Fund for local governments keeps top rating

Gov. Nathan Deal and Georgia Treasurer Tommy Hills today (March 22) announced that the nationally recognized credit rating firm of Standard and Poor’s affirmed its highest money market fund rating of AAA for Georgia’s own Georgia Fund 1.

“Georgia continues to demonstrate excellence in terms of AAA ratings,” said Deal. “The success of Georgia Fund 1 is a reflection of our state’s commitment to sound fiscal management, even during the worst of budget crunches.”

Treasurer Hills echoed his sentiment: “I am gratified that Standard and Poor's continues to assign its highest rating to Georgia Fund 1,” said Hills. “This is a clear signal to Georgians that their governmental funds are being invested in adherence with the highest standards of money management."

For the past 30 years the Office of the Georgia State Treasurer has managed and administered a local government investment pool (LGIP) called Georgia Fund 1. The LGIP is available for the short-term investment funds of Georgia’s county and city governments and school boards, co-investing with the state treasury and Georgia’s colleges and universities. Georgia Fund 1 operates like a traditional money market fund for governments providing all investors with safety, liquidity and competitive investment returns.

Georgia Fund 1 is one of the largest LGIP’s in the nation, and for the past 20 years its investment performance has outperformed the benchmark returns for all LGIP’s. More than $8 ½ billion is currently invested in Georgia Fund 1.

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Georgians' Holiday Spending Plans Reflect Current Consumer Mindset

/PRNewswire/ -- While not pulling back to Scrooge-ish extremes, Georgia merchants may again face cautious shoppers this holiday season, according to the latest poll from Georgia Credit Union Affiliates (GCUA).

While about half (52.8 percent) of nearly 6,000 credit union members surveyed statewide said they plan to spend about the same as last year, 44.3 percent indicated that they plan to spend less on the holiday season than in 2009. This statistic appears to reflect a continued trend in austerity around gift-giving, given that 51.2 percent of respondents to GCUA's survey in 2009 said they planned to spend less on the holidays than the previous year.

Backing up the latest poll numbers, data from 39 credit unions statewide shows Georgia consumers have a penchant for bolstering their account balances. During the first nine months of 2010, savings deposits grew by 6.3 percent and checking account balances increased by 11.4 percent.

The poll results and credit union data are included in the latest "Paying Attention" report from GCUA, gauging the mindset of Georgia consumers on economic and personal finance. The report also recaps quarterly lending and saving statistics from credit unions statewide.

"Shoppers who already trimmed their spending in 2009 will be frugal again this year," said Mike Mercer, president and CEO of GCUA. "The poll results appear to bear that out, with just 2.9 percent of respondents saying they plan to spend more this holiday season."

Overall, the poll found that:

* 52.8 percent plan to spend about the same this holiday season as last year, while 44.2 percent plan on spending less. Only 2.9 percent plan on spending more this holiday season than last year.
o In 2009, 51.2 percent said they planned to spend less than the previous year while 45.4 percent planned to spend about the same. 3 percent expected to spend more in 2009 compared to the year before.
* Most shoppers still plan to spend modest amounts on gifts. 43.9 percent of respondents are planning to spend between $100 and $500 while 28.7 percent are planning to spend between $500 and $1,000. In a true turn toward austerity, 16.4 percent said they plan to spend less than $100 in total on gifts this year; conversely, 11 percent plan to spend more than $1,000.
o Last year, 47.9 percent said they planned on spending between $100 and $500 in total, 30.8 percent planned on spending between $500 and $1,000 and 11.4 percent said they were going to spend less than $100, and 9.9 percent planned on spending more than $1,000.
* The majority of respondents (77.8 percent) are planning to pay mostly or completely by cash compared to 17.3 percent who plan to pay using a credit card. 4.9 percent plan to use savings from a Christmas club account or other means.
o In 2009, 75.6 percent said they planned on paying all or mostly by cash compared to 11.8 percent who planned on paying all or mostly by credit card. 12.7 percent said they would pay with savings from a Christmas club account or other means.


Credit Union Data Shows Continued Trend Toward Savings

In addition to the consumer poll, GCUA compiled data from 39 credit unions from across the state representing 90 percent of credit union assets and 82 percent of members in Georgia to gauge current lending and savings trends. The data compare year-to-date figures from the first nine months of 2010 to the same period in 2009. Summarized below, the findings indicate a continued trend toward savings among consumers, while figures for lending varied (all rates are annualized):

* Compared to the same period last year, savings deposits grew by 6.3 percent during the first nine months of 2010 and by 7.1 percent over the past year.
* Checking account balances increased by 11.4 percent between January and September and by 16.5 percent over a 12-month period.
* Money market account balances grew by 23.8 percent during the first three quarters of the year and by 35.6 percent over the previous 12 months.
* New vehicle loan balances decreased by 9.7 percent over the past year; however, balances for used car loans increased more than 7.7 percent in the first nine months of 2010, and 10 percent over the past 12 months.
* First mortgage balances increased by 5.8 percent during between January and September and by 12.5 percent over a 12-month period.
* The number of bankruptcy filings among members rose by 13.8 percent over the past 12 months.


