Monday, June 23, 2008

U.S. cities cut services, raid reserves on fuel cost
Fri Jun 20, 2008 2:48pm EDT
By Rebekah Kebede

NEW YORK (Reuters) - Surging fuel prices are forcing cities across the United States to cut back on services and dip into cash reserves to keep their fleets on the road, according to a survey released on Friday.

Ninety percent of the 132 mayors surveyed by the U.S. Conference of Mayors reported that climbing fuel prices have had a significant impact on city budgets and operations...

...Just under a quarter of the mayors surveyed -- 23 percent -- said they have been forced to slash spending for other programs in order to pay mounting fuel costs.

..."One of the effects of the fuel increase is a renewed sense of urgency -- rather than just talk about the problem, actually start funding and building ... so that people have a long-term alternative," Nickels said.

"Nobody thinks those prices are going down."

Five years ago would have been the time to start funding and building electric mass transit lines. Now, I'm afraid, it's too little too late with nothing but falling funding to work with. Makes you wonder just what those city planners have been doing all those years, because they clearly weren't planning for anything approaching reality.

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