers, the sick and the infirm, or those out of work."

In his third year in office, Crist is in the awkward spot of facing resistance within his own party in seeking to use stimulus money to jump-start the economy and get people back to work. Underscoring that point toward the end of his speech, Crist said: "We have to be willing to put solutions above who gets the credit."

Reviews were mixed. Some Republicans remain wary of the need to spend all the federal money and risk dramatically increasing the state's future budgetary obligations without knowing when the economy will improve.

"Taking all of it may leave us in a worse position two or three years from now," said Rep. Dean Cannon, R-Winter Park. "The most important thing we have to do right now is do no harm."

Crist's 19-minute speech, delivered in a subdued tone with the aid of a TelePrompTer, was at 6 p.m. to attract live local TV news coverage. It brought polite applause from its target audience: the 160 legislators in the House chamber who will spend the next nine weeks scrutinizing his spending plans.

Rep. Bill Galvano, R-Bradenton, said Crist spoke "in broad strokes" in making a political case — not a financial case — for spending stimulus money. "I don't think he quite addressed that," Galvano said, acknowledging "skepticism" about Crist's plan.

What worries some lawmakers is that Crist's $66.5 billion budget proposal for next year is grounded in revenue information from last fall that will soon be eclipsed by another downturn in revenues when state economists produce the next forecast March 13.

"This budget was rolled out on the high-water mark, knowing that the tide was going down quickly," said Sen. Dan Gelber, D-Miami Beach. "It is not tethered to reality."

Asked if Crist's speech was realistic, Sen. J.D. Alexander, R-Winter Haven, said: "We'll know next week," referring to the revenue forecast. But the Senate budget chief said Crist did offer "hope, direction and leadership that speaks to many Floridians."

The governor also pressed lawmakers to approve a gambling agreement with the Seminole Tribe of Florida and a tuition increase he described as a "reform." He cited plans to purchase 180,000 acres of Everglades land from U.S. Sugar Corp. and to diversify Florida's energy supply "that balances solar, wind and nuclear" — leaving out offshore oil drilling that he endorsed during last summer's presidential campaign.

Crist's third State of the State address was the shortest in modern times. (His two previous ones were 29 and 30 minutes.) Former Gov. Jeb Bush's final speech in 2006 ran 35 minutes, and former Gov. Lawton Chiles' finale lasted 30 minutes.

The speech lacked the passion of Crist's previous two talks and used stilted language, such as "high potential business sectors" and "implementing these dollars quickly." Crist's rosy job-creation statistics were straight from President Obama's administration, and he used an outdated figure of $25 billion to estimate the worth of property tax cut plans he has championed.

Such brevity meant Crist all but ignored his new batch of property tax-cut proposals while also skipping priorities of some fellow Republicans, such as a broad review of sales-tax exemptions.

"I love optimism," House Speaker Larry Cretul, R-Ocala, told reporters before Crist's speech. "But I also have been around long enough that sometimes, even optimism is not necessarily the solution to the problem."

Democrats strongly support Crist's eagerness to spend stimulus money.

"He set the right tone," said Chief Financial Officer Alex Sink, the only Democrat who serves with Crist on the Cabinet.

"Using these economic recovery funds will be a win for everyone — especially our children, the uninsured and Floridians worried about their jobs," said Rep. Geraldine Thompson, an Orlando Democrat who delivered her party's response to Crist's speech.

Crist also announced that Don Winstead, a deputy secretary of the Department of Children and Families, will advise him on spending Florida's share of stimulus money. Winstead will take a leave from his current post for up to a year to help Crist's staff.

Crist opened the speech by introducing the woman he married three months ago, his wife, Carole, who was seated in the front row of the visitors' gallery along with the governor's parents.

"I love you, honey," Crist said, looking up at his wife and ad-libbing a reference to his long bachelorhood: "I should have done that a long time ago."

Times/Herald staff writers Marc Caputo, Breanne Gilpatrick, Mary Ellen Klas and Alex Leary and St. Petersburg Times researcher Shirl Kennedy contributed to this report, which used information from the News Service of Florida. Steve Bousquet can be reached at bousquet@sptimes.com.

http://www.tampabay.com/news/politic...icle980982.ece

[HARTride 2012]

Obama's housing plan not helping Bay area
Thursday, March 5, 2009

MANATEE COUNTY (Bay News 9) -- President Barack Obama's mortgage relief plan does little for the Tampa Bay area because thousands of homes have lost too much value.

Homeowners who owe more than 5 percent above their home's appraised value are not eligible for assistance through the plan.

As an example, if a home is valued at $100,000, but the homeowners owe $105,000 or more on the home, they would not be eligible.

"Underwater" homes make up a third of Bay area homes, or more than 183,000 properties.

"I don't necessarily know if this is a good plan for Floridians," said Keller Williams Realty real estate agent Joanne Owens. "Because so many people are upside down more than 105 percent."

Bradenton resident Walter Hunt recently had his home appraised for far less than he'd hoped.

"The American dream is to have your home as your primary investment and hopefully gain some value," Hunt said. "You know, 5, 6, 7, 8 something a year but it's vanished in a heartbeat. It's just gone."

Homeowners like Mary Manu worry the worst is yet to come until the real estate market picks up steam.

"I'm scared to death," she said. "Because of the economy being so bad lately with the jobs (and) everyone getting laid off."

http://www.baynews9.com/content/36/2...ml?title=Obama

[HARTride 2012]

Unemployment rates expected to jump
Friday, March 6, 2009

(Bay News 9) -- The latest report on unemployment was released Friday, with a grim forecast for workers in the United States.

Economists predict 648,000 jobs were lost last month, making it the worst month for job losses since the recession started in December 2007.

February's job losses were also the highest the country had seen since October 1949.

Unemployment rates are expected to jump to 7.9 percent, up from 7.6 percent in January. If this happens the rate will be the highest it's been since January 1984.

The unemployment report comes after Wall Street hit its lowest levels in 12 years on Thursday. Stocks fell across the board, with General Motors dropping below $2 and Citigroup Inc. sinking below $1 a share at times.
Job fair in Tampa

Job seekers in the Bay area, take note: a company called Job News is hosting a job fair Friday in Tampa.

