State of the Cities

" Course of the next hour talking about. Total local view of our national economy the states of the states a lot of them -- in a lot of trouble again and and we've heard that document another question is what -- to do right exact themselves out."

" Looking forward because we know the local governments often see you ripple effect a little bit later than everyone announced dozens and now we we think corporations and the national government trying to move ahead with the local governments are still sort of stuck in Iraq. And that and we're talking today about strategies and tactics and and weights at these nationals in the cities all across the nation are are chugging and --"

" Absolutely -- he's a good way of putting at the Federal Reserve just released a survey showing signs of stabilization in eleven of its twelve regents might be just an indication the recession is turning around so we're going to have a roundtable of a number of mayors from several cities weighing in on how they're dealing with things also briefly could share our good friend from strategic resource group is gonna come and talk about how the retail market in the city's work. Kind of an indicator of recovery in many ways that we start with Christopher Haiti today. Who is the director of the National League of Cities Christopher joins us from Seattle good to have you on the program to start off this discussion is gives is an overview. Of how things are looking we know there's been struggles and many cities around the country because of the economic downturn. Think starting to get turned around -- not yet."

" Not yet I think we're still a year or two away from seeing that turnaround. As as you said earlier there's usually one or two year lag between when full effects the economy -- felt in cities we've got a little ways to go yet."

" So what are what are some of the taxes that your tactics that you are seeing that cities are playing to get over this meanwhile. We're seeing a recovery in a lot of parts in the nation we don't see an end clearance for two or three years that does not help. The picture here you're not going to see revenues -- intake. Go any higher than for sixteen municipalities. So what are they doing in the meantime because they say they -- keep providing services right."

" Right and then there aren't really any sort bullets here you either have to raise revenues or cut spending or some combination of it. Of those tactics and so what we're seeing so far is that cities are cutting spending mainly through personnel related cuts layoffs and hiring freezes. Things like that and they're also delaying or canceling some of their larger infrastructure projects which are multi year large investments. So that's the spending side so far. On the revenue side they're doing their best to recognize that local residents signed in the whispered in camp whether it tax increases so we're seeing an increase in. Fees for services where you pay as you go essentially for the service that he is."

" Now -- seeing some high profile cases like California to get a lot of attention terms of their local struggles with some others that haven't been. As in the news and in -- states aren't our cities are created equally. Numbers in no way showing expenditure growth of four point 9%. Revenue growth three point 4% and expenditures higher than the revenues the projections certainly don't look positive going -- this year maybe even next. However are there any examples that you could think up. Cities that are doing a good job of dealing with a bad situation -- hand they've been -- and digging themselves out of it."

" Well I think that a lot of this have to do with fiscal management and and -- the places that you see that it doing well are. Cities around the country that saw the crisis coming and it's very conservative estimates about where their revenues and spending would be coming into this recession. And so they've been very well positioned to weather the storm. A lot of this actually has to do with how far out cities -- so for example one city. That's been hit very hard as Philadelphia. But they've been able to view is that a little more effectively because stateside coming in -- budget for five year periods and so they were able to look out and make some tough choices early."

" So in addition to Philadelphia who what are some of the other cities and what do they do claiming that I've been reading that some of these cities are charging additional fees to collect your garbage to you -- have a normal routine. Services that we all get and expect her free out of the government exactly seeing as a trend going on -- many -- Success stories you can point them."

" Yet if -- story is really something that is pretty universal across the country cities are returning to fees for services to provide. Those services it's something that tends to be more palatable for local residents because they understand that they're paying. The end for an amount of the service and they also tend to see that the cities may be struggling and knows -- might have built up a little bit. But -- anymore palatable as a response from the city than say -- general tax increase of some kind whether residents might not understand what the money goes for necessarily."

" And many see your garbage pileup on your on its secrets have been increasing willingness to hate it that's very that's probably true -- yeah eight yeah right you won't get it out of the way no doubt about it you know Chris through ATC. Kind of a broad economic impact of all this being something that. Is. This is a threat to us what we go into next year people start talking not always the economy and it's always the national economy we city economy that we're talking about that. In fact there's a lot of local economies that are either Warsaw for better off in the national economy as a whole and we live in our local areas do you think that the this state of the city's. And it threatens the national economy and and the idea this double dip recession a lot of it was thrown out."

" Yep that's the concern we."

" the nationally -- city center's city governments around the country is that in the middle of what will likely be a slow recovery by most economists experts. Opinions we then what will happen in the cities is that. Will be making cuts right at a time in the economy is trying to grow and so that spending side that that government spending side will be going down. And won't be as much of the stimulus -- might otherwise have been."

