The effect is wearing off, and only nine of fifteen headlines in the local daily pertain to the president’s visit to Asheville.

And so I turn to another topic: The Asheville City Council agenda, wherein every third sentence embraces and celebrates the welfare state wherein all facets of the economy are dependent on government, and money springs forth from the cornucopia of hope with no deflationary consequences. A sampling follows.

1. The city is trying to close its budget gap, and so it will award Mountain Housing Opportunities $400,000 from the municipal Housing Trust Fund, which only has $282,909.24. In this rebounding market, the city is banking on loaners repaying. MHO has a way of garnering more than the lion’s share of HTF loans, anyway.

In another staff report, we learn MHO will be getting $237,757 $392,757 and $182,356 $357,367 from the federal government in CDBG and HOME grants, respectively, and an additional $175,000 in HOME grants for the project mentioned above. Moog Music, Inc. is also receiving moneys from the federal government. The City of Asheville is giving MHO a run for the money with receipt of $270,129 and $211,229 from CDBG and HOME. (updated 28 April 2010)

One of the staff reports addressing the CDBG and HOME grants states:

The US Department of Housing and Urban Development (HUD), US Environmental Protection Agency (EPA) and US Department of Transportation (DOT) signed a memorandum of understanding in May of 2009 to establish the Sustainable Communities Partnership. Through the programmatic agreement, these three federal agencies agreed on six Livability Principles. These principals are . . . (3) Enhance economic competitiveness. Improve economic competitiveness through reliable and timely access to employment centers, educational opportunities, services and other basic needs by workers as well as expanded business access to markets.

In other words, you get to pay higher taxes to pay to incubate your own competition and subsidize it when its bad management, bad products, or bad customer service make people prefer to buy things from you.

2. The last time council met, Brownie Newman asked staff to look into taxing big box stores. After all, the paeons can’t afford to shop at the malls or boutique food markets. We can fight the obesity crisis by letting their dollar go only 2/3 of the way.

Staff is currently reviewing the business privilege license fee structure and will be bringing forward for Council’s review changes that will likely include the implementation of a tiered fee structure that will impose a progressive fee on those retail, service, and wholesale businesses in Asheville that have high levels of sales.

This will work in that ideal world where people aspire to nothing, and so there’s no point in exerting oneself to be profitable. Only wretched capitalists imagine the concept of “earning.” Politicians strive to earn votes, but they’re only demi-human. The new economy does not legitimize staples as commodities. It is supposed to subsist on nonprofits, lawyers, accountants, politicians, and dependents.

3. The federal government is also helping with transit.

One of the most important elements to enhance the Asheville Transit System, as expressed in the Transit Master Plan, is to develop a marketing strategy that focuses on the creation of a new image for the system and promotion of route changes including system “branding” (logo), color schemes for the buses, signs, and new maps. The City would hire a consultant to support and assist in the implementation of the marketing strategy. Marketing is an eligible expense under the annual Federal allocation, with an 80%/20% ratio (Federal/Local). The total cost to implement the subject marketing strategy is a maximum of $150,000, with $120,000 being paid by Federal Funds.

One member of council asked why the city had to have a contract with a transit management company. The answer was that in the 1950s, urban transit was viewed as essential to the national welfare and therefore in need of federal subsidy. Transit workers were afraid the federal government would realize efficiencies, and they’d be automated out of a job. They also feared they would lose the ability to collectively bargain since states like North Carolina prohibited public servants from doing so. Both goverments were appeased with the Memphis formula.

The Memphis formula is an arrangement whereby a publicly owned transit system which is legally prohibited from engaging in collective bargaining by state law, establishes a private managerial commission to operate the transit system. The private commission, under contract with the public entity, employs the transit workers, handles labor relations and is permitted to enter into collective bargaining agreements with the employees.

In other words, 1 government plus 1 government equals 3 governments.

To qualify for state transit subsidies, the city must comply with the following:

1. Conduct marketing efforts/activities identified in a marketing plan.
2. Coordinate with local transportation and land use planning efforts.
3. Facilitate ridematching services through the ShareTheRideNC website.
4. Promote the Best Workplaces for CommutersSM Program.
5. Collect and calculate data on VMT and NOx reductions through TDM activities.
6. Operate in a manner consistent with the NCDOT goals regarding making our transportation network safer, move people and goods more efficiently, and making our infrastructure last longer.

4. Asheville continues to receive ARRA funds. The following objective is clearly assigned to the federal government by the general welfare and commerce clauses:

As part of the EECBG program staff is implementing an environmental education program for the community. The focus areas of this program include: recycling, stormwater, energy and climate. The first phase of this educational program focuses on recycling by partnering with the 21st Century Program to work with youth at the Burton Street Community Center. Students developed the community center’s recycling station and designed the recycling posters to educate center visitors about the do’s and don’t of recycling. In addition the students wrote, choreographed and stared in an educational music video about recycling. This video will be shown during the April 27, 2010, Council meeting.

5. To help balance the budget, the city will get a loan.

The City will secure approximately $1.07 million to finance approximately half of the construction costs associated with the Livingston Street Community Center. The remaining construction costs will be financed primarily with grants and donations. The projected annual debt service costs associated with the $1.07 million in debt proceeds ranges from $120,000 to $95,000. Funds are already included in the City’s proposed debt service budget to cover this cost.