The employers signed up to table at the event range from hospitality to retail to financial firms.

The job fair will take place between 10 a.m. and 2 p.m. at the Quorum Hotel, located at 700 N. Westshore Blvd. in Tampa.

http://www.baynews9.com/content/36/2...pected+to+jump

[DShenise]

Florida unemployment rate surges to 8.6 percent
By Jeff Harrington, Times Staff Writer

Published Friday, March 6, 2009


--------------------------------------------------------------------------------
Florida's unemployment rate zoomed to 8.6 percent in January, representing 800,000 jobless out of a labor force of 9.3 million, according to figures released this morning.
The rate, the highest since September 1992, is up a full percentage point from the revised December rate.

In the Tampa Bay area, the unemployment rate reached 9.7 percent as the region has shed more than 42,000 jobs year over year. The one-month jumps in unemployment were sizeable in every bay area county:

• Pinellas posted an unemployment rate of 9.5 percent, up from 8.2 percent in December.

• Hillsborough's rate was 9.1 percent, up from 7.9 percent.

• Pasco's rate was 10.8 percent, up from 9.3 percent.

• Citrus' rate was 11.4 percent, up from 9.9 percent.

• Hernando's unemployment rate skyrocketed to 12.4 percent, up from 10.8 percent.

"Everyone in this industry is pretty much shell-shocked at this point," said Scott Brown, chief economist for Raymond James Financial in St. Petersburg. "Job losses have been so elevated that it's just a crisis of confidence."

One positive of the sharp rate of descent, Brown said, is it increases the odds the economy will see a sharp, V-shaped recovery once it does snap back. Earlier, there has been a widespread expectation that the economy would linger after bottoming-out and post a gradual, U-shaped recovery.

The state's analysis also revised figures from previous months, indicating when the state shed and in some cases added more jobs than previously thought. Year over year, Florida has lost 355,700 jobs, based on the revised estimates.

Typically, Florida relies on household surveys and employer surveys from the federal government to calculate the unemployment rate and job losses or gains. But once a year, it's required to revise its database using unemployment compensation tax records and other more detailed information.

National workforce statistics, which are running a month ahead of Florida's, also came out this morning. The Labor Department reported the country's unemployment rate jumped to a 25-year high of 8.1 percent in February with employers cutting 651,000 jobs.

The government also revised its figures for previous months indicating deeper payroll reductions than thought. The economy lost 681,000 jobs in December and another 655,000 in January, it reported.

Jeff Harrington may be reached at harrington@sptimes.com or (727) 893-8242.

http://www.tampabay.com/news/business/article981538.ece

And my mother still wonders why I moved two years ago. When one sees an oncoming train, its best to get the hell off the tracks. I wonder what the unemployment rate for architectural and interior designers, gotta be higher.

[HARTride 2012]

A closer look at employment data reveals: It's worse than we thought

By Jeff Harrington, Times Staff Writer
In Print: Saturday, March 7, 2009

Number crunchers tracking the state's unemployment cautioned that the news could be grim after an annual revision of years worth of data.

Boy, were they right.

Turns out the recession gripping Florida has been even deeper than reported, with monthly estimates overlooking thousands of lost jobs in construction and retail. The upshot: Economists now think the state will lag the rest of the country in recovery, shoving back expectations of a Florida turnaround into 2010.

Companies are shedding workers at a pace that rivals the 1974-75 recession, slashing 355,700 jobs last year based on the revisions. And topping it off, Florida's unemployment rate jumped a full percentage point in January to 8.6 percent, a 16-year high, the state said Friday. It's unlikely to stop there.

"In the near term, there's not a lot to prevent a double-digit unemployment rate," said Sean Snaith, director of the University of Central Florida's Institute for Economic Competitiveness.

The state used tax records and other information to more accurately reflect the work force, going back 18 years in some cases. But most striking were changes to more recent months, revealing the state had overestimated the size of Florida's work force as of December by more than 200,000.

Snaith noted that the state revised downward to reflect there were 10,000 more lost jobs in retail and 12,000 in construction. All told, the construction industry lost 100,700 jobs in a year.

"The severity of the recession and how it's affected Florida's economy wasn't being accurately captured by that earlier data," Snaith said. "Unfortunately, it's a little bit deeper and little bit darker than we previously thought."

The Florida Economic Estimating Conference this week predicted that "normal economic growth" won't return until the end of 2010.

University of Florida economist David Denslow said the next report could show Florida's unemployment reached 9 percent in February. Both the jump in unemployment and the stock market plummet are crimping personal spending and postponing any semblance of recovery, he said.

"Florida is still reeling from what's going on nationally more than anything else, and the national numbers are just horrible," added Scott Brown, chief economist with Raymond James Financial in St. Petersburg. "We've lost 4.4 million jobs since the recession began and more than half of that was just in the last four months alone."

The Labor Department on Friday reported the country's unemployment rate jumped to a 25-year high of 8.1 percent in February, with employers cutting 651,000 jobs. If part-time, discouraged workers and others are factored in, the unemployment rate would have been 14.8 percent in February.

In three weeks, Florida comes out with its own February unemployment report. But its January numbers were bad enough, particularly close to home.

In the Tampa Bay area, nearly one in 10 are out of work. All the regional counties showed leaps in unemployment rates, but Hernando's was the most pronounced, jumping from 10.8 percent in December to 12.4 percent in January.

Some of those looking for relief converged Friday at a job fair at the Quorum Hotel in Tampa.

Only two hours into the four-hour fair, close to 700 job seekers had passed through the hotel's Royal Palm Ballroom, many in their finest clothes as they parceled out resumes.

Sarah Narine was disappointed at the slim pickings. In May, she'll lose her accounting and administrative job at Freedom Online, a wireless Internet service in Tampa.

What she saw Friday — including the heavy presence of Avon scouting new sales people — offered few prospects in her field. At least it was better than a Tampa job fair last month that had only five booths.

"I actually expected actual companies that want to hire," Narine said before she lined up at the Verizon Wireless table for a chance at three sales jobs.