"Credit union members represent a good cross section of middle-class Georgians," Mercer said. "Our latest report shows that Georgia consumers seem to be settling into a routine of conscious saving and cautious spending."

More information is available at www.georgiacreditunions.org or on www.facebook.com/creditYOUnion.

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The Return of the Holiday Layaway

/PRNewswire/ --Layaway may sound like an old-school concept, especially in today's "buy now, pay later" society. But the idea of setting aside products to pay for gradually is making a comeback, and is a great alternative to using credit cards this upcoming holiday season.

"The credit card allows shoppers to buy on impulse without the immediate worry of how to pay for their purchases," said Dorothy Guzek , GreenPath Debt Solutions financial counselor. "Unfortunately, when the credit card bill comes due, consumers are left with a surprise balance they can't afford to pay, because they forgot to keep track of each purchase."

Layaway may be the answer for those who can't afford to pay all at once or who simply want to avoid using credit cards this holiday season. An added benefit is that layaway helps keep prying eyes from gifts and presents before the big holiday celebration.

"Our customers are looking for ways to better manage their spending, while still getting the items they need and want," said Salima Yala , Divisional Vice President of Financial Services for Sears Holdings. "Layaway is a financial tool, much like an interest-free payment plan, that allows them to pay over a set period of time."

In addition to traditional in-store layaway, stores like K-Mart and Sears are offering online layaway programs. Online layaway lets you browse and shop for items on the web, pay over time just as you would with traditional layaway, and then pick up the merchandise in-store.

"Layaway provides customers with innovative ways to shop – and with the launch of online layaway, the younger generation of online shoppers are able to manage their budgets, and shopping needs, in a smarter way," said Yala.

GreenPath Debt Solutions offers the following tips for buying on layaway:

1. Get a copy of the store's layaway policies and staple it to your receipt. You may also find layaway policies on the store's website.
2. Make sure you understand the policies such as schedule of payments, late fee policies, refund and exchange policies, markdowns on sale prices and loss or damage of items while in layaway.
3. Be realistic in what you can afford over time and what you put on layaway.
4. Keep clear and accurate records of payments made (staple them to the original receipt and layaway policy statement) in case you have disputes later.
5. When going to the store to make a payment, use the direct in-out method. Walk into the store and directly to the layaway counter to make the payment and then walk back out to your car. Avoid the urge to shop. Preferably, make your layaway payment online and avoid the stores altogether.
6. Don't forget that, until you pay off the items in layaway, the store has your money and merchandise. If the store goes out of business while you're still paying, you could be out both the cash and goods. So only deal with reputable businesses.


Other stores offering layaway this holiday season include Sears, T.J. Maxx, Burlington Coat Factory, Marshalls and Toys R Us, among others. You many find more stores by searching the Internet.

GreenPath's Guzek reminds shoppers, "Regardless of how you decide to shop this holiday season, make a budget in advance, shop from a list, track your expenses and stick with your original plan."

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Federal Home Loan Bank of Atlanta Utilizes Congressional Authority to Provide More Than $2.2 Billion in Credit Support for Tax-Exempt Municipal Bonds

/PRNewswire/ -- Federal Home Loan Bank of Atlanta (FHLBank Atlanta) today announced that it has utilized authority approved by Congress to provide over 50 letters of credit totaling more than $2.2 billion for non-housing-related tax-exempt bond transactions, stimulating economic development and lowering the cost of borrowing for public finance projects.

The Housing and Economic Recovery Act of 2008 (HERA) authorized FHLBank Atlanta to provide credit support for tax-exempt bonds issued or refunded between July 30, 2008 and Dec. 31, 2010. Traditionally, FHLBank Atlanta provided letters of credit for housing-related and taxable financing, and HERA now permits the support of a wider range of public projects, including economic development, public utility, and healthcare facilities.

FHLBank Atlanta's triple-A credit rating allows local governmental entities to borrow at lower costs while helping to maintain the flow of financing within a tighter credit market. In a typical transaction, FHLBank Atlanta serves as a provider of credit enhancement for the transaction on behalf of its member institutions as they work directly with municipal bond issuers.