" This seems like doom and gloom situations -- and you -- Christopher -- Isn't as bad as we think that it's going to be and isn't going to be as bad as what we've seen an --"

" parts of our economy."

" I think it is a -- doom and gloom in part that's because it tends to take a year or two for economic. -- to play out in local government so they're still. They still have some down turn here to CNN in terms of their own decisions. But it may not be as bad as everybody thinks in the sense that. It's during periods like this when leadership tends to matter most and we have some fairly effective leaders in these cities around the country who are. Making the tough choices earlier about where some of these cuts occur which. Should allow them to then make some choices about investments sooner than it sooner than they might otherwise you want to make in the next year's him."

" Have you learned anything from watching the places where they do you cut those who is looking at job. Yeah yeah because there's a lot of options about in terms of the services that you want to cut or do you want to raise local taxes to try to bring it next. Extra revenue and which is difficult draw on not to do during an economic downturn is really we're Dallas and LA and Chicago -- cut their public safety for example. Patrick church try to prevent the budget problems say in the future. What would've been the best ideas what's worked best so far terms of the cutbacks."

" Well what seems to be working best is is is actually. I sort of a tiered approach -- Tennessee cities go through. First trying to cut services that they might deem as. Say less essential in public safety public safety tends to be seen -- obviously a very -- service to try and protect. But at the -- deep enough of the downturn -- enough. Eventually have to turn to weather major costs and expenditures are those tend to be an employee and personnel related Arenas and in public safety so. In places like Chicago and Dallas and Los Angeles where those who -- the budget gaps that are facing a life. That's why you've seen the -- of public safety it's it's indicative of just how deep the downturn has been so far."

" Christopher how are and there the local governments how are they seeing their hands tied in ways that may be other entities and and are having their hands tied for example in laying off workforce and you're dealing with. Unions and other complexities that made things harder to accomplish. So as a result is this problem you know going to play itself out in a way that is. Probably not as straightforward as we would like if you're company could come out there and just and fire people. Do local governments have that option or are they going another route."

" well I think you hit upon exactly their hands are tied in the sense that. They can't simply just make a decision to cut back you know there workforce and the services that they provide by some dramatic margin. Not because it's not as if there providing something optional right there there providing public safety rose street lighting. You know various things that the public. Needs to consume. And so they have to maintain certain levels and so certain level of -- just isn't isn't possible. And that brings them and the other constraint which is they're required under most state lives. To balance their budgets and so they can't carry deficits forward. They -- they can't necessarily. -- deficit into some sort of debt spending that might play out over years and years to come so. They they pretty much have to deal with whatever these gaps are in the current fiscal year that --"

" Yeah that's a big difference -- by head on this that they don't have the same advantages are that the in the ability to deal with that the way the federal government does but. You know the federal government does have that ability is it doing enough I'm sure you're gonna say no because you're represent an interest in cities that the federal government doing enough in itself if not what more needs to be done to help these cities."

" Well the first thing I'd say is actually there there's an upside here in terms of a stimulus package at the federal government passed and that perhaps the worst here that cities will be facing his the next fiscal year 2010. And that's when bill large pool of funds in the recovery package actually come out to city governments and so the timing there could be -- It won't be it won't solve every solution it won't be a silver bullet in this regard but it will probably provide somehow. And that goes to the other point you may -- which is the federal government could do more they're certainly investments. That the federal government could make in state and local governments. That would keep spending it by those governments -- service levels higher and probably help forestall some -- a larger impact on the economy of reduced state and local spending."

" This is in a little bit of a better spot. Well who would hope it gets better as opposed to getting worse Christopher thank you very much for coming on. From Seattle today my pleasure Christopher -- national football league of cities directors that he get a nice job setting us up to the -- we're going to have for the rest of the hour which is. That definitely more of an of a personal one what some people that are trying to manage their way out of this because that's what as you said the top of the combined with the key is is not. -- we know things are bad habit of what do you do about it what -- the creative night."

" You -- local governments or their hands are tied act in ways that Christopher mentioned leadership matters as things at that these governments -- local dot governments are doing. And we want to know what they're doing because it affects all of us."

" It's your guys we have -- coming up in Kansas City and Fargo, North Dakota this is a different ideas here on. On how those cities are dealing with the economy how they're seeing it turn around or if they're seen turnarounds -- statements. Not really looking forward to getting some mayors on the program to talk about the the state of the states in America's dying cities to some degree hopefully. Rebounding city said mayor mark -- Castro joins us Kansas City. And mayor Dennis walker joins us Fargo, North Dakota. Mayor -- media -- city first of all give us an idea how things are gone there."

