Cities Selling Stimulus Money

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A few Southern California cities have found an alternate way to use their federal stimulus money: selling it to other cities for cash.

Metropolitan Transportation Authority has allocated a minimum of $500,000 in federal stimulus funds to each of the 88 cities in the county for transportation-related projects. Unincorporated areas will benefit, too. Several smaller cities, some without shovel-ready projects, are making deals with others to sell or swap such funds and replenish their general funds.

For example, Bradbury, with a population of roughly 1,000, is working on a deal to sell its $500,000 share of federal funding doled out by the MTA to the city of Torrance for $315,000 in cash for its general fund, according to Torrance officials.





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