EASY HANDOUTS: CITY BUYOUT PLAN NEEDS LOCAL SHARE

The city of Cape Girardeau wants to buy and demolish houses in flood-prone areas. The price tag is $1.64 million. The concept of a buyout makes long-range financial sense. The Mississippi River has flooded in 15 of the last 20 years. In eight of those years, the river went over the 40-foot flood stage, flooding a number of the 65 homes in the Red Star, Smelterville, Meadowbrook and Highway 177 areas that have been targeted for a buyout.

But while the city council is right in seeking a buyout, it should reconsider asking for the full amount from the state and federal governments. If Cape Girardeau wants the money, it should contribute the customary local share.

No doubt this suggestion isn't what local budget watchers want to hear. After all, state and federal governments have paid 100 percent of buyouts in recent years in Ste. Genevieve, St. Mary and Park Hills. Councilmen might say, "Why should we have bite the bullet and come up with several hundred thousand dollars when other cities have not?"

The answer is simple. There is no such thing as a free lunch. It is just this kind of free handout that has put the federal government in the red ink mess that it is in. Just because other cities have done it doesn't make it right.

If Cape Girardeau can afford to pay half of the local cost -- $205,000, in this case -- for such a buyout, it should. That is the plan that the Southeast Missourian has previously endorsed. The 75 percent share by the federal government is already generous. And the state of Missouri has indicated it will assist communities in paying the local share.

The estimated total buyout cost includes $1 million for the purchase of the properties, $325,000 for demolition and $60,000 to move 10 families out of flood-prone rental homes.

Why not look for ways to take all the money and run?

Because sometime, somewhere people have to take a stand on out-of-control spending at the federal level. The federal government is awash in red ink, and it is everyone's responsibility to combat the deficit. The easy counter-argument is often repeated: If we don't take the money, someone else will. But if someone else makes a stand too. That is what it is going to take: prudent people across a nation.

It should hurt a little to take these handouts. It should make people stop and think about spending the government's money. That is the problem with free medical care programs. If it doesn't cost, people will go, go, go to the doctor for the slightest excuse. If cost-sharing is required, however, in the form of deductibles or co-payments, users are more likely to weigh the needs. Taxpayers and governments must learn to spend federal and state money like it was our own, because it is our money. Only then will government become more frugal.

Besides, Cape Girardeau isn't the only city lining up for buyout assistance. The small town of Commerce in northern Scott County has applied for $1.7 million in federal and state money to buy 72 houses and vacant lots in the flood-prone area. Unlike Cape Girardeau, Commerce can ill-afford a whopping local share. The town budget is about $1,200 a year, with all revenue coming from real estate and personal property taxes. Compare that to Cape Girardeau's annual budget of $55 million.

In all, about 20 to 30 communities are expected to apply for buyout money. The Federal Emergency Management Agency has allocated $3 million for buyouts in Missouri in the aftermath of spring flooding. State officials have indicated there won't be enough federal and state funds to go around. If Cape Girardeau puts up a local share, the city may move up the list for buyout approval.

The Cape Girardeau City Council should reconsider its local share before submitting its buyout application by Aug. 25.