" Well where you in last year's budget we had a huge shortfall in seven million we may go up the shortfall -- Make your 10% cut -- work force which is probably the first actual lay off so people locked -- percent and twenty some years -- with the government here. We did deep cuts to police and fire and deferred we deferred a lot of maintenance projects we've. Restructured employee benefits and cut benefits in some -- so. No we. -- as as was said by the previous polls we've had to pick up the shortfall in negative right now."

" Okay she'd done that could get a balance your budget so that's a tough cuts and had to be made. -- walk out there in Fargo, North Dakota -- is going to have you guys on. Is because North Dakota traditionally has the lowest are one of the lowest unemployment rates -- country and in Fargo kind of is is right along the same line so that something being done right there or maybe it's just luck of the draw so to speak in terms of geography tells about."

" Well basically. The we never reached their highs of of the process dealing with -- booms we don't really realize the bottoms of the recessions. Are people are very conservative. We did not get involved in the sub prime more mortgages and so forth across the nation. So we don't have that. Problem right now basically are tax structure is still saying we did we just finished our our I finished my fourth budget. And it was probably the most difficult but we do not have to lay anybody off. There is no -- there's -- cost of living increase in this budget and so forth. So. I sympathize with everybody that's gotten much worse than we do because. When you do all of that. It's hard to come back. It takes a long time recover. And so forth in and all things there are pretty good are companies that have international ties. Like bobcats in that sell overseas. They are having some real serious problems they've had some cutbacks. And it is not all roses here but. We have a big significant process with Microsoft here and there's been some small lay off of there so forth. But we're still -- roughly 4% as far as our. Unemployment is concerned. And this budget should be final in my next couple weeks and then we'll go from there."

" Near the Miramar earned her conservative people yeah thank. -- analog let me just interrupt you another thing that just jumped out at page and now what you're doing in your city as well as that we side north and North Dakota as a whole. As a state had a one billion dollar surplus. And that is not a word that we -- too often and in this environment talked USA about that and what is it that we can all learn and its surplus. This is surplus a surprise that you guys have then whether it will -- to contemplate was it a -- and a drop what. Things are you doing right."

" Well the whole thing is being conservative capsule is being very conservative. Even what that billion dollar. Budget. Windfall and so forth was because of some good people doing some good things. We are an energy state we produce a lot of oil we produce a lot of electricity through coal fired generating plants and so forth were higher cultural state. The prices were extremely good a couple of years ago. And their crops this year or are fantastic -- the prices are down. But the whole thing is if if I was going to put this in some kind of a nutshell. We did not get consumed by the U. That some products some pride in. Mortgages and so all of our banks stayed very stable. And I applaud those people for that foresight to be very conservative and."

" And that is again that is a rarity to lend money to people without any assets that as a rarity that foresight in any condition by residents who -- fun house I'd like to ask you you know. Eight in Fargo they have a lot of different industries that are helping to spur local growth there energy's one of -- not something that you're seeing as well. What meat industries that you're seeing on the ground that that I'm going to spark. The growth spark their recovery in your area."

" Well one other companies that we're talking a lot about the last several of those who Sharma and there are great good medical technology company worldwide. Homegrown plays during Kansas City. And their sector of the economy is booming and they're going to have employees and grow dramatically. Another local company here in my fault an area that has a lot of employers is. Do logic here -- the stuff and then they're going to do well. We have. Those were all. Institutions. In Kansas City are a couple of lower -- they're actually -- news -- And Commerzbank. And they have both been very Rivera sounded all this I talked to one of the bankers from one of those banks. Now when things were really going south and I sit -- your daughters -- are doing great we've been confirmed 400 years for this."

" It's home right so there aren't. Well I guess a lot of ways of -- their focus on ask you one more -- in Iraq -- at a Salt Lake City to join us in just one minute the mayor fun 'cause you brought up a good point there right the started it. About the company you do you sir there is an example okay so we're obviously this fall having this big debate over health care in this country and one of the things that people talk about his. Using more technology going forward from here. Have you talked to people in your city. That are completely changing gears in their life in terms of careers and taking advantage of new industries that are coming on board. And you know -- growth in one industry versus a place they had worked this kind of getting out of favor to some extent -- see a lot of change for individual people."

" That they're kind of changes that you serial -- individual people there's a growth of -- commercial. This superior close very you know do you got laid off were bought out to from a big corporation. Am very good to go a little a couple of our friends and the launch a business. I'm told that that's sort of that sort of thing happens often and processions and and we see it happening here. And we're trying to restructure the way that we do economic development incentives and so was regarded program that we're gonna launch bold new tools. Which -- specifically designed. This further kind of homegrown on commercial potential of going out there and smoke structures are you trying to recruit a company we're trying to sort of grow our own."