One of two debt collection exhibitors, Tyler & Morgan Inc., specializes in persuading people to pay their credit card, personal loan and auto loan debt.

"We have 20 collectors and can fit at least 77 more people at our place on Hillsborough Avenue," manager Aurora Rivera said.

Rivera shook so many hands she had a quart-sized bottle of goopy yellow hand sanitizer at the ready.

Times staff writer James Thorner contributed to this report. Jeff Harrington can be reached at jharrington@sptimes.com or (727) 893-8242

By the numbers

The jobless rate in the Tampa Bay area has increased since December 2008.

Hernando

12.4%

up from 10.8 percent

Citrus

11.4%

up from 9.9 percent

Pasco

10.8%

up from 9.3 percent

Pinellas

9.5%

up from 8.2 percent

Hillsborough

9.1%

up from 7.9 percent

Tampa Bay

9.7%

up from 8.4 percent

Unemployment Rates (in percent)

JAN 2009 DEC 2008 JAN 2008

Pinellas County 9.5 8.2 5.1

Hillsborough County 9.1 7.9 5.0

Pasco County 10.8 9.3 6.1

Hernando County 12.4 10.8 7.3

Citrus County 11.4 9.9 6.8

TAMPA BAY AREA 9.7 8.4 5.3

FLORIDA 8.6 7.6 5.0

FEB 2009 JAN 2009

U.S. 8.1 7.6

Sources: U.S. Bureau of Labor Statistics; Florida Agency for Workforce Innovation. U.S. and Florida figures are seasonally adjusted; county and metro area data are not.



fast facts

Search jobs online

In addition to job fairs, the state is steering job seekers to its online job bank — employflorida.com — and nearly 90 one-stop career centers across the state, listed at floridajobs.org.

[Last modified: Mar 07, 2009 12:27 AM]

http://www.tampabay.com/news/business/article981956.ece

[I-275westcoastfl]

Wow look at those numbers...

[HARTride 2012]

Yep, sadly its gonna get way worse before it gets any better.

[HARTride 2012]

Florida 'Stimulus czar' named to ride herd over funds
Monday, March 23, 2009

TALLAHASSEE, Fla. (AP) -- Gov. Charlie Crist drew some chuckles when he introduced Don Winstead as Florida's "stimulus czar" during a news conference.

"It's not funny," Crist protested in mock anger.

Regardless of what he's called, those familiar with Winstead's three-decade career from caseworker to administrator in state and federal health and social service agencies say he's the perfect choice for riding herd over $13.4 billion in federal stimulus money that Florida expects to receive over three budget years.

"He has worked with the complexity of federal revenue sharing in the past, so I think he's a great choice," said Senate President Jeff Atwater, R-North Palm Beach.

Jack Levine, a longtime children's advocate who recently added the elderly to his lobbying interests, agreed.

"Winstead is a pure and simple professional," Levine said. "He knows his numbers and he knows to stay out of the political crossfire."

Winstead, 61, is on loan to the governor's office from the Department of Children and Families, where he's paid $134,451 annually as deputy secretary, second in command to Secretary George Sheldon.

He has worked in Democratic as well as Republican administrations and has had a wide range of management responsibilities, including budgeting and lobbying the Legislature for his agency.

Winstead stressed that Crist remains the ultimate decision-maker on stimulus matters.

My working title is special adviser to the governor," Winstead said in an interview. "My hope is I will give special advice."

Winstead is best known for serving as the state's welfare reform administrator from 1995 through 2001 under Govs. Lawton Chiles, a Democrat, and Jeb Bush, a Republican. He was in charge of implementing dramatic changes that shrank Florida's welfare rolls by nearly two-thirds. The new system requires recipients to work in exchange for aid and provides jobs and job training for those who needed it.

Winstead then served as deputy assistant secretary for human services policy with the federal Department of Health and Human Services before returning to the state agency in 2005.

"He was known in the halls of Congress as someone who had worked extremely well at bringing forth welfare reform," said Eric Eikenberg, Crist's chief of staff and previously a top aide to former U.S. Rep. Clay Shaw, a Fort Lauderdale Republican. "There wasn't a better person to choose to advise the governor."

Not everyone, though, has been pleased since Crist announced Winstead's appointment in his March 3 State of the State Address.

"I don't know what the governor's stimulus czar is doing because he hasn't met with us," said Florida Senate Democratic Leader Al Lawson of Tallahassee. "There's not much communication going on."

Lawson also accused Crist's administration of dragging its feet on getting the stimulus money flowing to the state's economy and complained Florida lagged behind other states in setting up a Web site to track stimulus spending.

A Republican who bucked his party's leaders to embrace Democratic President Barack Obama's stimulus program, Crist was taken aback by the criticism.

"I think we're doing very well," Crist said. "I'm enormously proud of the work Don Winstead is doing, and I'll leave it at that."

Since his appointment, Winstead has testified before legislative committees, visited Washington to meet with Vice President Joe Biden and other federal officials, briefed Crist and state agency heads and helped develop the stimulus Web site - www.FlaRecovery.com - that's now up and running. He's also met with officials of the Florida League of Cities and Florida Association of Counties and asked them to designate representatives to be a part of his team.

Winstead is on loan for an indefinite period.

"Whether it's three or six months, right now is the critical time," Eikenberg said. "We'll evaluate it as it goes on."

Winstead is working closely with Crist's budget director, Jerry McDaniel, whose Office of Policy and Budget is providing him with staffing assistance. The Agency for Health Care Administration, which oversees the state-federal Medicaid program in Florida, also is contributing staffing and Winstead has free reign to borrow people from other state agencies, Eikenberg said.

Most of the state's stimulus cash will be spent during the current and next two budget years on health care for the poor through the Medicaid program, education and infrastructure including road building.

Winstead said part of his job is to serve as "an opportunity watchdog."

Not all the stimulus money will flow automatically to state and local governments. Winstead said he'll be on the lookout for pools of stimulus money for which applications are required or that can be sought by military bases or other federal activities in the state.

His new task is similar in some ways to implementing the welfare changes. Winstead said a key factor in accomplishing that job was building a consensus.

