It was my pleasure to announce this week that over $9 million in grants have been awarded to hire police in Missouri’s Fifth District. The grants come as part of the American Recovery and Reinvestment Act, which allocated $1 billion to fund the hiring and rehiring of law enforcement officers all across the country. Nationwide, the announcement will fund 4,699 officers for three years. Kansas City was awarded $8.3 million to hire 50 officers. Independence received $543,393 to hire 3 officers and Sugar Creek received $158,847 to hire one additional officer. Police departments receiving the grants will then be required to retain the grant-funded positions for a fourth year.
While I was mayor of Kansas City, I helped write the original Community Oriented Policing Services (COPS) hiring grants program with President Bill Clinton. After its passage, our nation experienced a significant drop in crime rates.
Almost 12 years ago, I remember standing with Mayor Rudy Giuliani and President Bill Clinton as he described the very first COPS program. The program encouraged mayors and police chiefs from around the nation to build a partnership with the federal government. I can tell you first-hand, the partnership really worked. This week’s announcement adds 50 more police to Kansas City’s streets at a time when they are desperately needed. To put that in perspective, in the first 10 years Kansas City was eligible for the COPS program we were able to hire 100 police officers. In other words, this is five times the number of officers we were ever able to hire in a single year before. As is always the case, a downturn in the economy requires cities to cut their budgets just as those same economic troubles lead to an increase in crime. This week’s award, and the cadet class that can be saved because of it, will go a long way toward making our streets safer.
The Recovery Act grants, will be administered by the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) through the federal agency’s COPS Hiring Recovery Program. These funds will provide much needed financial support to state, local and tribal governments, and will help the nation’s law enforcement agencies add and retain the workforce needed to fight crime more effectively through community policing. The Department of Justice received over 7,200 applications for more than 39,000 officer positions, representing a total of $8.3 billion in requested funding
Showing posts with label Economic Stimulus. Show all posts
Showing posts with label Economic Stimulus. Show all posts
Friday, July 31, 2009
Friday, February 20, 2009
President Obama’s Plan for Housing
On Tuesday, the President proposed a new plan to deal with the underlying housing crisis plaguing our economy. The plan both helps those at risk of foreclosures and provides assistance to those who would like to refinance their homes at a lower interest rate. The White House posted this list of questions and answers that homeowners might have about President Obama's new mortgage plan. I hope you find it helpful.
Borrowers Who Are Current on Their Mortgage Are Asking:
What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?
Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.
I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.
How do I know if I am eligible?
Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.
I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
As long as the amount due on the first mortgage is less than 105 percent of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
Will refinancing lower my payments?
The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.
What are the interest rate and other terms of this refinance offer?
The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.
Will refinancing reduce the amount that I owe on my loan?
No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?
To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.
When can I apply? Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.
What should I do in the meantime? You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:
-information about the gross monthly income of all borrowers, including your most recent pay
-stubs if you receive them or documentation of income you receive from other sources
your most recent income tax return
-information about any second mortgage on the house
-payments on each of your credit cards if you are carrying balances from month to month, and
-payments on other loans such as student loans and car loans.
Borrowers Who Are at Risk of Foreclosure Are Asking:
What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?
The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
Do I need to be behind on my mortgage payments to be eligible for a modification?
No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.
How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?
In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.
I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan? No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.
I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible? Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.
I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?
Only the first mortgage is eligible for a modification.
I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe? The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.
I heard the government was providing a financial incentive to borrowers. Is that true?
Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.
How much will a modification cost me?
There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.
Is my lender required to modify my loan? No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.
I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?
Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.
How do I apply for a modification under the Homeowner Affordability and Stability Plan?
You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.
What should I do in the meantime? You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available.
This includes:
-information about the monthly gross income of your household including recent pay stubs if you -receive them or documentation of income you receive from other sources
your most recent income tax return
-information about any second mortgage on the house
-payments on each of your credit cards if you are carrying balances from month to month, and
-payments on other loans such as student loans and car loans.
My loan is scheduled for foreclosure soon. What should I do?
Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.
Borrowers Who Are Current on Their Mortgage Are Asking:
What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?
Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.
I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.
How do I know if I am eligible?
Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.
I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
As long as the amount due on the first mortgage is less than 105 percent of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
Will refinancing lower my payments?
The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.
What are the interest rate and other terms of this refinance offer?
The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.
Will refinancing reduce the amount that I owe on my loan?
No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?
To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.
When can I apply? Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.
What should I do in the meantime? You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:
-information about the gross monthly income of all borrowers, including your most recent pay
-stubs if you receive them or documentation of income you receive from other sources
your most recent income tax return
-information about any second mortgage on the house
-payments on each of your credit cards if you are carrying balances from month to month, and
-payments on other loans such as student loans and car loans.
Borrowers Who Are at Risk of Foreclosure Are Asking:
What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?
The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
Do I need to be behind on my mortgage payments to be eligible for a modification?
No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.
How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?
In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.
I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan? No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.
I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible? Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.
I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?
Only the first mortgage is eligible for a modification.
I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe? The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.
I heard the government was providing a financial incentive to borrowers. Is that true?
Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.
How much will a modification cost me?
There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.
Is my lender required to modify my loan? No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.
I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?
Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.
How do I apply for a modification under the Homeowner Affordability and Stability Plan?
You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.
What should I do in the meantime? You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available.
This includes:
-information about the monthly gross income of your household including recent pay stubs if you -receive them or documentation of income you receive from other sources
your most recent income tax return
-information about any second mortgage on the house
-payments on each of your credit cards if you are carrying balances from month to month, and
-payments on other loans such as student loans and car loans.