" Right from in there that makes a lot of sense they're in Kansas City let's bring in Ralph Becker mayor Ralph Becker of Salt Lake City, Utah being you've had a chance hopefully their back and listened to a least a few minutes smart conversation time the mayors of Kansas City and Fargo. About this the state of our our our cities what would you add to it from your perspective out there in Salt Lake. Well first off I think we've been very fortunate here in Salt Lake that we have some development that started before."

" This crisis hit and has continued really unabated. So that certainly has made a difference I think in the whole psyche of this city. Certainly we've had individuals who have been harmed and we're doing everything we can to help those folks. And they get as mentioned by mayor Tom -- we're seeing a lot more entrepreneurship we've had 23 new businesses open up in downtown Salt Lake just in the last. Not to three months. And we're seeing I think is well. I think that the benefits of a very diversified economy. Great research university here. And I think the attitude here is one of real optimism and that has. Persisted I think except for a fairly short period of time and everyone was just reeling from what's happening nationally."

" May have somehow there was talking about. The summit creative things that they are doing to spark onto the new ownership. I'm near victory talked about the new companies that are coming into downtown Salt Lake what are some of the other things that thinking outside the box. Prime -- they you guys been installed and that we can we can all take home Canadian -- our own cities."

" Now that I mean one of things is that we had a focus on local businesses and we are. We've been adjusting our local business assistance revolving loan funds and advice. City assistance. And and rattles and those certain things for downtown Salt Lake. I think the other thing now is not to lose sight of the positive things that are going on we've got a superb quality of life here. And people appreciate that I think more and more every day in terms of what we can offer both our resident sent -- people are looking for where locate businesses. And then we've we've been very target is I think we've heard the other mayors say we grind you know we've we've we've really have work to look at businesses. That we we can fit well Weathers because of university researcher who -- much more closely with our university in recent months and years. So it's a whole combination of things it's it really is I think. Trying to maintain. What we've seen happening here and our unemployment rates about half of what we see and other western city which is good news in a lot of ways are we have three mayors with -- Ralph Becker Salt Lake City mark -- Kansas City, Missouri. And Dennis -- Fargo, North Dakota and all three are going to stay with us so we're going to take a quick break continue with that. And this special coverage to state. Of our states America's dying and hopefully recovering cities to stay with us."

" We are back with our mayors' roundtable with us today we have Kansas City mayor mayor mark -- mayor. Dennis walker at Fargo. North Dakota and Salt Lake City mayor Ralph Becker thinks -- for joining us again. This is -- really riveting conversation we're talking about gauging the temperature of what's happening in cities all across the nation and frankly how they're being creative about challenging taking on the challenges that lie ahead. -- wallet I want to again come back to you you have a number of industries he would call them. High growth of high importance to the government the government is putting money into things like wind power energy sources. Howard how is you are local area been able to benefit from some of the national government interest. In these areas."

" Well they're. Do you know we'll we'll talk about two things number one is the Renaissance zone which is our -- renovation of our downtown. That's going fantastically it hasn't. Lost one mile. One minute of opportunity continue to improve our downtown what used to be when I was a child. A number two the stimulus package. Create an awful lot of employment on -- for completing projects that were going to be free for years. Into the future. Improving our infrastructure and so forth all those are very important but like one of the mayor said. The whole process is not a simple one bullet. It's a process of trying to assist people that want to invest in your community. And then the same way with the university we're fortunate we have three universities here. In this general area and all of those are being doing research and try to provide jobs. So for our personal aspect is very simple fifteen years ago. You most of our people were educated here left. And that's not the case anymore we're providing opportunities or asking many of these employees come back. So as far as our unemployment rate right now it's pretty good. Is there not any problems out there yes there's problems out there but right now we are not. Doing the negative things that are happening in some of these other community -- Merrill if we had to cut our public safety are our staff and it would be very difficult -- to come back over a short period of time."

" That makes sense they want commissioner at the outset of his remarks job. Gentleman -- the idea of the stimulus package and I wanted to talk to us. Yet you mayor verify Casimir Becker go to you first verify accounts -- Kansas City, Missouri about the idea of the relationship between the states and the cities. And the federal government there's been some criticism of the federal stimulus package saying the money's not getting out there as quickly as it needs to have you seen an impact to your local community. From federal money coming in helping out."