"There was a common sense of how we move forward together," Winstead said. "If we develop that consensus, which I think we will, then even though this task is probably a little more complex, and the dollars are a little bit larger, the same basic implementation challenges are going to be there."

The key to consensus is providing solid information to decision-makers in ways they can easily access and understand, Winstead said.

He compared that part of his job to being an air traffic controller.

"It is important to make sure we know what's coming and that the people that need information have that information," Winstead said. "I'll be a synthesizer of information and a disseminator of information."


Copyright 2009 Associated Press. All right reserved. This material may not be published, broadcast, rewritten, or redistributed

http://www.baynews9.com/content/36/2...erd+over+funds

[HARTride 2012]

.....help fund renovations for Tampa City Hall.

Stimulus money will help overhaul City Hall

By Cristina Silva, Times Staff Writer
In Print: Friday, March 27, 2009

TAMPA — A solar-powered county courthouse. Energy-efficient street lights and air conditioners.

Uncle Sam has opened his wallet, and the Bay area is ready to spend.

The White House announced $23.9 million in stimulus money earmarked for energy efficiency and conservation grants for the Tampa Bay area Thursday.

Hillsborough County was promised the largest chunk of cash, followed by Pasco and Pinellas counties.

Tampa stands to receive $3.7 million, and St. Petersburg could get $2.4 million.

Thom Snelling, who oversees the Tampa's green initiatives, said he was doing cartwheels in the hallway when he learned Thursday of the appropriation.

"I'm thrilled to death," he said. "We have a heck of a wish list, and quite a bit of it has to do with energy savings."

Many of those projects would go unfunded without the stimulus money, Snelling said. Among them: replacement of 30-year-old heating and cooling systems at police headquarters and City Hall. Both projects could begin this summer and would create 50 jobs, according to city documents.

Tampa public works director Irvin Lee said the money could pay for replacing incandescent traffic lights with LED signals that use up to 80 percent less energy.

"We've only got about a quarter of our intersections changed out right now. I'd love to jack that up," Lee said. "LED traffic signal conversion has a relatively quick payback."

Hillsborough County could use the money to install solar panels on top of the old courthouse, now under renovation. County energy manager Randy Klindworth said the project would cost about $2.1 million and be capable of providing about half of the building's electricity.

A portion of the money could also be used to upgrade lighting systems within some of the more than 300 government buildings across the county.

"These are easy projects that could be done quickly," Klindworth said.

Hillsborough County is in talks with operators of the county-owned St. Pete Times Forum about ways to make the venue more energy efficient, county spokeswoman Edith Stewart said

The county's Economic Stimulus Task Force will meet today and the grant may be a topic of conversation.

Mike Connors, St. Petersburg's internal services administrator, called the funding significant. He quickly rattled off a list of potential projects, including new street lights and solar panels for government buildings.

Other governments have yet to determine how they might spend the money.

"What we're going to do is we're going to look at the projects that might be eligible … using federal criteria," said Elithia Stanfield, assistant Pinellas County administrator. "Then we will apply to use the money."

The grants are funded by the American Recovery and Reinvestment Act. More than $3.2 billion in the stimulus plan was set aside for energy projects, including $168,643,400 for Florida.

To receive the money, government must submits grants for projects that improve energy efficiency and reduce energy use and fossil fuel emissions.

Times staff writers Bill Varian and David DeCamp contributed to this report. Cristina Silva can be reached at csilva@sptimes.com or (727) 893-8846.

Stimulus fund breakdown

Funding is based on population and energy use.

Region Funds
Tampa $3.7 million
St. Petersburg $2.4 million
Clearwater $1.1 million
Largo $719,200
Pinellas Park $215,000
Dunedin $149,500
Hillsborough County $7.7 million
Pasco County $4.2 million
Pinellas County $3.8 million




[Last modified: Mar 27, 2009 12:19 AM]

http://www.tampabay.com/news/localgo...icle987423.ece

=============================

.....and fund other energy projects.....

Federal stimulus money to pay for Tampa Bay energy projects

By Cristina Silva and Janet Zink, Times Staff Writers
In Print: Friday, March 27, 2009

ST. PETERSBURG — A solar-powered City Hall. Energy-efficient street lights. Electric cars.

Uncle Sam has opened his wallet, and Tampa Bay area governments are ready to spend.

The White House announced $23.9 million in stimulus dollars earmarked for energy efficiency and conservation grants for the region Thursday.

Hillsborough County was promised the largest chunk of cash, followed by Pasco and Pinellas.

St. Petersburg could get $2.3 million, Tampa stands to receive $3.7 million and Clearwater just over $1 million.

"That is significant," said Mike Connors, St. Petersburg's internal services administrator, who quickly rattled off a list of potential projects, including new street lights and solar panels for government buildings.

Other governments have yet to determine how they will spend the money.

"We're going to look at the projects that might be eligible … using federal criteria," said Elithia Stanfield, assistant Pinellas County administrator. "Then we will apply to use the money."

The federal American Recovery and Reinvestment Act set aside more than $3.2 billion for energy projects, including more than $168 million for Florida.

To receive the money, governments must request grants for projects that improve energy efficiency and reduce energy use and fossil fuel emissions.

The list of eligible projects ranges from renewable energy installations on government buildings to energy-efficient traffic signals and street lights to green vehicles.

Grant recipients must report the number of jobs created or retained, energy saved, renewable energy capacity installed, greenhouse gas emissions reduced and funds leveraged.

"These investments will save taxpayer dollars and create jobs in communities around the country," Vice President Joe Biden said in a statement. "Local leaders will have the flexibility in how they put these resources to work — but we will hold them accountable for making the investments quickly and wisely to spur the local economy and cut energy use."

In Tampa, Thom Snelling, who oversees the city's green initiatives, said he was doing cartwheels in the hallway when he learned of the stimulus program.

"I'm thrilled to death," he said. "We have a heck of a wish list and quite a bit of it has to do with energy savings."

