Almost two months ago we reported on this blog that the new Matanuska Creamery was reportedly having financial problems and was on the verge of asking taxpayers for another handout.
Today, the new dairy -the reason why Governor Palin said she kept Mat Maid open to help farmers transition - is now in serious financial trouble just months after opening and they're back asking for a helping hand from taxpayers.
The new Matanuska Creamery, that opened this spring with $650,000 in taxpayer money from the federal government and was aided with state owned equipment taken from the former Mat Maid dairy, now appears to be headed in the same financial direction as its predecessor. Many of us warned about this economic repeat for a dairy that had no business going into business on the taxpayers dime.
On Friday, the company appeared before the Agriculture Board and sought two loans from the state -- a short-term, one- to three-year loan for $150,000 to help with cash flow, and a long-term, 20-year to 30-year loan for $430,000 to help with paying back debts incurred in getting the business up and running.
The Board voted last night to grant a $630,000 loan as long as the board of the Valley Dairy( DBA Matanuska Creamery) would provide signatures personally guaranteeing the loan as they have no collateral at all. The company has a leased building and leased state equipment.
Attendees say that one of the farmers threw a fit and threatened to take all his cows to the slaughter house.
Now today, there was a notice put out for a teleconference vote for next Friday on removing the "personal guarantee " part of the requirements for the loan.
Why would we remove the personal guarantee requirement before lending taxpayer money to people who are asking for loans because they didn't properly manage their business to begin with?
Could it have been possible that one or more of the farmers made a phone call or two to the appropriate person(s) and now they are asking for a re-vote. Doesn't this sound familar? The only thing that appears to be missing is the governor out in the Valley waving signs to save the diary farmers like she did in June of 2007 when this whole mess began.
What about State Statutes that require many things to qualify for a loan from the Alaska Revolving Loan Fund? Does this board follow no rules? If this group cannot obtain conventional financing, why would the Agriculture Board say okay?
The State escaped from the dairy industry and now it looks like we're about to go back in. I believe this will not be the last money they will ask for; you cannot re-write the rules of dairy economics.
Many have said the Creamery is too far behind in debt and their 1500 gallons a day delivering to 30 stores does not pencil out and they know it. They've created the picture that milk is flying off the shelves for months and they are profitable, but yet their request and their refusal to take personal responsibility for taxpayers money raises serious doubts.
So where is Governor Palin on the issue of using taxpayer money for these bail outs?
During an interview with CNN's Wolf Blitzer, she addressed the current trend of government coming to the rescue of the private sector like the financial industry or the automobile manufacturers.
"But, you know, I'm not going to ignore the debate again that I think needs to lead to the personal responsibility, the management decisions that have been made in some of these companies and corporations that have also led us to where we are."
"But it cannot be assumed again that taxpayers can be looked to for all of the bailouts as more and more corporations, companies, entities, come forward with their hand out"
Tough talk.
Will it apply to her Valley neighbors?
http://www.andrewhalcro.com/sour_milk_why_would_we_pour_a_glassSpeaking of the Devil. Here she is...Poolside.. Acting like a celeb..
Post-election, the former VP nominee strips down and soaks up some rays in Miami. Now with added photos.Posted on 11/14/2008 12:39 PM by Celebuzz Things may not have worked out so well for Sarah Palin in the election, but John McCain's former running mate is already experiencing sunny days again.
The Alaska governor—who caught some heat for her expensive campaign wardrobe—hit the pool in Miami in considerably less ostentatious clothes yesterday, donning a pair of skimpy shorts while basking in the tropical climate of Florida.
The 44-year-old former beauty queen was in town for a gathering of the Republican Governors Association yesterday, where GOP state leaders discussed the challenges facing their party and the country in the coming years.
The eagle-eyed lensmen of Bauer-Griffin captured the former candidate as she rebooted poolside.
The conference was also attended by Texas governor Rick Perry and Missouri gov Matt Blunt. And no, pictures of Perry and Blunt in thongs will not be forthcoming. You're welcome.
http://www.celebuzz.com/short-shorts-pics-sarah-palins-s64391/
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