Since Aug. 2008, FHLBank Atlanta has provided confirming letters of credit under HERA authority on behalf of 11 member financial institutions to support transactions that include $1.2 million for the Industrial Development Board of the City of Oxford (Alabama) and $108.7 million for the North Carolina Medical Care Commission.

"By lowering the cost of municipal bond transactions, we continue to support economic development activities in these communities during an ongoing period of budget constraints," said Richard A. Dorfman, FHLBank Atlanta President and Chief Executive Officer. "This Congressional authority has provided FHLBank Atlanta with the opportunity to make an important difference in the communities we serve through our member institutions."

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Equifax Data Show U.S. Consumer Payment Trends Continue to Deteriorate

/PRNewswire/ -- Consumer delinquency rates for bankcards, first mortgages and home equity lines of credit again rose month-to-month in November, according to Equifax Inc.'s (NYSE:EFX) monthly Credit Trend Report.

Home mortgages at least 30 days late reached another record of 7.91 percent in November (in total dollars), up from 7.76 percent in October and 7.65 percent the previous month. This record rate is a significant increase over the 5.83 percent rate of November 2008 and the 3.93 percent rate of November 2007.

In addition, home equity lines of credit (HELOC) available to consumers are now an estimated $68 billion lower and the number of accounts is an estimated 855,000 lower than the September 2008 peak of approximately 14.5 million accounts. This represents an improvement from October when outstandings were $77 billion lower and accounts were lower by approximately 934,000. Delinquency rates have crept up from 3.39 percent in October to 3.43 percent in November. These rates far exceed the 2.95 percent rate of November 2008 and the 1.92 percent rate of November 2007.

"The story of 2009 continues to be one of consumer retrenchment and credit tightness as people strive to pay down debt or are forced to abandon it, and lenders more aggressively manage risk in their portfolios," said Dann Adams, president of Equifax's U.S. Consumer Information Solutions.

U.S. consumers reduced their debt by more than five percent or $575 billion from a year ago. First mortgage debt dropped 5.4 percent; credit cards by 7.3 percent and auto loans by 9.5 percent. The declines put overall consumer debt at September 2007, pre-recession levels of about $11 trillion.

Bankcard issuers continued a year-long trend of closing accounts and reducing credit lines. Card risk management programs have accelerated since July of 2008, reducing card credit lines by $803 billion and the number of accounts by 93 million. Delinquency rates for bankcards picked up notably since the end of 2008 in tandem with rising unemployment. The November 2009 60-days-past-due rate of 4.62 percent is almost a full percent higher than the November 2008 rate of 3.76 percent. However, the rate still remains below the peak of 4.79 percent in May 2009.

In addition, the number of bankcard accounts opened in September -- 2.4 million -- was 45 percent lower than September 2008. Year-to-date, the number of new accounts is down 46 percent from the same period in 2008. Also, lenders are being more selective about who they give credit to as the percent of cards issued to those with credit scores greater than 740 grew from about 30 percent in 2007 to almost 51 percent so far this year.

With U.S. home prices declining, originations for home equity lines of credit are also declining. In September of this year (the most recent month that data is available) originations were 75,600, 36% below the September 2008 total of 117,800. Year-to-date 2009 new home equity lines opened -- 761,000 -- were 47 percent below 2008 year-to-date totals of 1.5 million. This continues a trend from 2008 when total originations were 1.7 million lines, 41% below the total for 2007 (2.9 million lines).

Furthermore, home equity lines have primarily been issued to lower-risk consumers. Eighty-one percent of the consumers who received HELOCs in September 2009 were considered low-risk (Equifax Risk Scores of 740 and above) an increase from 66% in September of 2007. In conjunction with declining home prices and home equity, average home equity lines are 25% lower over the past two years, declining from approximately $105,000 to $79,000 today.

"The contraction in home equity lines is a reflection of the credit crunch both consumers and small businesses are facing," said Adams. "Restrictions in this traditional source of financing make finding credit harder than ever."

Regionally, home equity line originations have diminished in states where home price values have been the most volatile, notably California and Florida. California comprised almost 20% of line originations two years ago with nearly 38,000 originations in September 2007 but dropped to second with about 7% or 5182 originations in September 2009. Florida, once the second top state by originations has dropped to ninth.

The dramatic impact of these shifts is illustrated by new credit lines available in California declining from $6 billion in September 2007 to well under $1 billion today.

Data for the Credit Trends Monitor Report is sourced from Equifax's nearly 200 million files of US consumers using credit.