My loan is scheduled for foreclosure soon. What should I do?
Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.
Highlighting a “green” stimulus
Congressman Cleaver visits the Hispanic Chamber of Commerce of Greater Kansas City. Pictured from left to right are Greg Walker, owner of Magic Touch; Greg Graves, President of Burns and McDonnell; Dr. Stephanie De La Torre, HCC Board President; Congressman Cleaver; Jeanette Hernandez Pranger, Past HCC Board President; Carlos Gomez, HCC Executive DirectorCongratulations to the Hispanic Chamber
This week I have tried to highlight some of the “green” opportunities that can be found in the President’s stimulus plan.
Yesterday, I spoke to the Hispanic Chamber of Commerce of Greater Kansas City (HCC) to announce the kick-off of the first “green” initiative for the Chamber. The HCC has recently been awarded a grant from MARC Solid Waste Management Division to educate small business on reducing Land Fill waste.
For those communities, like Kansas City’s Latino community, who are forward looking and are not afraid to innovate, exciting times lie ahead. Climate change will shape the next economy. We all need to follow the Hispanic Chamber’s lead and be ready to take advantage of the opportunities that will be available. The new “green economy” can be the tide that raises all ships. I was proud to congratulate the HCC for putting the businesses and people they serve in a position to prosper in the new economy.
Leading the initiative with the Hispanic Chamber are Dr. Hasan Syed, Geosciences Department, University of Missouri-Kansas City; Gary Walker, Magic Touch; and Shelley Armato, Marathon Reprographics. Providing major assistance is Kaye Johnston, former student of Dr. Syed. I wish the Chamber the best of luck, and am looking forward to seeing their progress.
US Green Building Council and “Conversations on the Environment”
This afternoon, in an effort to continue to beat the drum on using the stimulus to move the “green” agenda forward, I spoke to the Kansas City Branch of the U.S. Green Building Council as part of the “Conversations on the Environment” series. The event, at the Anita Gorman Discovery Center, concentrated on the opportunities the challenging economy presents for advancing a “green” agenda.
Several hundred architects, engineers, project managers, construction managers, and those interested in a quality built environment gathered to hear the presentation. I hope that I spurred a few in the crowd to think about how this monumental one time investment can be used to launch us into a brave new “green” world.
Friday, February 13, 2009
Final passage
In the last few weeks, as Congress has worked through the economic stimulus bill, I have tried to include you in the process. I hope it has been helpful. The House passed the bill a few minutes ago 246-183 the Senate has promised action later tonight. The President will have the bill on his desk by President’s Day as he has requested.
It is not a perfect bill. However, as the Chairman of the Congressional Black Caucus’s Task Force on the stimulus package, I can say that the measure is far better coming out of the Conference Committee. Many of the cuts that would have hurt the ability of America’s cities to create jobs have been restored. Like any good compromise, no one is happy, but I feel comfortable that the bill, as voted on, will create or preserve close to 4 million jobs.
One of my many concerns is if saving or creating 4 million jobs will be enough. But in the final analysis, we cannot sit on our hands while the middle class of America is gutted. Nor can we let the perfect be the enemy of the good. People are suffering; the economy is as bad as it has been in more than 70 years. The President has called on us to act and act now.
Last Sunday, over a thousand of our friends who work the line at Claycomo and Fairfax, their suppliers, and car dealers joined me to remind people what is at stake. Each one of them has a family, kids in school or parents to care for. They are our neighbors and, like so many, are not sure if they will have a job tomorrow.
I do not know how Members who will vote “no” this afternoon will go back to their districts and look hard working men and women in the eye who are anxious and hurting and tell them “no”.
The President believes our nation needs this package to pull out of our economic nosedive. After years of an economic policy that did not work and pushed us to the brink, it’s past time to shock our nation’s economic engine back into rhythm. The bill will pass, the President will sign it and then the hard work will begin. We have never been a nation that shies away from hard work — it is time to roll up our sleeves and pick up some shovels.
Missouri details:
· The bill provides a "Making Work Pay" tax cut of up to $800 for 2,270,000 workers and their families, designed to start paying out immediately into workers’ paychecks, as well as tax cuts to spur businesses large and small.
· The bill modernizes roads and bridges to create jobs with an extra $637,121,984 in Missouri and provides nearly $831 million in total infrastructure investments in our state.
· The bill also invests in modernizing schools and making college more affordable with improved Pell Grants for the 138,591 Pell Grant recipients here in Missouri and a higher education tax credit for 74,000 students in our state.
· The bill assists 219,700 Missourians that are out of work and those who have lost their health care.
Below are details of the American Recovery and Reinvestment Plan, as agreed upon by the House and Senate. You can track the effect the stimulus measures are having on the economy at www.recovery.gov
Providing Tax Relief:
“Making Work Pay” Tax Credit. The bill would cut taxes for more than 95% of working families in the United States. For 2009 and 2010, the bill would provide a refundable tax credit of up to $400 for working individuals and $800 for working families. This tax credit would be calculated at a rate of 6.2% of earned income, and would phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 for married couples filing jointly). Taxpayers can receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks, or through claiming the credit on their tax returns. This proposal is estimated to cost $116.199 billion over 10 years.
Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits. The bill would provide a one-time payment of $250 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the U.S. Department of Veterans Affairs. The one-time payment is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $14.225 billion over 10 years.
Refundable Credit for Certain Federal and State Pensioners. The bill would provide a one-time refundable tax credit of $250 in 2009 to certain government retirees who are not eligible for Social Security benefits. This one-time credit is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $218 million over 10 years.