" Yes premier I would say we definitely should remember -- we offset song. All of the big cuts that we had to make or lose department was federal stimulus money we were successful in securing a competitive grant that allowed us to keep about 23 officers we otherwise would have to lay off. So we've been time we've been unsuccessful in getting us in this moment for housing forgot about seventeen million dollars thousand. -- about point seven million dollars for general infrastructure. We definitely cold agreement impact zone which -- a 150 blocks. Of Kansas City. Are just devastated bump -- 55% unemployment but congressman Emanuel Cleaver was able to capture the Obama administration's. Imagination. With this idea of an environmental. Impact somewhere being able to funnel additional dollars into that zone so. Our overall strategy and business to spend the money in such a word. As to -- more density. To get people living in the urban core one of those. Big sprawling. Cities that has emptied out in Somers versus urban core group of economists don't know. Right and yet to be efficient and effective with police services and infrastructure we need to be more dense. And are sort of overall strategy -- increased on street."

" Okay and you're using some the federal money to do that I -- dishing to find out we we do the stories and then we wonder mayor -- where the money goes after that do we report on the federal stimulus to know if it's working or not have not out there in Salt -- you seen any impact from. -- has been very positive impact in fact it's been very positive impact on the stage and part of the reason I think it's been beneficial in some cities because our goals and objectives have match very well what what we've seen in the stimulus package in the emphasis on renewable energy energy efficiency. Transportation improvements as the other mayors commented it to living well and in urban environment. And so we've been able to match up in the whole variety of areas of that have been mentioned. Our emphasis. With the stimulus package where transportation. We're building seventy miles of -- right now and we've been able to. Keep that pace going in terms of improvements that help not only today and create some jobs are winners of construction where they're needed. But it really we believe is going to sustain us and move us toward longer term."

" You know gentleman before you came on we had a guest Christopher Haney he's with the National League cities director is giving us sort of setting up the stage. For a what the nation is feeling really -- city by city basis. But he isn't interesting comments saying that leadership really matters and then in this environment communication. Management leadership. What do you all viewing and -- spokes people the leaders of your towns. And how are you changing your leadership's style and struck sure maybe even. To deal with what's happening right now are you on the -- with different groups of people are you managing your -- differently when I start with you and near my house there."

" Well one of the things they're we have paid a lot of attention to resort citizen to -- and our citizens' satisfaction scores and that sort of thing. And in November of oh wait those scores took a big guard down there have been going down steadily and they went down along I was completely disappointed. And people said how in the world can you improve the citizens of rational when you're cutting services and we. Changed our focus required in January of of folders on a city that works and started paying attention where we could spend a small amount of money. And get a significant impact. And in the most recent survey that amount we have increases in 47 different areas. And it's actually really came out of that looking pretty good one of the things like you kill people if it's not that we don't have any money. We're going to spend one point two billion dollars that's been smart."

" he's looking at the high in different ways focusing on race he can make a difference so what about you."

" Well one example is we had a significant event here in in March a big flood. And shortly thereafter. We asked the community. To participate on a half cent. Sales tax increase for twenty years. It passed by 90%. The thing that people demand today if they want to know where the money's going what's it going to be used for. And they need to have some transparency in government we have always maintain trying to be as open as we possibly -- which is possibly as a weekend. With the general population we just have to be that way we have to be very honest. We televise everything you know -- just a small thing. And so forth but we were successful. In march of 2009. So that what's -- was a huge success I was concerned about the election. It passed by 90% who. I mean that's unbelievable. The big margin and we continue that whole process as far as their Renaissance sought. And so forth so. Things are are good for the most part here we have not had to cut any services. And we hope to continue that I see some improvements in the economy right as -- drive to Minneapolis there's more trucks on the highway there's. Process what I see I'm optimistic about the future right now and ultimately we don't have to continue this cutting process. For a long period of time fair enough let's get mayor Becker to weigh in on this real quick before wrapping up with you guys and how -- leadership's dollar."

" Far change that you made because this. This downturn. Well I'm not sure there's been a change certainly has been a change in us focusing on how we tighten our belts and however we share as a whole community but it is still the same thing it is is having a vision. It's being pretty specific in being open and transparent -- our community. It's and it's by building partnerships with the chamber of commerce with our nonprofits. How we can't do things on in city government and and what we want to do in our city means everybody working together and that's been a focus I think from the beginning. -- I think because everyone's feeling a bit of events."

" Thank you very much an area that Becker fund Hauser and locker wishing you continued success and certainly will models that many city -- is out there will be fine -- thanks guys appreciate all of you joining us today are we're going to take you to."

" A place in main town in Maine that not very long ago would have been considered to be a dying city but now it's thriving why is that happening here to find out that assistance."