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The Consumer Credit Bureaus are Unraveling American Self-Reliance and Compromising Our Greatest National Assets: The Individual and Small Business

/Standard Newswire/ -- The Consumer Credit Reporting Bureaus, which purport to help lenders
evaluate risk, control the flow of credit and encourage fiscal responsibility, have instead played a significant role in destabilizing the economy and are impeding America's recovery.

It is a predatory system that seizes on financial hardships and turns short-term setbacks into long-term liabilities. For the small business owner, he risks losing not only his business but also his personal livelihood and often a lifetime of investment.

And the nation loses its critical buffer: the once-resilient small business, when 'big business' falters.

"The Consumer Credit Bureaus have been ruthlessly chipping away at small business and are now derailing America's economic recovery. We created the website
www.abolish-the-credit-bureaus.com (http://rs6.net/tn.jsp?et=1102862490430&s=13633&e=001-W_WIUx6oUMs-HrxjHW-kUMAKm-mqGf8-RqK0quO-dbijcIIobiKZ5H55jw28xFYz0vX66C5COpZBuxbiFlL30CbIO4k32wakPqjbtyOvY80th7xxAqN3_ozoDI3Pjaq1cd--vN5l44=), Video-short and Petition as vital tools for change; including examining recent comments by President Obama and Federal Reserve Chairman Bernanke," says small business owner, Deborah Fineout-Launey, of marketing firm LHH&F.

"Second mortgages, personal credit cards, large personal guarantees and the Consumer Credit Score should not be the tools for corporate lending. A national summit on small business is meaningless without lending reform," says Ms. Fineout-Launey.

When economic setbacks or downturns occur, many in the economy are affected - not because of
credit 'abuse.'

Yet, in this system, the small business owner, working in good faith to stabilize his business and
ride out the economy, finds that:

· A personal debtor's prison quickly arises;
· Leading to usurious fees;
· Loss of essential banking relationships;
· Credit defaults increase;
· Assets, personal and corporate, are stripped;
· Putting all parties' investments in escalating risk

The result is the unmerited loss of viable small businesses, loss of essential tax revenues, rampant unemployment, loss of real estate leases, healthcare, personal livelihoods, home foreclosures, and a dangerously weakened middle class.

"It is time to abolish the Consumer Credit Report and Score from small business lending and, frankly, in general. It reduces the small business owner's significant investment, and the investment of his lenders, to a gamble of epic proportions. It is a matter of moral conscience and economic necessity," she adds.

Robert Launey and Deborah Fineout-Launey are small business owners in New York, committed to drawing attention to the economic fallout created by the Consumer Credit Report and Score in small corporate lending.

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Banks’ Actions on Credit Cards Undermine Consumer Protections

Low- and middle-income households with credit card debt owe, on average, $9,827 on their cards. If you make the minimum monthly payment -- under many agreements 2 percent of the balance or $10 -- at 10 percent interest, it will take you more than 26 years to pay off the balance, including $6,812 in interest payments.

But what if the rate was raised even higher, or if your rate was tacked to the prime rate (currently 3.25 percent). It could take more than a lifetime to pay off that kind of debt.

In May, Congress adopted the Credit CARD Act to protect consumers from capricious rate hikes. Under the act, banks must give consumers at least 45 days notice before raising their rates. And beginning in February 2010, banks cannot raise rates on existing balances unless a consumer is in default.

Just last week, however, House Financial Services Committee chair Barney Frank accused banks of abusing the “grace period” they were given before all the law’s provisions take effect. Unfortunately for consumers, he’s right.

For example, Wells Fargo announced last week it was raising rates on existing accounts by up to 3 percentage points. Other card issuers, including such large banks as Bank of America and JPMorgan Chase, also have been accused of raising rates on balances prior to the law’s effective date.

Additionally, in June, Bank of America and Chase switched many cardholders from fixed- to variable-rate cards. Variable-rate cardholders are not protected from unexpected rate changes under the new law, because rate changes are permitted as the prime rate moves up and down.

Those most likely to be harmed by higher borrowing costs are consumers who are relying on their credit cards to carry them through the economic downturn. According to Démos, a non-partisan research and advocacy organization, most low- and middle-income households with high debt-stress levels -- the ratio of a family’s credit card debt to their annual income -- use their credit cards to pay for unavoidable expenses, such as medical expenses or to cover household essentials after a job loss, not for discretionary items.

Higher rates lead to longer payoff periods and thousands of extra dollars in interest payments. Let’s take the case of the average low- and middle-income households with $9,827 in credit card debt. If they continue to make the minimum monthly payment on that amount but at 13 percent interest plus prime, rather than our previous example of 10 percent interest, it must pay $19,897 in interest payments over the more than 45 years it will take to clear the balance. And because the prime rate is at historically low levels, this example likely presents a best-case scenario.