Increase in Earned Income Tax Credit. The bill would temporarily increase the earned income tax credit for working families with three or more children. Under current law, working families with two or more children currently qualify for an earned income tax credit equal to forty percent (40%) of the family’s first $12,570 of earned income. This credit is subject to a phase-out for working families with adjusted gross income in excess of $16,420 ($19,540 for married couples filing jointly). The bill would increase the earned income tax credit to forty-five percent (45%) of the family’s first $12,570 of earned income for families with three or more children and would increase the beginning point of the phase-out range for all married couples filing a joint return (regardless of the number of children) by $1,880. This proposal is estimated to cost $4.663 billion over 10 years.
Increase Eligibility for the Refundable Portion of Child Credit. The bill would increase the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15 percent of the taxpayer’s earned income in excess of $8,500. The bill would reduce this floor for 2009 and 2010 to $3,000. This proposal is estimated to cost $14.830 billion over 10 years.
“American Opportunity” Education Tax Credit. The bill would provide financial assistance for individuals seeking a college education. For 2009 and 2010, the bill would provide taxpayers with a new “American Opportunity” tax credit of up to $2,500 of the cost of tuition and related expenses paid during the taxable year. Under this new tax credit, taxpayers will receive a tax credit based on one hundred percent (100%) of the first $2,000 of tuition and related expenses (including books) paid during the taxable year and twenty-five percent (25%) of the next $2,000 of tuition and related expenses paid during the taxable year. Forty percent (40%) of the credit would be refundable. This tax credit will be subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly). This proposal is estimated to cost $13.907 billion over 10 years.
Computers as Qualified Education Expenses in 529 Education Plans. Section 529 Education Plans are tax-advantaged savings plans that cover all qualified education expenses, including: tuition, room & board, mandatory fees and books. The bill provides that computers and computer technology qualify as qualified education expenses. This proposal is estimated to cost $6 million over 10 years.
Refundable First-time Home Buyer Credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. This proposal is estimated to cost $6.638 billion over 10 years.
Sales Tax Deduction for Vehicle Purchases. The bill provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). This proposal is estimated to cost $1.684 billion over 10 years.
Temporary Suspension of Taxation of Unemployment Benefits. Under current law, all federal unemployment benefits are subject to taxation. The average unemployment benefit is approximately $300 per month. The proposal temporarily suspends federal income tax on the first $2,400 of unemployment benefits per recipient. Any unemployment benefits over $2,400 will be subject to federal income tax. This proposal is in effect for taxable year 2009. This proposal is estimated to cost $4.740 billion over 10 years.
Extension of AMT Relief for 2009. The bill would provide more than 26 million families with tax relief in 2009 by extending AMT relief for nonrefundable personal credits and increasing the AMT exemption amount to $70,950 for joint filers and $46,700 for individuals. This proposal is estimated to cost $69.759 billion over 10 years.
Creating American Jobs:
The American Recovery and Reinvestment Act also provides $311 billion in appropriations, including the following critical investments:
Investments in Infrastructure and Science - $120 billion
Investments in Health - $14.2 billion
Investments in Education and Training - $105.9 billion
Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
Law Enforcement, Oversight, Other Programs - $7.8 billion
Investments in Infrastructure and Science include:
Infrastructure Improvements
$7.2 billion for Broadband to increase broadband access and usage in unserved and underserved areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation. ($6 billion prior to Conference)
$2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard. ($2.3billion prior to Conference)
$4.6 billion in funding for the Corps of Engineers. ($4.5 billion prior to Conference)
$1.2 billion for VA hospital and medical facility construction and improvements, long-term care facilities for veterans, and improvements at VA national cemeteries. ($950 million prior to Conference)
$3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands. (same prior to Conference)
$4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in energy efficiency projects and to improve the repair and modernization of Department of Defense facilities to include Defense Health facilities. ($3.75 billion prior to Conference)
$2.33 billion for Department of Defense Facilities including quality of life and family-friendly military improvement projects such as family housing, hospitals, and child care centers. ($2.1 billion prior to Conference)
$2.25 billion through HOME and the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving. ($1.5 billion prior to Conference)
$1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times. (same prior to Conference)
$1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought. ($500 million prior to Conference)
Transportation
$27.5 billion is included for highway investments ($30 billion prior to Conference)
$8.4 billion for investments in public transportation. ($13 billion prior to Conference)
$1.5 billion for competitive grants to state and local governments for transportation investments. ($3 billion prior to Conference)
$1.3 billion for investments in our air transportation system. ($3 billion prior to Conference)
$9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity Rail. ($1.1 billion prior to Conference)
Public Housing
$4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings. ($5 billion prior to Conference)
$2 billion for full-year payments to owners receiving Section 8 project-based rental assistance. (new)
$2 billion for the redevelopment of abandoned and foreclosed homes. ($4.2 billion prior to Conference)
$1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula. (same prior to Conference)
$250 million is included for energy retrofitting and green investments in HUD-assisted housing projects. ($1.5 billion prior to Conference)
Environmental Clean-Up/Clean Water
$6 billion is directed towards environmental cleanup of former weapon production and energy research sites. (same prior to Conference)
$6 billion for local clean and drinking water infrastructure improvements. ($2 billion prior to Conference)
$1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund. ($800 million prior to Conference)
$1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas. ($1.5 billion prior to Conference)
Science
$1 billion total for NASA. ($600 million prior to Conference)
$3 billion total for National Science Foundation (NSF). (same prior to Conference)
$2 billion total for Science at the Department of Energy including $400 million for the Advanced Research Projects Agency—Energy (ARPA-E). (same prior to Conference)
$830 million total for the National Oceanic and Atmospheric Association (NOAA). ($600 million prior to Conference)
Investments in Health include:
