Draft Economic Stimulus Bill breakdown

The House of Representatives has developed a draft plan for $825 billion in federal spending and tax cuts to revive and rejuvenate the failing economy. The bill places priority on energy, education, health care and creating jobs.

The legislation calls for federal spending of roughly $550 billion and tax cuts of $275 billion over the next two years.

Our goals with this bill are immediate job creation in the short term and continuing job creation over the long haul.

Aid to workers

With unemployment rising, and applications for various forms of federal aid keeping pace, the legislation calls for increased spending on food stamps, unemployment insurance and job training. It also proposes an increase in Pell Grants for college students of $500.

Four billion dollars for job training including formula grants for adult, dislocated worker, and youth services (including $1.2 billion to create up to one million summer jobs for youth) was identified.

The needs of workers also will be met through dislocated worker national emergency grants, new competitive grants for worker training in high growth and emerging industry sectors (with priority consideration to “green” jobs and healthcare), and increased funds for the YouthBuild program. Green jobs training will include preparing workers for activities supported by other economic recovery funds, such as retrofitting of buildings, green construction, and the production of renewable electric power.

The bill allocates $300 million to upgrade job training facilities serving at-risk youth while improving energy efficiency.

States will receive $500 million for formula grants for construction and rehabilitation of facilities to help persons with disabilities prepare for gainful employment.

$500 million is allocated for programs to match unemployed individuals to job openings through state employment service agencies and allow states to provide customized services. Funds are targeted to states with the greatest need based on labor force, unemployment, and long-term unemployed rates.

A total of $27 billion will be used to continue the current extended unemployment benefits program – which provides up to 33 weeks of extended benefits - through December 31, 2009 given rising unemployment.

Additionally, $9 billion will increase the current average unemployment insurance benefit from roughly $300 per week, paid out of State trust funds, by $25 per week using Federal funds, through December 2009. There are currently 5.3 million workers receiving regular UI and an additional 1.9 million receiving extended benefits.

Health Care

The bill will allocate $87 billion to help the states meet the rising cost of providing health care for the poor, and another $39 billion to subsidize coverage by out-of-work wage-earners who cannot afford the cost of their employer-covered health care.

Education

More than $100 billion is ticketed for education, including money for school districts to shield them from the effects of state cutbacks in services.

Estimates for local school districts are as follows:

Belton: FY2009 $1,608,000 FY2010 $973,300 TOTAL $2,581,200

Center: FY2009 $1,494,500 FY2010 $752,800 TOTAL $2,247,200

Grandview: FY2009 $2,297,300 FY2010 $1,163,600 TOTAL $3,460,900

Hickman Mills: FY2009 $4,533,200 FY2010 $2,206,200 TOTAL $6,739,400

Independence: FY2009 $3,826,500 FY2010 $2,255,100 TOTAL $6,081,600

Kansas City: FY2009 $33,984,400 FY2010 $14,633,600 TOTAL $48,618,000

Lee’s Summit: FY2009 $2,909,000 FY2010 $2,190,400 TOTAL $5,099,400

Lone Jack: FY2009 $93,500 FY2010 $70,900 TOTAL $164,400

Raymore-Peculiar: FY2009 $1,050,100 FY2010 $738,700 TOTAL $1,788,800

Raytown: FY2009 $3,084,200 FY2010 $1,823,500 TOTAL $4,907,600

Housing

Five billion dollars has been allocated for building repair and modernization, including critical safety repairs. Every dollar of Capital Fund expenditures produces $2.12 in economic return. $4 billion of the funds will be distributed to public housing authorities through the existing formula and $1 billion will be awarded through a competitive process for projects that improve energy efficiency.

An additional $1.5 billion to help local communities build and rehabilitate low-income housing using green technologies is in the draft. Thousands of ready-to-go housing projects have been stalled by the credit crunch. Funds are distributed by formula.

The Neighborhood Stabilization Program will get an increase of $4.2 billion to help communities purchase and rehabilitate foreclosed, vacant properties in order to create more affordable housing and reduce neighborhood blight.

And for those hardest hit among us, $1.5 billion is allocated for the Emergency Shelter Grant program to provide short term rental assistance, housing relocation, and stabilization services for families during the economic crisis. Funds are distributed by formula.

Tax Relief

The draft calls for a tax credit of $500 per worker and $1,000 per working couple.

Businesses would be able to reduce their taxes through a provision that expands their ability to write off current losses against past profits, and by accelerating the depreciation of new plants and equipment.

First-time homeowners also would get a break. The bill eliminates the requirement for them to repay a new $7,500 tax credit created in a housing measure that passed last summer.

Energy

Funds for energy-related programs can be seen throughout the bill top-to-bottom.
Included is $32 billion to upgrade the nation's electrical distribution system, more than $20 billion in tax cuts to promote the development of alternatives to oil fuels, and billions more to make public housing, federal buildings and modest-income homes more energy efficient.
Construction

The bill, as written, calls for $30 billion for highway construction and $10 billion for mass transit and rail. Missouri will receive close to one billion dollars for fiscal year 2009.

In Missouri it breaks down to roughly:

Highways and Bridges:$688,319,889
Transit:$74,770,021
Fixed Guideway Modernization: $11,631,300
Clean Water: $160,919,352
TOTAL INFRASTRUCTURE: $935,640,562

Additional State Allocations

Additionally the following 13 programs receive direct allotments from the bill, increasing the allocation to Missouri an additional $1.2 billion over the next 2 years:

-State Fiscal Stabilization Fund
-Title I (Disadvantaged Students)
-Individuals with Disabilities Act (Special Education)
-Education Technology State Grants
-Education Modernization, Renovation and Repair (both K-12 and Higher Education)
-Pell Grants
-Head Start
-Child Care & Development Block Grant
-Employment and Training
-Community Services Block Grant
-Low-Income Home Energy Assistance (LIHEAP)
-Elderly Nutrition Services
-Preventive Health and Health Services Block Grant

Missouri allocation for the above programs:
FY 2009 $608,519,000
FY 2010 $608,519,000
TOTAL $1,217,038,000

We are looking to vote next week on the bill. The Senate is operating on a similar timetable and I hope that we will have a final bill ready for the President’s signature by Presidents' Day.