Many cardholders have responded to the downturn and the higher borrowing costs by reducing their debt. In July, revolving credit, which is largely credit-card borrowing, declined. For many, however, reducing debt during these tough times is not an option.

Moreover, changes in the availability of credit are also making it more difficult for cardholders to protect themselves from the banks’ actions. In the past, cardholders could demand better terms by threatening to take their business elsewhere. Today, this option is limited, because many banks have tightened credit-card approval standards.

Banks may be putting themselves at risk by their actions as well. If consumers are subjected to usurious rates as the prime rate rises, more will inevitably default on their debt. Banks will find it difficult to make up for these losses by further raising rates on consumers who are already stretched to their limits.

Bank of America vowed last week to stop raising interest rates before the February limits take effect, making the announcement as Rep. Franks’ committee met to consider moving up the effectiveness date of the new legislation. But such a promise offers too little, too late for many consumers who have already been harmed.

It is time for banks to rethink their recent moves and for Congress to do more to protect consumers.

By Jamie Lau

Jamie Lau is a research fellow with the Community Enterprise Clinic at Duke Law School.

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A Dozen New Items to Consider When Filing Your 2008 Return

/PRNewswire/ -- First Quarter, 2009 - While the process of filing your return each year is pretty much the same, it will be important to watch the details and consider new options when rounding up your statements of income, figuring out your standard or itemized deductions, subtracting your credits, and making your choices on payment. According to William E. Massey, Senior Tax Analyst for the Tax & Accounting business of Thomson Reuters, "If you just ease into the same routine when doing your 2008 taxes, you may miss out on big tax savings that could result from a number of key changes that first apply for the 2008 tax year."

To help you take advantage of the new tax saving opportunities, he has put together this list of a dozen key items to consider when filing the form 1040 for 2008:

1. Economic stimulus payment. You may have received an economic stimulus payment in 2008, based on your 2007 taxes. If so, don't include it as income on your return. It's not taxable. If you didn't receive a payment, you may be eligible for the recovery rebate credit, as explained below. You may even qualify for that credit if you did receive an economic stimulus payment.

2. Recovery rebate credit. This credit is figured like last year's economic stimulus payment, except that the amounts are based on tax year 2008 instead of tax year 2007. The maximum credit is $600 ($1,200 if married filing jointly) plus $300 for each qualifying child. You may be able to take this credit only if you did not get an economic stimulus payment, or your economic stimulus payment was less than $600 ($1,200 if married filing jointly for 2007) plus $300 for each qualifying child you had for 2008.

Massey notes, "Many individuals may have received a zero or reduced economic stimulus payment because of the phase out rules. Under those rules, the amount of an economic stimulus payment (both the basic and the child's amount) was reduced by 5% of a taxpayer's adjusted gross income (AGI) above $75,000 ($150,000 for joint returns). Since the time when IRS first started sending out economic stimulus payments, economic conditions have drastically worsened. As a result, many individuals who lost all or a portion of their economic stimulus payment because of the phase out rules may now be in a position to claim a recovery rebate credit on the 2008 return they file in 2009. This would be relevant to a taxpayer who, for example, experienced a job layoff, cutback in hours or reduction of salary. A recovery rebate credit may also be allowed on account of a child being born in 2008 or to someone first entering the workforce in 2008."

3. Withdrawal of economic stimulus payment from certain accounts. You may have opted to have your economic stimulus payment directly deposited to a tax-favored account, such as an IRA, and you now realize you need the money. Don't worry about being penalized for taking the payment back. If you withdraw it by the due date of your return (including extensions), the amount withdrawn will not be taxed and no additional tax or penalty will apply. For stimulus payments deposited into a Coverdell education savings account (CESA), the withdrawal can be made by the later of the above date or May 31, 2009.

4. Alternative minimum tax (AMT) exemption amount increased. For 2007, you may have owed AMT or come close to owing it. That's the added tax that arises when your income is refigured in a special way to tax you on certain items that aren't taxed under the regular rules and to deny certain deductions that are allowed under the regular rules. Some individuals may not be hit with the tax for 2008 because the AMT exemption has increased to $46,200 ($69,950 if married filing jointly or a surviving spouse; $34,975 if married filing separately).

5. Standard deduction increased by real estate taxes. Suppose you own a home and pay real estate taxes but don't have enough total deductions to be able to itemize. There is good news for you. You can increase your standard deduction by the state and local real estates taxes you paid, up to $500 ($1,000 if married filing jointly).