$19 billion, including $2 billion in discretionary funds and $17 billion for investments and incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors’ offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans. ($20 billion prior to Conference)
$1 billion for prevention and wellness programs to fight preventable diseases and conditions with evidence-based strategies. ($3 billion prior to Conference)
$10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities. ($2 billion prior to Conference)
$1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of the Secretary to evaluate the relative effectiveness of different health care services and treatment options. (same prior to Conference)
Investments in Education and Training include:
$53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities. ($79 billion prior to Conference)
$13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential. (same prior to Conference)
$12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever. ($13 billion prior to Conference)
$15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education. (same prior to Conference)
$3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth). ($4 billion prior to Conference)
Investments in Energy include:
$4.5 billion for repair of federal buildings to increase energy efficiency using green technology. ($6.7 billion prior to Conference)
$3.4 billion for Fossil Energy research and development. ($2.4 billion prior to Conference)
$11 billion for smart-grid related activities, including work to modernize the electric grid. (same prior to Conference)
$6.3 billion for Energy Efficiency and Conservation Grants. ($6.9 billion prior to Conference)
$5 billion for the Weatherization Assistance Program. ($6.2 billion prior to Conference)
$2.5 billion for energy efficiency and renewable energy research. ($2 billion prior to Conference)
$2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States. (same prior to Conference)
$6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar projects and for electricity transmission projects. ($8 billion prior to Conference)
$1 billion for other energy efficiency programs including alternative fuel trucks and buses, transportation charging infrastructure, and smart and energy efficient appliances. ($900 million prior to Conference)
Help for Workers and Families Hardest Hit by the Economic Crisis includes:
$19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase the benefit by 13.6 percent. ($20 billion prior to Conference)
Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care. (same prior to Conference)
Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school. (same prior to Conference)
State and Local Law Enforcement:
$4 billion total to support law enforcement efforts. (same prior to Conference)
$555 million to expand the Department of Defense Homeowners Assistance Program (HAP) during the national mortgage crisis. (new)
The American Recovery and Reinvestment Plan provides oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.
Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
Numerous provisions in the bill provide for expedited but effective obligation of funds so that dollars are invested in the economy as quickly as possible.
The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
A special website will provide transparency by posting information about recovery spending, including grants, contracts, and all oversight activities.
State and local whistleblowers who report fraud and abuse are protected.
There are no earmarks in this bill.
It is not a perfect bill. However, as the Chairman of the Congressional Black Caucus’s Task Force on the stimulus package, I can say that the measure is far better coming out of the Conference Committee. Many of the cuts that would have hurt the ability of America’s cities to create jobs have been restored. Like any good compromise, no one is happy, but I feel comfortable that the bill, as voted on, will create or preserve close to 4 million jobs.
One of my many concerns is if saving or creating 4 million jobs will be enough. But in the final analysis, we cannot sit on our hands while the middle class of America is gutted. Nor can we let the perfect be the enemy of the good. People are suffering; the economy is as bad as it has been in more than 70 years. The President has called on us to act and act now.
Last Sunday, over a thousand of our friends who work the line at Claycomo and Fairfax, their suppliers, and car dealers joined me to remind people what is at stake. Each one of them has a family, kids in school or parents to care for. They are our neighbors and, like so many, are not sure if they will have a job tomorrow.
I do not know how Members who will vote “no” this afternoon will go back to their districts and look hard working men and women in the eye who are anxious and hurting and tell them “no”.
The President believes our nation needs this package to pull out of our economic nosedive. After years of an economic policy that did not work and pushed us to the brink, it’s past time to shock our nation’s economic engine back into rhythm. The bill will pass, the President will sign it and then the hard work will begin. We have never been a nation that shies away from hard work — it is time to roll up our sleeves and pick up some shovels.
Missouri details:
· The bill provides a "Making Work Pay" tax cut of up to $800 for 2,270,000 workers and their families, designed to start paying out immediately into workers’ paychecks, as well as tax cuts to spur businesses large and small.
· The bill modernizes roads and bridges to create jobs with an extra $637,121,984 in Missouri and provides nearly $831 million in total infrastructure investments in our state.
· The bill also invests in modernizing schools and making college more affordable with improved Pell Grants for the 138,591 Pell Grant recipients here in Missouri and a higher education tax credit for 74,000 students in our state.
· The bill assists 219,700 Missourians that are out of work and those who have lost their health care.
Below are details of the American Recovery and Reinvestment Plan, as agreed upon by the House and Senate. You can track the effect the stimulus measures are having on the economy at www.recovery.gov
Providing Tax Relief:
“Making Work Pay” Tax Credit. The bill would cut taxes for more than 95% of working families in the United States. For 2009 and 2010, the bill would provide a refundable tax credit of up to $400 for working individuals and $800 for working families. This tax credit would be calculated at a rate of 6.2% of earned income, and would phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 for married couples filing jointly). Taxpayers can receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks, or through claiming the credit on their tax returns. This proposal is estimated to cost $116.199 billion over 10 years.
Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits. The bill would provide a one-time payment of $250 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the U.S. Department of Veterans Affairs. The one-time payment is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $14.225 billion over 10 years.
Refundable Credit for Certain Federal and State Pensioners. The bill would provide a one-time refundable tax credit of $250 in 2009 to certain government retirees who are not eligible for Social Security benefits. This one-time credit is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $218 million over 10 years.
