RESCUE PROPOSALS $10 billion in tax-exempt bonds to refinance subprime loans. $4 billion to local governments to buy foreclosed properties.

March 10 (Bloomberg) -- California, New York City and the owner of the World Trade Center site will replace auction-rate debt this week, as lawmakers hold hearings on how turmoil in the credit market is raising costs for local governments.

March 10 (Bloomberg) -- California, New York City and the owner of the World Trade Center site will replace auction-rate debt this week, as lawmakers hold hearings on how turmoil in the credit market is raising costs for local governments.

NEW YORK -- MBIA Inc. reported write-downs of $3.5 billion on souring credit markets Thursday, exacerbating concerns that rising costs could squeeze local governments as well as slow any recovery for big banks.

Local governments face off with telecom and tech firms as ban on levies nears expiration. A monthly phone bill of $50 now includes as much as $10 in taxes. And some in Congress warn that consumers soon could be hit with similar assessments for high-speed Internet access.