House Passes Massive Stimulus Package (Courant)
http://www.courant.com/news/nationworld/hc-stimulus0129.artjan29,0,2194089.story
By JESSE A. HAMILTON |The Hartford Courant
WASHINGTON — – The U.S. House of Representatives voted Wednesday to flood the country with government cash, approving a gigantic spending and tax-cut plan in hopes that it will halt the country’s economic plunge.
The $819 billion bill — approved in a 244-188 vote, largely along party lines — combines spending on infrastructure, energy, water and education projects and a long list of other priorities with a $275 billion tax reduction for much of the population. With an eventual price that could creep closer to $1 trillion, this is one of the most expensive, massive and complex legislative efforts in U.S. history.
Connecticut’s five Democratic House members all voted for the stimulus package, titled the American Recovery and Reinvestment Act.
Connecticut can expect an additional $1.2 billion in federal Medicaid dollars. Because this allocation exceeds what Connecticut usually receives, the state can shift the money it would have spent on Medicaid into other pressing budget needs.
Another significant two-year infusion to the state is $584 million for infrastructure projects, including roads, bridges, clean water and mass transit. The bill’s deadlines call for 75 percent of the money to be designated within 18 months for ready-to-go projects.
Connecticut’s education spending would get a federal influx in several categories, including about $146 million for special education, about $117 million for K-12 school construction and $81 million to help poorer school districts.
And Connecticut would also receive a major “fiscal stabilization” fund of $718 million so that the state can fill in emergency gaps in areas such as public services and education. The Senate is expected to vote on its version of the bill next week. The Senate and House then have to craft a compromise bill, which needs approval by both chambers before it is sent to President Barack Obama. Democratic leaders say they aim to get the bill to the president in about two weeks.
Rep. John Larson, D-1st District, chairman of the Democratic caucus, said that he has had his hands in the legislation around the clock since the election. “This administration has left us in such a deep and cavernous hole,” he said of the former Bush White House. “This is an important economic investment in our people and recovery. It’s the first bold step as we start a long and steady climb out.”
Rep. Joe Courtney, D-2nd District, said that unlike the previous bailout of the financial sector, “This program has a plan.”
Obama said in remarks at the White House, “When it comes to rebuilding our economy, we don’t have a moment to spare. … The workers who are returning home to tell their husbands, wives and children that they no longer have a job and all those who live in fear that their job will be next on the cutting blocks, they need help now, and they’re looking to Washington for action — bold and swift.”
The president said that the stimulus package will save and create between 3 million and 4 million jobs, and Moodys.com economist Mark Zandi said that almost 46,000 jobs would be saved or created in Connecticut. Obama made the point that all of the government’s “investments” can be tracked by the public at www.recovery.gov.
The size of each state’s allocations has largely been determined by the same formulas already in routine use. The amount set aside in the bill for Connecticut is similar to the totals for such states as Alabama, Kentucky, Oklahoma and Oregon — states with similar populations.
Before it gets to municipalities or contractors, most of the stimulus cash must pass through the appropriate state agency. “The money is going through those traditional state and local conduits,” Larson said. For instance, a town that has a road project ready to go will apply for the funds through the state Department of Transportation. The money funneled through the state would start being spent this year. Other money would be channeled more directly to municipalities, including some education funding and federal grants.
Individuals benefit from the bill, too. Most taxpayers in Connecticut — an estimated 1.2 million — would be eligible for a federal tax credit of $500. They would see it in small amounts in their paychecks rather than in a lump-sum check. “It’s designed as a permanent tax cut,” said Rep. Chris Murphy, D-5th District.
While the Senate works on its version of the stimulus, the state has been compiling a list of project ideas. “We’ve received thousands of projects,” said Chris Cooper, spokesman for Gov. M. Jodi Rell. They total in the billions of dollars, he said, although he added, “many of them are not shovel-ready.”
Jesse A. Hamilton is the Courant’s Washington bureau chief. Visit his blog, On Background, at courant.com/background.
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