Increase in Earned Income Tax Credit. The bill would temporarily increase the earned income tax credit for working families with three or more children. Under current law, working families with two or more children currently qualify for an earned income tax credit equal to forty percent (40%) of the family’s first $12,570 of earned income. This credit is subject to a phase-out for working families with adjusted gross income in excess of $16,420 ($19,540 for married couples filing jointly). The bill would increase the earned income tax credit to forty-five percent (45%) of the family’s first $12,570 of earned income for families with three or more children and would increase the beginning point of the phase-out range for all married couples filing a joint return (regardless of the number of children) by $1,880. This proposal is estimated to cost $4.663 billion over 10 years.
Increase Eligibility for the Refundable Portion of Child Credit. The bill would increase the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15 percent of the taxpayer’s earned income in excess of $8,500. The bill would reduce this floor for 2009 and 2010 to $3,000. This proposal is estimated to cost $14.830 billion over 10 years.
“American Opportunity” Education Tax Credit. The bill would provide financial assistance for individuals seeking a college education. For 2009 and 2010, the bill would provide taxpayers with a new “American Opportunity” tax credit of up to $2,500 of the cost of tuition and related expenses paid during the taxable year. Under this new tax credit, taxpayers will receive a tax credit based on one hundred percent (100%) of the first $2,000 of tuition and related expenses (including books) paid during the taxable year and twenty-five percent (25%) of the next $2,000 of tuition and related expenses paid during the taxable year. Forty percent (40%) of the credit would be refundable. This tax credit will be subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly). This proposal is estimated to cost $13.907 billion over 10 years.
Computers as Qualified Education Expenses in 529 Education Plans. Section 529 Education Plans are tax-advantaged savings plans that cover all qualified education expenses, including: tuition, room & board, mandatory fees and books. The bill provides that computers and computer technology qualify as qualified education expenses. This proposal is estimated to cost $6 million over 10 years.
Refundable First-time Home Buyer Credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. This proposal is estimated to cost $6.638 billion over 10 years.
Sales Tax Deduction for Vehicle Purchases. The bill provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). This proposal is estimated to cost $1.684 billion over 10 years.
Temporary Suspension of Taxation of Unemployment Benefits. Under current law, all federal unemployment benefits are subject to taxation. The average unemployment benefit is approximately $300 per month. The proposal temporarily suspends federal income tax on the first $2,400 of unemployment benefits per recipient. Any unemployment benefits over $2,400 will be subject to federal income tax. This proposal is in effect for taxable year 2009. This proposal is estimated to cost $4.740 billion over 10 years.
Extension of AMT Relief for 2009. The bill would provide more than 26 million families with tax relief in 2009 by extending AMT relief for nonrefundable personal credits and increasing the AMT exemption amount to $70,950 for joint filers and $46,700 for individuals. This proposal is estimated to cost $69.759 billion over 10 years.
Creating American Jobs:
The American Recovery and Reinvestment Act also provides $311 billion in appropriations, including the following critical investments:
Investments in Infrastructure and Science - $120 billion
Investments in Health - $14.2 billion
Investments in Education and Training - $105.9 billion
Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
Law Enforcement, Oversight, Other Programs - $7.8 billion
Investments in Infrastructure and Science include:
Infrastructure Improvements
$7.2 billion for Broadband to increase broadband access and usage in unserved and underserved areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation. ($6 billion prior to Conference)
$2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard. ($2.3billion prior to Conference)
$4.6 billion in funding for the Corps of Engineers. ($4.5 billion prior to Conference)
$1.2 billion for VA hospital and medical facility construction and improvements, long-term care facilities for veterans, and improvements at VA national cemeteries. ($950 million prior to Conference)
$3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands. (same prior to Conference)
$4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in energy efficiency projects and to improve the repair and modernization of Department of Defense facilities to include Defense Health facilities. ($3.75 billion prior to Conference)
$2.33 billion for Department of Defense Facilities including quality of life and family-friendly military improvement projects such as family housing, hospitals, and child care centers. ($2.1 billion prior to Conference)
$2.25 billion through HOME and the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving. ($1.5 billion prior to Conference)
$1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times. (same prior to Conference)
$1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought. ($500 million prior to Conference)
Transportation
$27.5 billion is included for highway investments ($30 billion prior to Conference)
$8.4 billion for investments in public transportation. ($13 billion prior to Conference)
$1.5 billion for competitive grants to state and local governments for transportation investments. ($3 billion prior to Conference)
$1.3 billion for investments in our air transportation system. ($3 billion prior to Conference)
$9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity Rail. ($1.1 billion prior to Conference)
Public Housing
$4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings. ($5 billion prior to Conference)
$2 billion for full-year payments to owners receiving Section 8 project-based rental assistance. (new)
$2 billion for the redevelopment of abandoned and foreclosed homes. ($4.2 billion prior to Conference)
$1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula. (same prior to Conference)
$250 million is included for energy retrofitting and green investments in HUD-assisted housing projects. ($1.5 billion prior to Conference)
Environmental Clean-Up/Clean Water
$6 billion is directed towards environmental cleanup of former weapon production and energy research sites. (same prior to Conference)
$6 billion for local clean and drinking water infrastructure improvements. ($2 billion prior to Conference)
$1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund. ($800 million prior to Conference)
$1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas. ($1.5 billion prior to Conference)
Science
$1 billion total for NASA. ($600 million prior to Conference)
$3 billion total for National Science Foundation (NSF). (same prior to Conference)
$2 billion total for Science at the Department of Energy including $400 million for the Advanced Research Projects Agency—Energy (ARPA-E). (same prior to Conference)
