Federal Tax Dollar Bailout Funds Sought for Five Wisconsin School Districts

Amy Hetzner:

First came the banks, then came the car manufacturers, now federal assistance is being sought for five Wisconsin school districts that made bad investments.

At the urging of the Kenosha Education Association, U.S. Rep. Paul Ryan and Sen. Russ Feingold have forwarded to the Treasury Department and Federal Reserve Bank a request that the government buy $200 million worth of "troubled assets" purchased by the districts in 2006.

KEA Executive Director Joseph Kiriaki said he hoped that the same Troubled Asset Relief Program that has spent billions of dollars buying the toxic debt and stock of financial institutions can help local schools, as well.

"It's one public entity to another," Kiriaki said.

In his letter to Wisconsin lawmakers, Kiriaki notes that the school districts purchased the same type of investment, known as collateralized debt obligations, that the Federal Reserve Bank of New York took off the books of American International Group last year.

Fascinating that they are referencing the AIG bailout. Much more on the stimulus/splurge here and the Treasury Department's latest plan here.

The Washington Post posted a useful graphic on the stimulus package.

Posted by Jim Zellmer at February 10, 2009 8:29 PM
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