" Are guilty or just special coverage here in the state of the state state of the cities around the country here's who try to bounce back from the economic difficulties of last year -- by telephone Paul but -- joins us. He's now marketing a director at the Lewiston Auburn economic growth cancel. That's in Lewiston Maine which as I said a moment ago people in here could have been considered a dying city not that long ago. That's remade itself into a thriving city and up Paul you know I'll let you pick up the story from there what's happened."

" Well probably about the 1520 years ago. We will really considered -- moralists one horse town in that manufacturing. Shoes and textiles. We're pretty much the only industry that were flourishing. And so when the country when -- any kind of recession or or even a -- We'd be impacted significantly. Over the course of about ten years and just. Fifteen years really and is particularly true the last five. Our local economy is really diversified. For example some of the industry's particularly strong in the area including health care. Which is relatively recession proof. Transportation distribution and logistics is very strong here financial services. We've grown some retail. So what's really been our saving grace. You know among some other reasons that is really the diversification of our economy."

" Regis you Pauline you have some challenges that are very specific to your geography you have high energy costs costly housing. And even limited population that debt that requires a lot of X it infrastructure to get here and there from. So how do you balance the opportunities that are popping up in these high growth areas with that higher cost basis that you have to -- sort of ES. Citizen of name."

" Well we we certainly do have our our challenges that's for sure. This region has steered well not only because of the industries that we focus on. But because all of the amenities that we do have first of all we don't have that congestion of some of the larger cities. Even -- the rest of New England for example. And quality of life for example low crime. You know given that this is the anniversary of nine elevenths that that's not insignificant. And the and we also have. You know I think what is made me an overall succeed. In many ways is. Sort of that pioneering spirit. That people. Think of what they think of the name. You -- we absolutely true. Well fluid and Robert. We have de -- workforce. That tends to be very loyal very hard working. You know we we get things done. -- anecdotally you know we have no one of one of the largest privately that year over the last several years has been. Maybe a large Wal-Mart distribution center. Nearly eight million square foot distribution center that services super wal -- throughout New England. Can't win the site search was done. The folks. From Arkansas could not believe. How loyal. Our workforce was they interviewed local HF folks and Department of Labor folks. And it would -- believe that. You know a community -- guys particularly one that the that was heavily in the manufacturing in the past. For example they have unions it was not was not heavily unionized. It couldn't believe the loyalty of you know they they look at some of those steps. Well some of our large manufacturers. You know people people mightily. Had picked days. People stay on the job for 1520 years and they found it astounding and and ultimately they chose this location that was one of several reasons they did."

" People live in your city just just for reference."

" I'm yet and I should clarify that that I represent an agency. Been within city that this will we called Twin Cities here a lot of twenty to go to the country right. It's always -- in Auburn combined is about 60000."

" Assisted thousands in the two of them okay you know light up Paul thank you very much it shares destroyed and maybe give us some perspective or going through now. And a lot of towns and cities and states across the country -- thanks for joining us. Call but no there in Lewiston Auburn economic growth council so that's -- you're talking about a role we are all talking about this kind of creative. Look at something speaking of which this next guest. Very very -- is very creative in terms of how they've. -- how they've used things. The downturn to take advantage to try to propel people or. Incentivized people to spend locally. We're talking about using local currencies to help local economies to go to Albany, New York now welcome -- and she's the office manager Kirk shares. Now -- shares Sarah from what I understand and this is in the -- Which is very close to Albany of course and they have been in Massachusetts. You're using essentially. Your own -- making currency. Pretty money and then held back having people spend it locally is that is that basically the summing up tells about."

" That's act for change is that venison based tool. For the community to really stimulate the local economy. Individuals can take federal dollars into any participating banks and exchange them for Berkshire's 95 cents to the per share. Then add on main street they are spent at face value -- individuals get up 5% incentive. And then businesses and turned and looked -- other merchants where their business needs accounting advertising. Printing food sources."

" What's the attraction have you gotten -- with the local merchants in accepting these birds Harrison mean it frankly seemed a little bit complicated if you -- A business owner instead of taking real dollar if you take these Berkshire guy thing you probably gotta there a bank Tracy did indeed cash. Are you same people actually -- us."

" We are and it and it habit changing as he -- so it it requires. Certain. Persistence. Educational campaign has been necessary. We had. Ninety businesses that sign -- for the beginning of the program three years ago. And we now have closed up 400. So went education outreach and enthusiasm from the -- we've really been able to build the programs substantially."