$830 million total for the National Oceanic and Atmospheric Association (NOAA). ($600 million prior to Conference)
Investments in Health include:
$19 billion, including $2 billion in discretionary funds and $17 billion for investments and incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors’ offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans. ($20 billion prior to Conference)
$1 billion for prevention and wellness programs to fight preventable diseases and conditions with evidence-based strategies. ($3 billion prior to Conference)
$10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities. ($2 billion prior to Conference)
$1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of the Secretary to evaluate the relative effectiveness of different health care services and treatment options. (same prior to Conference)
Investments in Education and Training include:
$53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities. ($79 billion prior to Conference)
$13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential. (same prior to Conference)
$12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever. ($13 billion prior to Conference)
$15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education. (same prior to Conference)
$3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth). ($4 billion prior to Conference)
Investments in Energy include:
$4.5 billion for repair of federal buildings to increase energy efficiency using green technology. ($6.7 billion prior to Conference)
$3.4 billion for Fossil Energy research and development. ($2.4 billion prior to Conference)
$11 billion for smart-grid related activities, including work to modernize the electric grid. (same prior to Conference)
$6.3 billion for Energy Efficiency and Conservation Grants. ($6.9 billion prior to Conference)
$5 billion for the Weatherization Assistance Program. ($6.2 billion prior to Conference)
$2.5 billion for energy efficiency and renewable energy research. ($2 billion prior to Conference)
$2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States. (same prior to Conference)
$6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar projects and for electricity transmission projects. ($8 billion prior to Conference)
$1 billion for other energy efficiency programs including alternative fuel trucks and buses, transportation charging infrastructure, and smart and energy efficient appliances. ($900 million prior to Conference)
Help for Workers and Families Hardest Hit by the Economic Crisis includes:
$19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase the benefit by 13.6 percent. ($20 billion prior to Conference)
Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care. (same prior to Conference)
Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school. (same prior to Conference)
State and Local Law Enforcement:
$4 billion total to support law enforcement efforts. (same prior to Conference)
$555 million to expand the Department of Defense Homeowners Assistance Program (HAP) during the national mortgage crisis. (new)
The American Recovery and Reinvestment Plan provides oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.
Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
Numerous provisions in the bill provide for expedited but effective obligation of funds so that dollars are invested in the economy as quickly as possible.
The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
A special website will provide transparency by posting information about recovery spending, including grants, contracts, and all oversight activities.
State and local whistleblowers who report fraud and abuse are protected.
There are no earmarks in this bill.
Friday, February 06, 2009
Delay in the Senate
This morning’s jobs report, and the out-of-work Americans the numbers represent, will hopefully prompt the Senate to move urgently to provide a stimulus package with the speed and scope desperately needed by our country. We learned today that in January, American job losses totaled 598,000—the worst month of job losses since 1974, and the 13th straight month of job losses.
Delay and dissent are not helping. I absolutely want the best, most thoughtful package passed —but the preening for the cameras and partisan posturing does not serve our constituents. America needs action and we need it now.
Mark Zandi, chief economist at Moody’s Economy.com, is quoted on the front page of the KC Star today. The article reads: “After bottoming out in early 2009, hiring will pick up through at least 2012,’ Zandi said. ‘Without a big federal stimulus program, though, he warned that projected unemployment could hover near 11 percent throughout 2010.”
This is the same Mark Zandi who estimates that the stimulus package will create and save nearly 4 million American jobs by the end of 2010.
The full text of Mr. Zandi’s stimulus analysis can be found here: http://www.economy.com/mark-zandi/documents/Economic_Stimulus_House_Plan_012109.pdf
I do not believe getting this package done right and getting it done now are mutually exclusive. America is hurting; it is to time act.
SIX REASONS FOR SENATE ACTION
JOB LOSSES: In January, American job losses totaled 598,000 – the worst month of job losses since 1974 and the 13th straight month of job losses. Total job loss since the recession began in December 2007 has climbed to 3.6 million, the largest 13-month job loss on record (series began in 1939). About one-half of this decline occurred in the past 3 months.
BROAD RANGE OF INDUSTRIES IMPACTED: Factories slashed 207,000 jobs in January, the largest one-month drop since October 1982. Construction companies got rid of 111,000 jobs. Professional and business services chopped 121,000 positions. Retailers eliminated 45,000 jobs. Leisure and hospitality services axed 28,000 slots.
UNEMPLOYMENT & PART-TIME WORK: In January, the unemployment rate surged to 7.6 percent -- the highest level in 16 years – up from 4.7 percent in 2007. The number of Americans looking for work climbed to 11.6 million in January – 4.1 million more than a year ago, and the highest number in 26 years. An additional 3.1 million Americans have been forced into part-time work in the last year.
LAYOFFS: Leading American companies (including those at Macy’s, Caterpillar Inc., pharmaceutical giant Pfizer, Sprint Nextel Corp., and Home Depot) continue to announce layoffs -- with more than 70,000 workers layoffs announced in one day.
ECONOMY IN RECESSION: This winter, the Gross Domestic Product fell 3.8 percent in the final quarter of 2008 – the largest contraction since the steep recession of the early 1980s. Business investment dropped at a 19 percent pace, the most since 1975. The U.S. economy has officially been in recession since December 2007, already making it the longest downturn since 1981-82. Analysts say this downturn could be the most severe since the Great Depression.
CONSUMER SPENDING & CONFIDENCE: Consumer spending fell in December for a record sixth consecutive month, capping the worst year since 1961. Consumer confidence slid to another all-time low in January.
Delay and dissent are not helping. I absolutely want the best, most thoughtful package passed —but the preening for the cameras and partisan posturing does not serve our constituents. America needs action and we need it now.