6. Standard deduction increased by net disaster loss. There have been many natural disasters in 2008. If you were one of the unfortunate individuals who was victimized by a hurricane, flood, fire or other natural disaster last year, there is some new tax help for you. You can increase your standard deduction by your net disaster loss. This amount is your personal casualty losses from a federally declared disaster in a disaster area less any personal casualty gains from it.

7. First-time homebuyer credit. There's a new credit for "first-time" homebuyers. Actually, that term is misleading because, as we demonstrate below, you may qualify even if you previously owned a home. Qualified homebuyers can subtract the credit amount from their federal income tax when they buy the home and even get a refund if the credit exceeds the tax. However, they are then required to pay the credit back over 15 years. The result is that the credit resembles an interest-free loan that must be repaid to the government. Here are the details:

-- The home must be located in the U.S. and must be your principal
residence (main home). You (and if married, your spouse) must not have
owned another principal residence in the U.S. in the three-year period
before purchasing the new home. Thus, the home doesn't literally have
to be your first home.
-- The home must have been purchased from April 9, 2008 through June 30,
2009, inclusive.
-- A special rule allows taxpayers who purchase a principal residence in
the first six months of 2009 to treat the purchase as if made on
December 31, 2008. This allows the taxpayer to claim the credit for
2008 rather than 2009.
-- The credit is equal to 10% of the price paid for the home, up to a
maximum of $7,500. The $7,500 maximum credit applies both to
individuals and married couples filing a joint return. A married
individual filing separately can claim a maximum credit of $3,750.
-- The credit is phased out for individual taxpayers with modified
adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and
$170,000 for joint filers) for the year of purchase. Taxpayers with
modified AGI over $95,000 ($170,000 for joint filers) can't claim the
credit.
-- In the second year after purchase, taxpayers who took the credit must
start paying back the credit in equal installments over 15 years, with
no interest charge.
-- No credit is allowed if: the taxpayer or the taxpayer's spouse was
ever entitled to a D.C. homebuyer credit; the home purchase was
financed through tax-exempt mortgage revenue bonds; the taxpayer is a
nonresident alien; or the taxpayer disposes of the residence (or it
ceases to be a principal residence) in the year of purchase.



8. Rollovers to Roth IRAs. Subject to conditions, you can roll over distributions from an eligible retirement plan to a Roth IRA. The rollover is not tax-free. But with lowered account values, the tax may not be onerous. Also, you may be able to use other available tax breaks to eliminate or reduce the tax arising from the rollover. "You may be thinking, why would I want to do something that causes me to pay tax? You would do this to gain the advantages of a Roth IRA," says Massey.

9. Standard mileage rates. The 2008 rate for business use of one's vehicle is 50 1/2 cents a mile (58 1/2 cents a mile after June 30, 2008). The 2008 rate for use of one's vehicle to get medical care or to move is 19 cents a mile (27 cents a mile after June 30, 2008).

10. Personal exemption and itemized deduction phaseouts reduced. Taxpayers with adjusted gross income above a certain amount may lose part of their deduction for personal exemptions and certain itemized deductions. The amount by which these deductions are reduced in 2008 is only 1/2 of the amount of the reduction that otherwise would have applied in 2007.

11. Tax rate on qualified dividends and net capital gain reduced. The 5% tax rate on qualified dividends and net capital gain that applied for 2007 is reduced to zero for 2008.

12. Tax on child's investment income. Form 8615 is required to figure the tax for a child with investment income of more than $1,800 if the child: (1) was under age 18 at the end of 2008; (2) was age 18 at the end of 2008 and did not have earned income that was more than half of the child's support; or (3) was a full-time student over age 18 and under age 24 at the end of 2008 and did not have earned income that was more than half of the child's support.

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Money Management Tips for the Newly Unemployed

PRNewswire/ -- With the nation's unemployment remaining high, Consumer Credit Counseling Service (CCCS) of Greater Atlanta today reminds people who have lost their jobs to continue paying their bills on time and managing their credit wisely during this difficult period.

Managing your credit during unemployment is critical since having good credit is a requirement for some jobs. "Some people have the professional and education background for a new position, but may have an inability to pay bills on time," says Mechel Glass, CCCS of Greater Atlanta's director of education. "Failing to manage your finances during unemployment could affect your credit report and hurt your chances of landing a new job."

As part of its education mission, the national nonprofit credit counseling agency teaches classes on money management. Below are some money management tips to help people through a period of unemployment, as well as long-term tactics to implement once they have a new job.

Short-Term Money Management Tips

People who have recently lost a job should determine if they are eligible for unemployment benefits from their state Department of Labor. While state laws vary, a person is often eligible for benefits as long as they have not received a severance package from their employer or receive retirement income.