Many of those projects would go unfunded without the stimulus money, Snelling said. Among them: Replacement of 30-year-old heating and cooling systems at police headquarters and City Hall. Both projects could begin this summer and would create a total of 50 jobs, according to city documents.

Meanwhile, St. Petersburg officials discussed whether to apply for grants from several other pots of stimulus money during a City Council meeting Thursday.

Police Chief Chuck Harmon said he will seek federal dollars to hire 10 officers.

Harmon said he will apply for $2.1 million through a Justice Department grant. The deadline is April 14.

The grant requires the city to retain its new hires for at least one year beyond the conclusion of the three-year grant period. That will cost $710,000. City officials said they will likely set aside some money in each annual budget preceding the fourth year to comply with the grant, even if the economy does not rebound.

Mayor Rick Baker's staff said the city also will seek stimulus dollars to help cover community development projects, social services expenses and restore native plants to Boyd Hill Nature Preserve, Maximo Park and other public lands.

St. Petersburg launched a recovery Web site last week to track all the available funds the city may apply for, and ultimately, how the money is spent.

Fast facts

Stimulus funds

The Tampa Bay area received $23.9-million for energy efficiency and conservation projects. Funding is based on population and energy use.

Here's how it breaks down:

Clearwater: $1,075,400

Dunedin: $149,500

Largo: $719,200

Pinellas Park: $215,000

St. Petersburg: $2,380,400

Tampa: $3,712,100

Hillsborough County: $7,665,200

Pasco County: $4,216,900

Pinellas County: $3,791,300

[Last modified: Mar 27, 2009 12:10 AM]

http://www.tampabay.com/news/localgo...icle987413.ece

[HARTride 2012]

Tampa Bay could see summer surge in foreclosures

By James Thorner, Times Staff Writer
In Print: Friday, March 27, 2009

Think of home foreclosures as a rat moving through the gut of a boa constrictor.

The bulge of foreclosures inches its way through the courts, but at a certain point is absorbed into the larger housing market, adding fat that must be worked off.

In the Tampa Bay area, despite slight month-to-month declines in foreclosure cases, many have detected just such a bulge. And the real estate market is supposed to absorb it right around June.

This time we're not talking about homeowners defaulting on adjustable-rate mortgages resetting higher this spring and summer. Other factors are feeding our local bulge:

A voluntary foreclosure moratorium proposed by Gov. Charlie Crist during the fall applied the brakes to thousands of cases. That moratorium ended in February. Banks have been loath to load up their books with too many confiscated houses at once. Bottlenecks clog the courts.

Defense attorneys have grown more skilled at dragging out foreclosures for a year or more. The latest delaying tactic is demanding paperwork of banks to prove what investors in what countries bought the mortgage-backed securities that funded the loans.

Realtors in Tampa and St. Petersburg report that bank-owned properties for sale have subsided a bit from their high-water marks. One agent who markets repossessed homes said her listings dropped from 100 to 73 recently. But she expects a flood as the court backlog unjams in the next few months.

What does it mean for most of us? More cheaply priced foreclosures on the market postpones the housing recovery and drives down prices. Prices won't stabilize until 2010 — if we're lucky.

A word of caution: Talking heads last year predicted a tsunami of foreclosure filings in June 2008. I can't speak for the rest of the country, but that tidal wave never hit our shores.

But if you plan to sell your house in June, you'd better brace yourself for a lot of bargain-priced competition.

James Thorner can be reached at jthorner@sptimes.com or (813) 226-3313.


[Last modified: Mar 26, 2009 10:22 PM]

http://www.tampabay.com/news/busines...icle987420.ece

[HARTride 2012]

State senators release budget proposal
Friday, March 27, 2009

TALLAHASSEE (Bay News 9) -- State senators have released their budget proposals for the 2009-2010 fiscal year.

Florida is facing $6 billion budget hole, but the state's share of the federal stimulus package would take care of $3.5 billion.

To make up the rest senators are considering raising the sales tax by a penny, which would raise $2.8 billion. Republican leaders also want to hike the cigarette tax by $1 a pack, which would raise between $300 and $800 million.

They also want to expand gambling, not just at Seminole Indian Tribe casinos, but statewide, which could raise $1 billion.
The House

The state house is currently talking about holding the line on taxes, but enacting bigger budget cuts, including cutting the education budget by $500 million.

The House plans to finalize its budget proposal next week, but because the chambers appear to be far apart with their numbers, it may take a special session to reach a final budget agreement.
The governor

State revenue is down for the third year in a row, but Gov. Charlie Crist said he hopes to avoid tax hikes.

"If there's a way that we can get to a balance without having to raise new revenues, that's what we're striving for," Crist said.

http://www.baynews9.com/content/36/2...dget+proposal+

[HARTride 2012]

Hillsborough Clerk of Courts Pat Frank announces furloughs to cut costs

By Bill Varian, Times Staff Writer
In Print: Tuesday, March 31, 2009

TAMPA — Employees in the court clerk's office learned Monday they will be joining the ranks of workers facing furloughs.

Hillsborough Clerk of the Circuit Court Pat Frank told her staff that declining court revenue is forcing her to order three furlough days. And she warned employees of likely layoffs and pay reductions next year.

Payments to deferred compensation plans have also been reduced.

Frank said in an Intranet video to employees called "Frank Talk" that courts across the state are experiencing a 12 percent decline in revenue. Hillsborough is down 7.5 percent for the year.

That translates into a $2.6 million projected deficit by the end of the year, and it could get worse yet, Franks said.

"We have scrutinized our budget over and over, and made the least painful cuts we could," Frank said in the video. "However, we came to the realization that the only way we can balance our budget at this time without laying off any employees is to institute furlough days."

The public won't notice. Frank has timed the furlough days with government holidays when the office will be closed anyway. But employees won't be paid for those days off.

The dates are: May 25 (Memorial Day); July 3 (the day off coinciding with Independence Day; and Sept. 7 (Labor Day).

The clerk's office employs about 910 employees and has a roughly $52 million budget to run the court system, maintain county records and serve as the county's finance department.

It tacks fees onto various services and fines to pay for its operations. But those fees are then turned over to the state, which redistributes the money and keeps some of it to pay for other services.