Mark Zandi, chief economist at Moody’s Economy.com, is quoted on the front page of the KC Star today. The article reads: “After bottoming out in early 2009, hiring will pick up through at least 2012,’ Zandi said. ‘Without a big federal stimulus program, though, he warned that projected unemployment could hover near 11 percent throughout 2010.”
This is the same Mark Zandi who estimates that the stimulus package will create and save nearly 4 million American jobs by the end of 2010.
The full text of Mr. Zandi’s stimulus analysis can be found here: http://www.economy.com/mark-zandi/documents/Economic_Stimulus_House_Plan_012109.pdf
I do not believe getting this package done right and getting it done now are mutually exclusive. America is hurting; it is to time act.
SIX REASONS FOR SENATE ACTION
JOB LOSSES: In January, American job losses totaled 598,000 – the worst month of job losses since 1974 and the 13th straight month of job losses. Total job loss since the recession began in December 2007 has climbed to 3.6 million, the largest 13-month job loss on record (series began in 1939). About one-half of this decline occurred in the past 3 months.
BROAD RANGE OF INDUSTRIES IMPACTED: Factories slashed 207,000 jobs in January, the largest one-month drop since October 1982. Construction companies got rid of 111,000 jobs. Professional and business services chopped 121,000 positions. Retailers eliminated 45,000 jobs. Leisure and hospitality services axed 28,000 slots.
UNEMPLOYMENT & PART-TIME WORK: In January, the unemployment rate surged to 7.6 percent -- the highest level in 16 years – up from 4.7 percent in 2007. The number of Americans looking for work climbed to 11.6 million in January – 4.1 million more than a year ago, and the highest number in 26 years. An additional 3.1 million Americans have been forced into part-time work in the last year.
LAYOFFS: Leading American companies (including those at Macy’s, Caterpillar Inc., pharmaceutical giant Pfizer, Sprint Nextel Corp., and Home Depot) continue to announce layoffs -- with more than 70,000 workers layoffs announced in one day.
ECONOMY IN RECESSION: This winter, the Gross Domestic Product fell 3.8 percent in the final quarter of 2008 – the largest contraction since the steep recession of the early 1980s. Business investment dropped at a 19 percent pace, the most since 1975. The U.S. economy has officially been in recession since December 2007, already making it the longest downturn since 1981-82. Analysts say this downturn could be the most severe since the Great Depression.
CONSUMER SPENDING & CONFIDENCE: Consumer spending fell in December for a record sixth consecutive month, capping the worst year since 1961. Consumer confidence slid to another all-time low in January.
Friday, January 30, 2009
American Recovery
Wednesday, I voted for the President’s $825 billion stimulus with one hand, and crossed my fingers with the other. The bill did not change too much from the recap I sent you last week, and sadly it was a strictly partisan vote. But let us be clear, despite Republican opposition (and I read Rep. Jenkin’s piece in the Star today) every American, left, right and midland needs to be hoping that this package works.
Failure is not something we honestly can consider. If after two years the speed, spread and scope of this package does not pay off, we will be entering our fifth and sixth year of recession and our problems will be far greater than asking where $825 billion went.
As you know I have as many friends on the other side of the aisle as I do on my side, but after their stewardship of the economy over the last 8 years, criticism from the right is a little hard to take. This may not be the answer, but every single one of us needs to be hoping for success instead of sharpening our partisan knives.
Jobs
The American Recovery and Reinvestment Act should create and save 3 to 4 million jobs, by rebuilding America, making us more globally competitive and energy independent, and transforming our economy for long-term growth; giving 95 percent of American workers an immediate tax cut; and investing quickly in the economy – with 75 percent of these job-creating investments in the economy in the next 18 months.
America is facing an economic crisis greater than any since the Great Depression. A staggering 2.6 million American jobs were lost in the last year. I do not need to tell you, things are bad. The unemployment rate here in Missouri has climbed to 7.3 percent.
As a result of the stimulus passed this week, independent economist Mark Zandi of Moody’s projects Missouri will save or create and estimated 71,030 jobs, growing our workforce by 2.2 percent.
Energy
The bill seeks to double our renewable energy production and renovate public buildings to make them more energy efficient. The energy provisions of the plan will create more than 500,000 jobs by accelerating deployment of smart grid technology and the building of new electric transmission lines for renewable energy, spurring energy efficiency investment in our homes and schools to cut energy costs, offering support for the nation’s governors and mayors to tackle their energy challenges, and spurring investment in renewable energy and better fuel efficient cars for a greener future. These are all things that HAVE to be done in the near future, so providing funding and concentrated effort both completes a national priority and puts people back to work.
Health Care
To reduce health care costs, the American Recovery and Reinvestment Act invests in a practical investment to bring our health care system into the 21st century with health information technology – that is proven not only to reduce costs but also to increase the quality of care, save lives, and create jobs.
While we are on the subject of health care, the millions of people who have lost their jobs in this recession have also lost their health insurance. This package provides those losing their jobs new affordable options for maintaining their health care coverage. And, to protect existing Medicaid coverage for millions of Americans, the package provides $1.49 billion here in Missouri in additional federal matching Medicaid funds to help stave off cuts in health care in the face of massive state budget shortfalls. Yes that is billion with a “b”.
Education
Strategic investments in education are one of the best ways to help America become more productive and competitive – spurring long-term growth. This recovery package will make bold investments to provide children with a 21st century education. In Missouri, this means $1,22 billion to prevent teacher layoffs and other cutbacks in education and other key services and over $344 million to modernize our schools and colleges, which will create good- paying jobs. It will also make college more affordable with improved Pell Grants for the 138, 591 Pell Grant recipients in Missouri and a higher education tax credit for an additional 74,000 students in our state so that they can stay in college.