Once you have lost a job, consider the following tactics:
-- Make looking for a new job your full-time job. It may take several
months for people in some professional and financial services to find a
new job. Each day you need to network with friends and former
colleagues, look for jobs online and apply for new positions.


Plenty of assistance is available. For example:
-- Contact Angel Food Ministries to obtain food at the lowest possible
cost. The organization can be reached at 1.877.366.3646 or
angelfood@angelfoodministries.com.
-- Call United Way at 211 to find out about other low-cost services, such
as day care.
-- If you are paying off a student loan, contact the financial company
servicing the loan to find out if you can defer or reduce your
payments.
-- Contact the financial company servicing your automobile loan to see if
you can make a similar arrangement.
-- Make at least the minimum monthly payments on your credit card
accounts. If that is impossible, contact your lender, explain your
loss of income and advise them when you will be able to resume making
payments.
-- If you cannot make your mortgage payment, contact a mortgage counselor
at 1-888-995-HOPE.
-- Consider downsizing your lifestyle by reducing expenses such as club
and gym memberships, cable television, bottled water and movies. Find
ways to reduce "everyday" expenses, such as telephone use and dining
out at restaurants. For example, families with cell phones for each
person may not need a land line and cooking all meals at home could
easily save a family hundreds of dollars each month.


Long-Term Money Management Tips

Many people now unemployed formerly worked in high-income professional jobs, such as those in the mortgage, real estate or securities industries, and may not find a new job paying as much money. They should consider a change in their lifestyles to meet their financial obligations in the future. Here are some tips to do that:

-- Develop a new, realistic budget that will enable you to pay for
essential expenses and bills before any extra or luxury items. Consider
developing a budget so you can live on 70 percent of your new income,
with the remaining 30 percent used for savings and investments.
-- Consider selling your car, especially if you have a high monthly
payment, and purchase a less expensive model with smaller monthly
payments.
-- If it's difficult to make your mortgage payment each month and you can
live in a smaller home, consider putting your home up for sale. While
home prices are depressed, it may be a better long-term solution to
live in a home you can afford.

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Wall Street Bail Out and the Credit Card Industry

24-7-- It almost sounds like a waste of time to spend my days writing about the Wall Street bailout. With every media outlet in the world zeroed in on our economy and the socio political ramifications that would ensue, should a bailout not occur. Let's be clear, it's a bailout, not a loan or some other disarming term. The credit card industry is already and will be profoundly affected for years to come because of this meltdown; the question to merchants and cardholders is how to keep that facet of the credit industry moving ahead without too much heartache for both parties.

As I'm stroking keys in my office, acquiring banks are contemplating risk as it pertains to their customer's available credit. This type of hard look at your available card balance and if they want to decrease it or take it away from you all together is the front line of the credit crunch that consumers will likely see in the months to come. My intent isn't to alarm anyone, because this may not come to fruition, but if our economy were to enter a credit freeze, the first fat to be trimmed will likely be available card balances. Why? Because it's the easiest way to decrease potential future loss. As banking institutions consolidate, go under and fear becoming under government control; they need to eliminate risk as much as possible. This is really an easy mathematical calculation; multiply the number of cardholders by their available balance and you'll have the sum of their exposure in an economic crisis.

If the government bails out these and other banks on toxic loans and bad debt, it's unlikely that delinquent credit card debt will be a part of the equation. As it appears today, defaulted mortgages, auto loans and business loans will get much of the attention, making the credit card divisions of these lending institutions in the step children of the bailout. As this is a scary concept to credit card holding Americans that often use their cards to float their monthly expenses; this halt to credit affects merchants and the global economy even more. Just as the inability to use a credit card on a daily basis and the need for cash is an inconvenience at best; for businesses, it can cripple them in both the short and long term. Ecommerce merchants that depend on credit cards for roughly 99% of their transactions would be nearly out of business immediately. Again, we're not saying that this will happen; however this is a very real card on the table of banks that can be played at any time.

Shortly after the ecommerce bubble had burst and businesses had found it harder to process customer credit cards at a fair rate, many found it easier and cheaper to process their daily transactions overseas. Non-domestic or offshore credit card processing isn't for illegal and illicit online businesses, like we all used to think. Today, with so many ecommerce merchants selling globally, international merchant accounts are very normal and often offer low rates, better security and services that many US domestic banks may only offer for a fee. While our economy is looking bleak, the global banking industry has proven in the past and may have to prove once again that working together can be better than domination.

Sager G. Loganathan is a freelance Search Engine Optimization writer specializing in the banking and finance industry. Sager Loganathan, a United States Marine Corp Veteran, has a Bachelor of Arts degree in Communications from the State University of New York at Buffalo.

