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Could a line item in President Obama's budget kill tax-funded stadium deals?




U.S. President Barack Obama speaks at the Department of Homeland Security about the administration's fiscal year 2016 budget request released on February 2, 2015 in Washington, DC.
U.S. President Barack Obama speaks at the Department of Homeland Security about the administration's fiscal year 2016 budget request released on February 2, 2015 in Washington, DC.
Win McNamee/Getty Images

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For years, cities have helped pay for new sporting arenas with public funds, with financing coming with the promise of new jobs and a cash boost to the local economy.

But that's rarely the case and the return on the millions of dollars invested isn't always so great, and President Obama wants to put an end to this with an item in his new budget. 

Elaine Povich is a Senior Writer at Stateline and she's been writing about the issue.

"An obscure item in the president’s new budget would put an end to the longstanding practice of states and cities using tax-exempt bonds to finance professional sports arenas, a practice that costs the U.S. Treasury $146 million, according to a 2012 Bloomberg analysis.

"The proposal comes as many team owners are pressing cities and states for new facilities, with some threatening to move elsewhere if they don’t get them. State and local officials are wary of seeing pro teams depart, taking prestige and tax revenue with them. But they are also taxpayer-minded and budget-conscious."

Povich joins A Martinez for a discussion about the topic.