Credit crisis affects Minnesota programs
The Wall Street credit crisis is having a direct effect on Minnesota, KSTP reported Friday.
Three out of the five major investment houses that bid on bonds from the state of Minnesota to raise money for city and state projects have crashed and are no longer in business.
The state of Minnesota has canceled plans to seek more money next week to pay for improvements to police communications across the state. The project will not be delayed, but taxpayers will be forced to pay more.
In addition to 911 communication, roads in Bloomington and streetscapes and lighting in Minneapolis are suffering a loss of funding.
The Minnesota Commissioner of Finance was planning on selling $42 million worth of bonds next week to continue funding 911 communication systems, but the sale is now on hold. Construction will continue, but probably with the help of funds contributed to monthly by cell phone users.
Minneapolis is uncertain whether it will continue to attempt to raise $7 million in November for street, landscape and road improvements.
"Bloomington officials say they will go ahead with a nearly $10 million sale on Monday, but taxpayers will have to pay higher interest rates to investors to convince them to lend the cash." (KSTP)