" Okay so I'm -- local businesses are gonna like something like this because the incentive is set for the people to spend their money there you can only spend doled the money locally that's the whole point. What's the incentive for me if I'm a resident. To use this program you know economically how would you just explain it to me so right so I understand Iraq."

" So friend that consumer perspective I'm at the point of exchange of affect any of the banks you're getting a 5% increase in your buying power. So what was 95 federal dollars becomes a hundred -- shares. What you can and spend on any merchandise or service that would have cost you a hundred dollars that enough of in addition we're seeing a lot of participation."

" And thank is that it has that proved to be enough of an incentive that's enough to get people to go through your body says the."

" You know kind of the hassle of doing this transaction costs there is a transaction confident I'm sure it. Sure and what we're seeing at more or less about 10% of the population is actively participating in the program. What's more important -- we see in terms of educating our round the importance of local buying and simulating a local economy is -- just about everyone in the community knows what -- are at this point and have. Maybe half of whom have had. Important and new conversations. About the importance of community economics of supporting mainstay businesses getting off the Internet. I'm getting. -- your local needs with local production and local goods one pop."

" Do you -- is still carrying US dollars it I you get the living off could be Burks Eric isn't supposed. It could be a replacement -- that aren't substantive -- into or -- compliments you."

" Compliment is that right where it -- local currencies are also often referred to as complementary currencies today function. On the local level all the way that the national currency the federal dollars that you kind of cool story and -- seen about two point. Thanks to say -- about two point four million Berkshire's circulate through the community since the beginning of the program and there's currently at present about a 150000. And speculate. Shunt okay 150000 circulating eliminate early queens that you get in your pocket a dog what America."

" I just want to -- formula to go what they look like him and you guys find some local guide for the states on -- what's the deal with that."

" I don't know we've actually. What we've actually done is that thing called the fat -- here. This is our five Berkshire now and we featured local heroes and each bell said this is WE need a boy is that famous leader of the civil rights we have moved back. And -- we also have a local artists who've contributed and on the back of each bout will five spot."

" Right there -- like you know it's funny no thanks sir for joining us actually worked in the in the -- years for one year in Pittsfield Massachusetts. It's -- back in my days of Minor League Baseball announcer. And the funny part about that job was -- to pay. Is that an internship at the time appreciate it could not bring a picnic and how they don't have to take it does but it won't forget about the exchange -- that kind of put a dollar Melissa -- there. Anyway but it's a beautiful place to place in the country thank you -- our freedom really interesting. Thanks for the finance all right from that. See you as we continue here a look at that state of our cities and stated that the states around the country to how retail. Is playing a role in reviving America's cities retail consultant -- you're coming up next. -- let's look at the end -- cities here in the United States America's we've been doing all our long here."

" From a retail perspective -- we -- consult managing director strategic resource group joins us. For that because there's been a lot of that we could start the struggles in -- the opportunities I guess but boys have been tough out there locally. For a lot of different cities and the great thing about having you on birds and no action talk so much you travel a lot I have a lot of places check out. You're you're consulting business how individual retailers are doing what kind of trends he noticing. We're noticing as she referenced Connell both. Locally and long distance just came from the Goldman Sachs global CEO conference and the irony is. The food and drug retailers say that. People can't even afford enough for essentials. So for food they're by a lower price by more private label and buying last. Same with pharmacy even when they get prescription fill for not taking the full prescription and dynamite to the CO Wal-Mart said. Traffic's up -- sit sales are down. So but they. Did she -- great point on leadership and -- terrific team discussion with Sarah turned there are a lot of great leaders has she said the leadership's key. From the government side in great leadership in terms of entrepreneur orders and we are seeing some really bright lights and in the retail business as a result."

" What are the highlights in mean you've been on the ground you're traveling around probably staying in some small and big town things -- but small and big hotels as well. Read a bright spots and ended a lineup with the where the government says in all of these economic reports that."

" Are also seeing them -- camp. Some of the bright spots we're singer and the consumable side we're seeing. Whether it's Cornell University -- that a lot of the other universities are this students are creating their own flavors of milk shakes and ice cream and things like that that are being sold commercially. What's -- turns doing is. High in Lewiston Auburn for every Wal-Mart and opened you're gonna have a source close so in in in neighboring areas so it's a zero sum game. But in -- shares it creates so much consumer continuity and loyalty in Kyle's point great part of the country. In it protects the local merchants from the Wal-Mart supercenters tsunami so Wal-Mart does well. But the local stores survive at the same time and it. In. We look at Detroit and buffalo Niagara Falls region is -- worst areas in the country sure both in terms of up political leadership. In in terms of economic fallout but at the same time you have someone like Michael Margolis a new buffalo graphics. Who uses a symbol of buffalo and everything from cards to T shirts. Tied to new baby and infant wear. Record sales every single year between him and his family any shipping the product internationally. It's a guy you do have the entrepreneurial. Success stories at Cornell on the entrepreneurship program there working. Locally nationally and internationally with. Swimsuit designers like -- mills whose product was on the cover of Sports Illustrated swimsuit issue three of the -- and five years and end up. Really helping entrepreneur orders who who may be getting -- on their payables by the big department stores. Develop their own set of stores right now."