Collections of some of the court assessments are down, Frank said. But she expressed frustration that the cutbacks being forced by the state don't seem to be based on any study, but are just arbitrary.

"It's very much a conundrum the way the decisions are being made," Frank said in an interview. "There's no rhyme or reason to it."

Frank said she is sensitive to hitting her employees in the wallets when some may already be struggling to pay bills. She said all employees will take a pay cut, but that reductions will be more pronounced for those with bigger salaries.

Furloughs and pay reductions will have to be approved the county's Civil Service agency.

Bill Varian can be reached at varian@sptimes.com or (813) 226-3387.


[Last modified: Mar 30, 2009 10:51 PM]

http://www.tampabay.com/news/localgo...icle988348.ece

[HARTride 2012]

Commissioners Should Take Pay Cut Also, Beckner Says

By MIKE SALINERO

msalinero@tampatrib.com

Published: April 1, 2009

Hillsborough County Commissioner Kevin Beckner suggested Tuesday that commissioners look at cutting their own salaries or benefits as a symbolic gesture to show empathy for county employees facing layoffs.

"I know it won't solve the budget crisis," Beckner said. "But it's about everybody doing their part. We need to tighten our belts before we ask somebody to tighten theirs."
Beckner urged commissioners to consider at least a 10 percent pay cut. They now make roughly $100,000 a year, but they can only cut their pay by 25 percent, according to state law. Beckner, a first-term commissioner and financial adviser, said board members could also look at cutting other benefits such as their car allowances.
Beckner made the comment at the end of a three-hour budget workshop. It was the first meeting of commissioners since county officials announced they are considering cutting the county work force by as many as 1,000 positions in the next two years.

Commissioners spent nearly an hour discussing whether County Administrator Pat Bean has sole power in preparing the county budget or whether she needs help from Jim Barnes, the commission's internal performance auditor.

Barnes and his aides made a long presentation on strategic planning and measuring public services for performance. He said the county has no strategic plan for budgeting and does not have an accurate system of measuring outcomes.

After the presentation, Commissioner Jim Norman accused Barnes and Commissioner Al Higginbotham of violating the county charter by trying to shift budget authority to Barnes.

"Board members, if you want to change the charter, you need to take it to the people," Norman said. "This is a veiled attempt to change the charter."

Higginbotham countered that he was tired of being locked out of the budget process by Bean and Budget Director Eric Johnson. Higginbotham said the charter, which is rather like the county's constitution, allows the internal performance auditor to act as a budget analyst.

Higginbotham said Norman's argument about the charter was "a dodge to take everybody's eye off the ball."

"And when we do that, taxpayers lose," Higginbotham said.

Higginbotham said he was not trying to take away Bean's budget authority.

The next budget workshop will be on April 8.

Reporter Mike Salinero can be reached at (813) 259-8303.

http://www2.tbo.com/content/2009/apr...r-/news-metro/

[HARTride 2012]

St. Petersburg considers 4-day work week for some employees
By Luis Perez, Times Staff Writer
In Print: Wednesday, April 1, 2009

ST. PETERSBURG — The city needs to save money, and it is looking at its employees to help fill the budget gap.

In recent days, city administrators have been meeting to discuss shortening the work week of some full-time employees, as well as mandating unpaid furloughs.

These are among many options being discussed to help plug a $15 million to $20 million budget hole created by reduced property tax collections. The four-day work week, in which employees would work slightly longer hours and keep their full salaries, is a gentler option that offers the most potential for savings over time. Furloughs, which result in smaller annual paychecks, are a more aggressive measure.

"The budget-cut ideas that have been submitted include just about everything imaginable," said internal services administrator Mike Connors. Working employees for four 10-hour days a week would allow the city to shut down some facilities one day, saving operating costs.

Salary cuts are also on the table. Among other budget-trimming items: cutting back on travel and training, memberships and new equipment.

For both government and private organizations, considering a shortened work week as a cost-saving measure has become increasingly common. It is already being done in Spanish Fork City, Utah. Last year, researchers at Brigham Young University found that city employees there reported increased job satisfaction and better relations with the public.

Furloughs are also increasingly common. Just this week, the Hillsborough County Clerk of the Circuit Court ordered its employees to take three furlough days.

Of 3,300 St. Petersburg city employees, about 1,350 full-time workers, from environmental and finance to public works employees, are being considered for the shorter work week or unpaid furloughs. Police, fire and other emergency agencies, which by law must be staffed around the clock, are not being considered.

Some full-time city employees, such as stormwater, pavement and traffic operations, wastewater collection and sanitation, already work a four-day week, but those departments never shut down, said Gary Cornwell, the city's human resources director.

Any plan affecting employee workload would have to be hammered out with the Florida Public Services Union, a local branch of the Service Employees International Union, which represents most city workers.

A spokesman for the union could not be reached for comment. But Kevin Shaughnessy, a labor lawyer with the firm Baker Hostetler in Orlando, said the city would need to implement the changes carefully to avoid harming employee morale or incurring gender- or race-based lawsuits.

Researcher Will Gorham contributed to this report. Luis Perez can be reached at 727-892-2271 or lperez@sptimes.com.



[Last modified: Mar 31, 2009 06:22 PM]

http://www.tampabay.com/news/localgo...icle988586.ece

[HARTride 2012]

Wednesday, April 1, 2009, 5:32pm EDT
Tampa Bay area schools receive $72 million in Recovery Act fundsTampa Bay Business Journal

Hillsborough, Pinellas and Manatee schools will receive a total of $72 million in Recovery Act money released today.

Title 1 schools and those offering services under the Individuals with Disabilities Education Act are targeted for the money, U.S. Rep. Kathy Castor, D-Tampa, said in a release.

Title 1 schools have at least 40 percent of their students from low-income families.

Hillsborough schools are receiving $17.5 million for Title 1 education and $22 million for IDEA.

In Pinellas, Title 1 schools receive $10.5 million. IDEA schools receive $14 million.

Manatee is receiving $3 million for Title 1 and $5 million for IDEA schools.