Construction
The bill also concentrates on construction. The Act will make large investments to repair and modernize thousands of miles of roadways in the U.S., provide new mass transit options for millions of Americans, and invest in clean water infrastructure. These provisions would create about 1.5 million American jobs nationwide. In Missouri, this will provide more than $954 million to invest in these key infrastructure projects that are ready to go and will begin to create jobs for Missourians right away.
Tax Relief
As a downpayment on permanent middle-class tax cuts promised by President Obama, the plan includes tax cuts for 95% of American workers, including Over 2 million families here in Missouri with the “Making Work Pay” Tax Credit. Expanding the Child Tax Credit will help the families of 326,000 children in Missouri. The business tax cuts in the package will also spur new job-creating investments by businesses large and small, that will transform our economy for years to come, such as in renewable energy and energy efficiency.
In this economic crisis, high unemployment and rising costs have put a huge strain on many American families. The package contains a series of additional provisions to help, including helping workers train and find jobs, extending unemployment benefits for 48,000 people here in Missouri, and increasing food stamp benefits for nearly a million more people in need our home state.
The package now moves to the Senate who, last I knew, were contemplating a package of $900 billion which alters some of these formulas a bit, so the numbers may change from what I have outlined here. I will try to keep you up to date as the bill moves forward. We expect the bill to be on the President’s desk before Presidents’ Day as he has requested.
Failure is not something we honestly can consider. If after two years the speed, spread and scope of this package does not pay off, we will be entering our fifth and sixth year of recession and our problems will be far greater than asking where $825 billion went.
As you know I have as many friends on the other side of the aisle as I do on my side, but after their stewardship of the economy over the last 8 years, criticism from the right is a little hard to take. This may not be the answer, but every single one of us needs to be hoping for success instead of sharpening our partisan knives.
Jobs
The American Recovery and Reinvestment Act should create and save 3 to 4 million jobs, by rebuilding America, making us more globally competitive and energy independent, and transforming our economy for long-term growth; giving 95 percent of American workers an immediate tax cut; and investing quickly in the economy – with 75 percent of these job-creating investments in the economy in the next 18 months.
America is facing an economic crisis greater than any since the Great Depression. A staggering 2.6 million American jobs were lost in the last year. I do not need to tell you, things are bad. The unemployment rate here in Missouri has climbed to 7.3 percent.
As a result of the stimulus passed this week, independent economist Mark Zandi of Moody’s projects Missouri will save or create and estimated 71,030 jobs, growing our workforce by 2.2 percent.
Energy
The bill seeks to double our renewable energy production and renovate public buildings to make them more energy efficient. The energy provisions of the plan will create more than 500,000 jobs by accelerating deployment of smart grid technology and the building of new electric transmission lines for renewable energy, spurring energy efficiency investment in our homes and schools to cut energy costs, offering support for the nation’s governors and mayors to tackle their energy challenges, and spurring investment in renewable energy and better fuel efficient cars for a greener future. These are all things that HAVE to be done in the near future, so providing funding and concentrated effort both completes a national priority and puts people back to work.
Health Care
To reduce health care costs, the American Recovery and Reinvestment Act invests in a practical investment to bring our health care system into the 21st century with health information technology – that is proven not only to reduce costs but also to increase the quality of care, save lives, and create jobs.
While we are on the subject of health care, the millions of people who have lost their jobs in this recession have also lost their health insurance. This package provides those losing their jobs new affordable options for maintaining their health care coverage. And, to protect existing Medicaid coverage for millions of Americans, the package provides $1.49 billion here in Missouri in additional federal matching Medicaid funds to help stave off cuts in health care in the face of massive state budget shortfalls. Yes that is billion with a “b”.
Education
Strategic investments in education are one of the best ways to help America become more productive and competitive – spurring long-term growth. This recovery package will make bold investments to provide children with a 21st century education. In Missouri, this means $1,22 billion to prevent teacher layoffs and other cutbacks in education and other key services and over $344 million to modernize our schools and colleges, which will create good- paying jobs. It will also make college more affordable with improved Pell Grants for the 138, 591 Pell Grant recipients in Missouri and a higher education tax credit for an additional 74,000 students in our state so that they can stay in college.
Construction
The bill also concentrates on construction. The Act will make large investments to repair and modernize thousands of miles of roadways in the U.S., provide new mass transit options for millions of Americans, and invest in clean water infrastructure. These provisions would create about 1.5 million American jobs nationwide. In Missouri, this will provide more than $954 million to invest in these key infrastructure projects that are ready to go and will begin to create jobs for Missourians right away.
Tax Relief
As a downpayment on permanent middle-class tax cuts promised by President Obama, the plan includes tax cuts for 95% of American workers, including Over 2 million families here in Missouri with the “Making Work Pay” Tax Credit. Expanding the Child Tax Credit will help the families of 326,000 children in Missouri. The business tax cuts in the package will also spur new job-creating investments by businesses large and small, that will transform our economy for years to come, such as in renewable energy and energy efficiency.
In this economic crisis, high unemployment and rising costs have put a huge strain on many American families. The package contains a series of additional provisions to help, including helping workers train and find jobs, extending unemployment benefits for 48,000 people here in Missouri, and increasing food stamp benefits for nearly a million more people in need our home state.
The package now moves to the Senate who, last I knew, were contemplating a package of $900 billion which alters some of these formulas a bit, so the numbers may change from what I have outlined here. I will try to keep you up to date as the bill moves forward. We expect the bill to be on the President’s desk before Presidents’ Day as he has requested.
Friday, January 23, 2009
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.
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.
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