Cities wrestle with economic bailout request

Associated Press Writer= SAN FRANCISCO (AP) - As three major U.S. cities asked the federal government for a slice of the $700 billion bailout plan, other cities were considering whether that was the right move for them.

Illustrating the complexity of the situation, San Jose Mayor Chuck Reed told The Associated Press early Friday he planned to request 2 percent or $14 billion of the federal government's bailout package to pay for mass transit improvements and expansion of the area's clean-technology businesses.

Hours later, the mayor issued a statement saying he would not ask for any of that money, unlike Philadelphia, Atlanta and Phoenix.

"I do not plan to ask Treasury Secretary Henry Paulson for TARP bailout funds for San Jose at this point in time," Reed said. "However, if TARP funds become available to cities, I will work to ensure that San Jose is allotted its fair share."

Reed said San Jose needed federal money to complete funding for the extension of the Bay Area Rapid Transit line, or BART, and to expand the area's clean technology businesses, which, he said, could produce 5,000 jobs. He also said the money could be used to fund "long-neglected infrastructure."