Money released now is the first half of direct funding for Title 1 and IDEA schools under the Recover Act. The remainder will be released this fall, the release said.

Tampa Bay area schools also are to receive $51.7 million to update schools, $950,000 for education technology grants and $4.8 million for Head Start programs.

The stimulus money is expected to keep teachers and school support staffers employed and create jobs at private businesses hired to provide services and materials, Castor said.

http://tampabay.bizjournals.com/tamp...0/daily44.html

[HARTride 2012]

Leaders look at higher taxes, fees to plug budget hole
Thursday, April 2, 2009
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TALLAHASSEE (Bay News 9) -- State lawmakers are looking at a number of ways to cover the gaping budget hole.

One of the more commonly proposed solutions? Increased taxes and user fees.

Some of the proposed fees include:

- Increasing the cost of an accident report from $2 to $10
- Requiring an annual license to fish off a pier or beach for $15.50
- An additional rental car feel of $2 per day
- Increasing the fees on first driver's licenses

According to Bay News 9's partner paper, the St. Petersburg Times, lawmakers said the various plans could raise anywhere from $630 million to $970 million. The extra revenue would be used along with reduction in government services to fill the $3 billion budget deficit.

In addition, the plan for a state tobacco tax - on top of the recently implemented federal tobacco tax - is making its way through the Capitol. If both chambers pass the tax, the money raised, which some estimate could be as much as $1 billion annually, would be put toward health care needs.

http://www.baynews9.com/content/36/2...ug+budget+hole

[HARTride 2012]

Tampa Mayor Pam Iorio calls for pay freeze

By Richard Danielson, Times Staff Writer
In Print: Tuesday, April 7, 2009

TAMPA — Mayor Pam Iorio is asking the city's police, fire and general employee unions to forgo all pay raises next year.

And if she can't get that freeze, she said the city could have to look at cutting 240 positions.

"We are trying to produce a budget that doesn't adversely affect the citizens we serve," Iorio told City Council members Monday.

The city faced similar budget constraints the last two years, she said, but next year's financial outlook is even more grim.

As a result, she said, the city needs its 4,660 employees to sacrifice.

None of the union presidents returned calls for comment Monday, though Iorio said she had a "very cordial" meeting last week with all three.

"They said they would consider it," she said. "They were not negative. I think they recognize the position that we're in."

After last week's meeting, the president of the city's general employees union said "we can work with that" if Iorio's proposal means no employees would lose their jobs. The presidents of the fire and police unions made no commitments other than to consider Iorio's proposal.

The mayor said she needs the pay freeze to help close what otherwise would be a $52.2 million deficit in the city's 2009-10 fiscal year budget. That's bigger than the city's last two deficits put together.

That gap looms because property tax and sales tax revenues are each expected to drop at least 15 percent next year. Revenue from the state, city permits and the convention center also are expected to fall.

Meanwhile, the investments that make up the city's pension funds for general employees, fire and police have performed poorly. As a result, the city is required by law to put tens of millions of dollars more into the funds to ensure they can cover their obligations to retirees.

Iorio said the pay freeze would cover every city employee, including herself and her top administrators. City officials also plan to eliminate 73 vacant civilian positions, reduce spending on capital projects, cut overtime and use reserves to help close the budget gap.

But that would leave the reserves, or fund balances, at slightly less than the 20 percent of the budget that city officials deem prudent.

Since 2007, City Hall has eliminated 498 jobs, about 10 percent of its payroll. That would make finding additional jobs to cut difficult, since Iorio said police officers and firefighters would not be cut.

Iorio isn't the only top administrator in Hillsborough struggling to reduce costs. County Administrator Pat Bean recently said she might have to look at cutting 1,000 county jobs to close a $110 million budget deficit.

Iorio did not ask City Council members for an opinion on the pay freeze Monday because council members would have to arbitrate any impasse resulting from a failure to come to terms in upcoming contract negotiations.

Council member Mary Mulhern suggested she hopes it doesn't come to that, and almost any step, including using furloughs, would be better than laying off more employees.

Richard Danielson can be reached at Danielson@sptimes.com or (813) 269-5311.

By the numbers

$52.2m Tampa's estimated budget shortfall

$110M Hillsborough County's estimated budget shortfall.

[Last modified: Apr 06, 2009 10:51 PM]

http://www.tampabay.com/news/localgo...icle990193.ece

[HARTride 2012]

Hillsborough commissioners agree to furlough themselves

By Bill Varian, Times Staff Writer
In Print: Thursday, April 9, 2009

TAMPA — Hillsborough commissioners have agreed to accept the same hit in the paycheck that they impose on other county employees this year — no more, no less.

That could mean a freeze to commissioners $91,844 salaries, increased insurance premiums and forced, unpaid days off.

But the unanimous vote Wednesday fell far short of the 10 percent pay cut new Commissioner Kevin Beckner proposed as a way to send a message that the board was taking the sagging economy seriously. He also had proposed forgoing commissioners' $550 monthly car allowance.

Beckner responded a bit like the kid who asked for a solid chocolate bunny in his Easter basket, and got a hollow one.

"I think it's a good first step," he said. "I would have liked to see more. But I think it's a start."

Beckner had floated the notion of commissioners taking a pay cut as a symbolic gesture about a week ago. He said the amounts he suggested totaled about a 16 percent hit, equating roughly to how much the board may have to cut county spending in the next two years due to falling property tax revenue.

But when the topic came up for discussion during a workshop Wednesday, other commissioners quickly steered the debate in a different direction.

Commissioner Mark Sharpe got County Administrator Pat Bean to acknowledge she is expecting to recommend furloughs for rank-and-file employees next year. She said employees have told her they would prefer them to pay cuts and to lessen the need for layoffs.

Sharpe said commissioners should agree to accept furloughs as well. It makes the cut to commissioners' salaries less arbitrary, he said.

"I think the simple formula is a shared formula," Sharpe said. "It's a symbolic cut but it's substantive."

Other commissioners were quick to applaud Sharpe's idea.

"I was going to the same place," said Commissioner Al Higginbotham, whose own proposal to freeze board salaries two years ago was dismissed by other board members. "Whatever burden county employees have, we're not exempt from that."

