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States Diverting Mortgage Aid To Pay Unions

From the New York Times:

Needy States Use Housing Aid Cash to Plug Budgets

May 15, 2012

Hundreds of millions of dollars meant to provide a little relief to the nation’s struggling homeowners is being diverted to plug state budget gaps.

In a budget proposed this week, California joined more than a dozen states that want to help close gaping shortfalls using money paid by the nation’s biggest banks and earmarked for foreclosure prevention, investigations of financial fraud and blunting the ill effects of the housing crisis. California was awarded more than $400 million from the banks, and Gov. Jerry Brown has proposed using the bulk of that sum to pay the state’s debts.

Which means that the money meant for mortgage relief is now going to the public sector unions.

The money was part of a national settlement valued at $25 billion and negotiated with five big banks over abuses in their mortgage and foreclosure processes.

The settlement, reached in February after a year of talks and intervention by the Obama administration, was the second-largest in history involving the states, trailing the tobacco industry settlement, and represented the first large-scale commitment by banks to provide direct aid to borrowers.

And look how quickly the states were able to pervert this. It only took a couple of months.

As part of the settlement, the banks agreed to pay the states $2.5 billion, money intended to help homeowners and mitigate the effects of the foreclosure surge

Only 27 states have devoted all their funds from the banks to housing programs, according to a report by Enterprise Community Partners, a national affordable housing group. So far about 15 states have said they will use all or most of the money for other purposes.

In Texas, $125 million went straight to the general fund. Missouri will use its $40 million to soften cuts to higher education. Indiana is spending more than half its allotment to pay energy bills for low-income families, while Virginia will use most of its $67 million to help revenue-starved local governments

Note that all of those except Indiana are using the money to pay union workers and their pensions.

Andy Schneggenburger, the executive director of the Atlanta Housing Association of Neighborhood-Based Developers, said the decision showed “a real lack of comprehension of the depths of the foreclosure problem.”

But it shows a real comprehension of politics. Union members are much more dependable Democrat voters than deadbeats.

In some states, redirecting the money could have a racially discriminatory effect, said Alan Jenkins, the executive director of the Opportunity Agenda, which supports homeownership, because in some cities black homeowners disproportionately lost their homes, Mr. Jenkins said.

“If you dump all of these funds into the general coffers, the African-American homeowners are not going to benefit in any real way because they represent such a small percentage of the larger state,” Mr. Jenkins said.

Of course, this is racist. Isn’t everything?

But, come to think of it, what is the racial composition of most states’ public sector unions?

This article was posted by Steve on Wednesday, May 16th, 2012. Comments are currently closed.

3 Responses to “States Diverting Mortgage Aid To Pay Unions”

  1. untrainable says:

    Governor Moonbat is going to use the 400 Million dollars to pay the state’s debts. What form of math are they using these days on the west coast? The last I heard, California was running a 16 BILLION dollar deficit. $400 MILLION isn’t going to do the job. I also heard talk last night about Facebook’s IPO making California $2 BILLION dollars. The reporter asked if that would help with the deficit situation. The contributor responded, “…that money has already been spent. They took that money into account when they figured the dificit figure. So that means without the $2 BILLION dollars that they don’t have yet from Facebook, they’re actually $18 BILLION dollars over budget. And Moonbat has reallocated $400 MILLION meant for homeowners to make up the difference. I ask again, what kind of math are they using?

    Wait for the inevitable…”We’ll have to fire all the teachers, police, and firefighters and release all the prisoners from prison if you don’t accept a tax increase”. Moony is putting tax increases up in a referendum ballot in November. Yeah, that’s a plan. I’m waiting for Hollywood to relocate to bum f*** Indiana.

  2. GetBackJack says:

    If I had the power, as do the angels of God when they bring His Revenge, I would lay waste … Biblical waste … to everything and everyone Union.

    That Is A Promise

  3. Kytross says:

    I’m in a union. We’ve saved alot of people from some administrators and managers who were abusing their power, myself included.

    They wanted to fire me for falling down, ignoring that these were documented as unsafe work situations I was required to travel in, ignoring that I followed all of their required safety procedures and was wearing the required PPE, they wanted to can me because I was “unsafe.” They called me into the office, gave me my discipline paperwork. My union rep and I read it over and he said, “Don’t sign it, we’re grieving this.” Within a week the company had dropped it and acted like they never even brought it up. Officially, it never happened; there was never any paperwork filed, though I still have my copy of the discipline.

    Unions aren’t good, they aren’t evil, they’re just tools. Like any other tool, they can be used for good or evil.

    The unions in this article are abusing their power, and I am disgusted and outraged.

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