" Found mom and pop local and nature got. And Edwards is also advantages for this for some of the big companies you would think to step in. And take advantage of the recovery once it comes -- talked about Detroit and anybody who it's been Detroit over the last few years and the difference model stories on an office that you just brutal and really a sad. -- what's happened that city and it's not just in the last year to as the auto companies have gone under but really. For a long time it's been on a downturn really really tough. Is not the city that doesn't have by the way have supermarket national chains and what have you Detroit million. Who what what's going to happen there assisted the city recover sort tries to -- you're you're completely correct Connell. If they've had guy. Crime and corruption. For decades. When that when they need Robocop on Peter Weller product card to come and might have them what movie doesn't happen. -- I -- one okay committed to your point there isn't a single supermarket within the city limits whether it's -- 200 chain or anything else nobody'll step in and take this up because there's any restriction against this is nobody feels that's a good business proposition that -- there but fit the crime tired and in that then they -- then do. They ended demand. So. There's there's there's no no profit for an operator take that retail risk and enemies and means is this."

" Frightens a major -- also of all of these government cuts that we're starting a -- pullback in services is that you have to have a basic level. A public services that are out there so we don't start to -- asked for and crying and you know unsafe. Behaviors and then patent act puts a crimp on businesses as well right you're not going to see the congress if you're dealing with these problems of is that. Very fine balance sheet data keeping Japanese spend a little bit more than you would like to at a price well not balancing a budget. But as a result you're gonna have people coming in -- and bring in businesses."

" Right Richard -- you're you're you're writing in terms of that and it gets back to -- point about leadership. -- In Detroit with Wayne State University University of Michigan Michigan State if some of the best universities in the country of buffalo buffalo does too between. Cornell extension university of buffalo. They could establish the Biotech corn or switch to universities are willing to do present scored at Cornell wants to do his counterpart. UB wants to do it counterpart and MIT. Willing to do it. -- but the leadership. Is is so so constrained sewing can grow and in some cases so crude dropped in these cities. That the good grasp of the obvious in developing Biotech businesses I'd developing engineering businesses developing businesses that'll work locally. Nationally internationally. With a little bit of investment and you're going any any any good environment. Where there isn't -- to be the crime in the corruption. These Rust Belt cities and in these this is Connell referred to in the pre interview. These cities that are dying could be surviving and thriving yet to -- the separation between the island all the winners and losers but the end for the ones that it exceeded well and prepare themselves in the situation Fargo, North Dakota on earlier this hour. Versus other cities Detroit your example and there are others that just were not ready for this I finally heard let me leave you with this is like. What's going to happen next you've been pessimistic about the state of retail for a while I don't know if you change your mind but John you know the as the economy starts to recover nationally. Can we see it bounced back in some of these local areas are we still a ways off do you think Connell. 600 days through it. They're bad 400 days left. -- to your point of a bounce back though it's also it's also with it leadership we're seeing. -- Apple just revolutionized retail be ahead of Wal-Mart had a Best Buy in terms of music sales. Nationally and internationally and in terms of cities you have insurgent mayors. Like Mickey turns who's to who's running against incumbent mayor brown in buffalo hills turned that city around you look at. Cory Booker what he's done against this city machine and in any -- and a lot of attention there yet. And in Newark Cory Booker. One -- become a politician a lot of people think on national scene as well see whether pans out or not but anyway very. Go to to see you thanks for coming likewise in part of this special coverage on the fox -- doing a great job and then 9/11 memorial and honor so many people across the country across from -- in -- you have that -- important day you know if we always have to remember thank you -- thank you. Okay your body so we. Throughout I thought I was gonna say we covered a lot -- we've learned a lot to about what's how to bounce back these types of situations and when and what it takes to survive times like this and you know I generally positive attitude that we got from -- no matter what the situation was in the specific -- children. Positive start just want to remind everybody we have a live streaming show every weekday noon eastern time foxbusiness.com. Live we invited to join us for that to -- on Hulu and as a podcast. On iTunes as well for Shibani Joshi and -- to change thanks for watching everybody take care."