Commissioner Kevin White noted that one of the reasons the economy is ailing is that corporate chief executives took care of themselves without regard to people below them.

"Leadership comes from the top," he said. "I think we owe it to the taxpayers and the employees of Hillsborough County."

Bean has previously said she may have to cut as many as 1,000 county jobs to plug a projected $110 million drop in property tax collections due to falling values.

Each furlough day for county employees equates to about $1.1 million in savings. Bean would not say how many furlough days she plans to recommend.

Bill Varian can be reached at varian@sptimes.com or (813) 226-3387.


[Last modified: Apr 09, 2009 12:01 AM]

http://www.tampabay.com/news/localgo...icle990669.ece

[HARTride 2012]

GM: The good, the bad and the ugly
The way to save General Motors could very well mean splitting the company into two -- even though that could cause future headaches.

By Chris Isidore, CNNMoney.com senior writer
Last Updated: April 10, 2009: 8:45 AM ET

NEW YORK (CNNMoney.com) -- If General Motors goes into bankruptcy, many of its most iconic brands, such as Buick and Pontiac, might not survive.

But if that is the course GM (GM, Fortune 500) follows, some of its healthier brands, such as Chevrolet and Cadillac, could find themselves reborn as part of a smaller, much healthier company relatively quickly.

The Obama administration has given the battered automaker until June 1 to come up with a new turnaround plan that cuts significantly deeper than the previous restructuring proposal. That earlier plan, unveiled in February, called for the company to likely shed its Saab, Hummer and Saturn brands, but to keep Buick, GMC and at least part of the Pontiac product line.

The growing assumption in the industry is that if GM is forced into bankruptcy, the company will be split into a so-called "good GM" and "bad GM."

The good brands -- such as Chevy and Cadillac, and its stronger overseas operations - would be sold quickly to a new company set up with government financing, and presumably led by GM's current management team.

That new leaner, healthier GM would be able to go forward without the burden of much of the debts and problems that now weigh down the current company.

The bad parts of GM, including Saturn, Saab and Hummer, unprofitable plants and much of the company's obligations, would be left behind in bankruptcy court, likely slated for a slow, painful liquidation.
0:00 /02:57GM's electric 2-wheeler

Experts say this is the only way that there could be a so-called quick bankruptcy process for a company as large and complicated as GM, which is what the Obama administration has said it would like to achieve if GM does file for bankruptcy.

The surviving portions of the company could be out of bankruptcy rather quickly, while the bankruptcy process continues for the remainder of the company. That would be similar to the bankruptcy filing of Lehman Brothers, in which the surviving operations were sold to Barclays (BCS) within days of the Wall Street firm's bankruptcy filing in September.

"In cases like this, the motion to have a sale is one of the first motions you would file in bankruptcy," said Heidi Sorvino, head of the bankruptcy practice in the New York office of law firm Smith, Gambrell & Russell.

But Sorvino said that even this process may not be quick and clean.

It is possible that if only the healthy portions of GM were being spun-off, it could attract other bidders who would be wiling and able to pay a higher price for them, such as a private equity firm or even another automaker. And the bankruptcy judge would likely be bound to give those assets to the outside bidder.

GM's chief spokesman Stephen Harris said that the sale of healthy assets to a new company is something the company will look at if it is forced into bankruptcy, but that GM is still committed to reaching cost-cutting deals with creditors and unions that allow it to stay out of bankruptcy.

"No decision has been made on a bankruptcy," he said. "That [kind of sale] has been mentioned by a lot of people because of your ability to get in and out of bankruptcy quickly. Everyone agrees if we have to go to bankruptcy, getting out as quickly as possible is essential."
Future of GMC, Buick, Pontiac in doubt

Harris wouldn't comment on what brands would go with a good GM and what would stay with the bad GM. The biggest question still unanswered, according to experts, is where Buick, Pontiac and GMC would land.

President Obama went out of his way to mention Buick's improved reliability ranking in his remarks about the future of the industry on March 30. But as far back as 2005, then GM Vice Chairman Robert Lutz was conceding that Buick and Pontiac had become damaged brands.

GMC, a truck brand, has been hurt by Americans' growing preference for fuel efficient cars rather than pickups and SUVs.

Many experts argue that outside of the potential in China, a growing market where Buick is particularly strong, there are few advantages to keeping those three brands alive.

"In North America, they can get by with Cadillac and Chevrolet, the way Toyota gets by with only Toyota and Lexus," said Aaron Bragman, research analyst with IHS Global Insight. "This is the golden opportunity to shrink down to the size that's justified by their current sales."

The extra brands drain off marketing and research and development dollars that could be better concentrated on Chevy and Cadillac, according to those who favor GM getting rid of Buick, Pontiac and GMC.

But other experts argue those three mid-market brands still have value for GM, particularly when auto sales start to return to more normal levels. They say without the sales generated by these brands, the remaining GM factories wouldn't be able to operate at full capacity, which would hurt their competitiveness.

"If it's going to cost more to eliminate them than keep them, why do it?" said David Cole, chairman of the Center for Automotive Research, a Michigan think tank. "If there was an easy case to be made to eliminate the brands, it would have been done already."

But others point out that concerns about the cost of eliminating hundreds of GMC, Buick and Pontiac dealers are what has kept the brands alive this long.

Still, one car industry expert said it might make sense to get rid of the dealer networks for those specific brands but not kill the brands themselves. Chevy dealers could sell some of the more attractive Pontiac models, while Cadillac dealers could sell the handful of Buick and GMC vehicles that have some value.

"I think there's some equity in those brands," said Karl Brauer, editor-in-chief of Edmunds.com. "What you can't have is separate dealer networks anymore." To top of page
First Published: April 10, 2009: 3:39 AM ET

http://money.cnn.com/2009/04/10/news...d_gm/index.htm

The reason I mention this article here is because this is the exact same fate that Albertsons had suffered. The "good" went to SuperValu, while the "bad" went to the LLC. I would not be surprised if the same happens with GM. The truth is, many people are fed up with the govt bailing them out when they haven't done much of anything.