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Although $700 Billion Bail-Out is Only 'First Step' on Long Road to Repair Financial Markets, CornerCap Sees Opportunities for Smart Investors

PRNewswire/ -- Although the $700 billion bail-out legislation signed into law earlier this afternoon by President Bush should help set an orderly process for disposing mortgage assets, it is at best a first step to allow for stability and recovery of the nation's financial markets says Atlanta-based CornerCap Investment Counsel's chief investment officer, J. Cannon Carr, Jr.

Writing for the firm's quarterly newsletter, Carr says that even with the government's plan, credit markets are likely to remain tight until home prices and debt levels fall to rational levels.

"That will take time," Carr says. "Only the market can stabilize home prices." Moreover, with extreme risk aversion among lenders, Carr still anticipates a difficult year ahead for the economy.

"Despite the uncertain market, this is not a time for broad selling," Carr notes. "In fact, there are real opportunities available for the patient and disciplined investor."

The full text of Carr's commentary is available online and may be downloaded at no cost from www.cornercap.com/library/Newsletters/n2008fall.pdf .

Carr points out that the nation has experienced 10 recessions since 1945. In all but the most recent recession (2001) stocks slid as the economy slowed, but began their assent before the recession ended.

"Recognizing that it is impossible to call a market bottom, we believe the probabilities are in our favor and now is the time to take advantage of some increasingly attractive opportunities to make selective buys," Carr said.

His firm began increasing its exposure to consumer stocks earlier in the year, and now sees opportunities in Industrials and Basic Materials stocks, which are among the hardest hit on recession fears.

"While there are still potential land mines out there, a healthy balance sheet and flexible cost structure are keys to helping determine which stocks can weather the storm," Carr said.

According to Carr the nation's financial system cracked due to two issues: too much debt and falling housing prices. "Once the housing process stabilizes, the financial system can more accurately price transactions, and more importantly, evaluate asset risk and debt obligations," Carr said.

What started as "apparently" isolated problems in subprime mortgages over a year ago has mounted to a crescendo of scary news about the health of the U.S. financial system and the global economy Carr writes.

Even if the government successfully plugs the holes in the nation's financial dam, the pressure causing the fissures must still drop before the dam can truly hold, Carr says.

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Statement by Gannett on Credit Watch Action by Standard & Poor’s

(BUSINESS WIRE)--Standard & Poor’s Ratings Services today placed Gannett’s long and short term credit ratings on credit watch, with negative implications.

Gannett has continued to fund itself in the commercial paper market despite current market disruptions over the past few weeks. As a prudent liquidity measure in light of the ongoing credit market dislocations, Gannett partially drew down on its committed revolving credit facilities sufficient funds to cover all of its commercial paper obligations outstanding. This action was taken prior to -- and was completely unrelated to -- Standard & Poor’s actions today.

Irrespective of any actions Standard & Poor’s may take in the future, Gannett continues to generate substantial cash flow and also has significant untapped availability under its $3.9 billion of committed revolving credit facilities, far in excess of our total commercial paper obligations.

“Our underlying fundamentals remain strong and we continue to be a solid investment grade company,” said Craig A. Dubow, chairman, president and chief executive officer.

Gannett Co., Inc. (NYSE:GCI) is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes 17 daily paid-for titles, approximately 300 weekly newspapers, magazines and trade publications, and a network of award-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

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Tri-S Security Announces Amendment to Credit Facility; Potential Annual Savings Approximately $975,000

PRNewswire-FirstCall/ -- Tri-S Security Corp. (NASDAQ: TRIS) , a provider of security services and equipment for government and private entities, today announced an amendment to its credit facility with its senior lender. The amendment reduces the monthly over-advance fee payable by the company on its highest daily over-advance from 2.25% to (a) 1.25% through December 31, 2008, and (b) 1.75% thereafter. The company estimates that this fee reduction will save the company approximately $975,000 annually and will have a major impact on both cash flow and future earnings.

In addition, the amendment extends the maturity date of the $2.5 million term loan provided under the credit facility an additional year, from March 2009 to March 2010. With this extension, the term loan will move from a current to a long-term liability. This extension will improve various financial ratios and gives the company eighteen months before the term loan becomes due.

Pursuant to the amendment, the company issued to its senior lender a warrant to purchase 125,000 shares of common stock at an exercise price of $1.27 per share, which is 110% of the closing sales price of the common stock on the day the amendment was signed.

The company is conducting an extensive review of its operations, including its operating facilities and corporate headquarters, with the intention of developing initiatives to further reduce general and administrative expenditures. These initiatives will be implemented once the review has been completed, and the company believes that these initiatives will have an immediate effect on both cash flow and future earnings.

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