A new report in today's Business First examines the Cash for Clunkers program. On the bright side, the federal program aided the environment by cutting the number of less
fuel-efficient vehicles on the road and helped clear inventory off dealer lots during a slow time. Officia ls say nearly 700,000 older vehicles were replaced.
On the downside, the Niagara Frontier Automobile Dealers Association says timely reimbursement for dealers is a huge issue, since the government put a $2 billion loan on the backs of dealers who advanced the money. Duane Paddock of Paddock Chevrolet says the government has paid him on only 27 trade-ins out of 300, for an outstanding $1.1 million. He's guessing it will be 30 to 120 days before he gets the money.
A report in today's Business First shows how the public sector is buying into more cost effective means of doing business. For example, the report says the town of Elma is streamlining healthcare coverage for employees and the village of Akron is working out compromises with unions. It says Erie County is struggling to come to similar arrangements with its eight employees' unions. The county spends $125 million on health-care coverage each year.