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Posted: Friday, 14 November 2008 6:27PM

San Jose Mayor Wants Piece of Bailout



Chuck ReedSAN JOSE, Calif. (KCBS)  -- As three major U.S. cities on Friday asked the federal government for a slice of the $700 billion bailout plan, some California cities were considering whether that was the right move for them.

Illustrating the complexity of the situation, San Jose Mayor Chuck Reed said early Friday he planned to request 2 percent _ or $14 billion _ of the federal government's bailout package to pay for mass transit improvements and expansion of the area's clean-technology businesses.

Hours later, the mayor issued a statement saying he would not ask for any of that money, unlike Philadelphia, Atlanta and Phoenix. Reed says that if the federal government passes a stimulous package for cities he will request San Jose's fair share.

Officials in Los Angeles, San Francisco and San Diego say they are not planning to ask for bailout funds either, but did not rule out requesting some kind of federal aid if it became available.

(clo)


(Copyright 2008, KCBS. All Rights Reserved. The Associated Press contributed to this report.)
 
 
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