‘Cash for Clunkers’ Backer Sutton Steps it Up for Ohio Transit

Rep. Betty Sutton (D-OH) was one of the prime movers behind the economically and environmentally misguided "cash for clunkers" program, but she is switching gears to help save transit in Lorain County, Ohio, where bus service could be canceled in 2010 after voters rejected a sales tax increase to raise operating funds.

betty_sutton_energy.jpgRep. Betty Sutton (D-OH) (Photo: OHP)

The local Chronicle-Telegram newspaper reports that Sutton is seeking approval from congressional leaders for the county to reprogram $1.5 million in unspent stimulus money:

Sutton sent letters this week to David Obey, D-Wis., chairman of the
U.S. House Committee on Appropriations, and Jim Oberstar, D-Minn., who
chairs the U.S. House Committee on Transportation & Infrastructure,
seeking approval for LCT to use $1.5 million in untapped American
Recovery and Reinvestment Act of 2009 funds to operate the bus system.

“We hope new appropriations bills can be OK’d by year’s end that
will let us use this unspent capital money,” Cordes said. “We’re trying
to avert a total shutdown.”

Officials have said it is vital for the county to maintain some form
of public transportation to remain eligible for federal transportation
funds.

The inability of many localities to spend federal aid on transit operating costs — thus creating jobs for drivers, maintenance workers, and other day-to-day staff — has left many rail and bus networks facing punishing service cuts.

Congress agreed in June to let states use 10 percent of their stimulus grants for operating assistance, but Sutton’s move could open the door for that number to increase in the coming weeks.

  • Mike

    I’ve always had a problem with Cash4Clunkers. To me it seems to go against simple supply and demand economics. How can we push all of these new cars into a market already saturated with used and repossessed vehicles (see http://www.repofinder.com)? Now new cars are worth even less, we have more Americans in debt, and eventually more repossessions.

ALSO ON STREETSBLOG

Today’s Headlines

By Elana Schor |
Rep. Sutton (D-OH) working on a deal to divert unused federal stimulus funds to save endangered bus transit in Lorain County (Chronicle-Telegram) Cornell University economist on the best way to leveraged borrowed money during an economic recession: focus on infrastructure projects with economic multiplier effects, such as removing rail bottlenecks in the northeast corridor (NYT) […]

GAO: Economic Recovery Benefits of ‘Cash for Clunkers’ Are ‘Uncertain’

By Elana Schor |
"Cash for clunkers," the White House’s much-touted program encouraging trade-ins for more fuel-efficient autos, had an "uncertain" impact on economic recovery, according to a new audit from the independent Government Accountability Office (GAO) — largely because it remains unclear how many of the car sales it spurred would have occurred without taxpayer subsidies. Were "clunker" […]