Stimulus you say? You be the judge
By the numbers:
- $825 billion total (but with interest by 2020 - the supposed target "pay off by" date - 1.2 Trillion)
- $550 billion in new spending, described as thoughtful and carefully targeted priority investments with unprecedented accountability measures built in.
- $275 billion in tax relief ($1,000 tax cut for families, $500 tax cut for individuals through SS payroll deductions)
- $ 90 billion for infrastructure
- $ 87 billion Medicaid aid to states
- $ 79 billion school districts/public colleges to prevent cutbacks
- $ 54 billion to encourage energy production from renewable sources
- $ 41 billion for additional school funding ($14 billion for school modernizations and repairs, $13 billion for Title I, $13 billion for IDEA special education funding, $1 billion for education technology)
- $ 24 billion for "health information technology to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies" and "to provide for preventative care and to evaluate the most effective healthcare treatments."
- $ 16 billion for science/technology ($10 billion for science facilities, research, and instrumentation; $6 billion to expand broadband to rural areas)
- $ 15 billion to increase Pell grants by $500
- $ 6 billion for the ambiguous "higher education modernization."
Here is a further breakdown of the package:
Energy
$32 billion: Funding for "smart electricity grid" to reduce waste
$16 billion: Renewable energy tax cuts and a tax credit for research and development on energy-related work, and a multiyear extension of renewable energy production tax credit
$6 billion: Funding to weatherize modest-income homes
Science and Technology
$10 billion: Science facilities
$6 billion: High-speed Internet access for rural and underserved areas
Infrastructure
$30 billion: Transportation projects
$31 billion: Construction and repair of federal buildings and other public infrastructure
$19 billion: Water projects
$10 billion: Rail and mass transit projects
Education
$41 billion: Grants to local school districts
$79 billion: State fiscal relief to prevent cuts in state aid
$21 billion: School modernization ($15.6 billion to increase the Pell grant by $500; $6 billion for higher education modernization)
Health Care
$39 billion: Subsidies to health insurance for unemployed; providing coverage through Medicaid
$87 billion: Help to states with Medicaid
$20 billion: Modernization of health-information technology systems
$4.1 billion: Preventative care
Jobless Benefits
$43 billion for increased unemployment benefits and job training.
$39 billion to support those who lose their jobs by helping them to pay the cost of keeping their employer provided healthcare under COBRA and providing short-term options to be covered by Medicaid.
$20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.
Taxes
Individuals:
*$500 per worker, $1,000 per couple tax cut for two years, costing about $140 billion.
*Greater access to the $1,000-per-child tax credit for the working poor.
*Expansion of the earned-income tax credit to include families with three children
*A $2,500 college tuition tax credit.
*Repeal of a requirement that a $7,500 first-time homebuyer tax credit be paid back over time.
Businesses:
*An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two.
*Bonus depreciation for businesses investing in new plants and equipment
*Doubling of the amount small businesses can write off for capital investments and new equipment purchases.
*Allowing businesses to claim a tax credit for hiring disconnected youth and veterans
When is the money being is going to be spent, and on what?
(Note: the Preliminary CBO Report delays referenced below reflects their study on 40% of the stimulus package [read: not including items like the tax cuts, jobless benefits, etc, etc], reflecting only the "directonary spending" as in infrastructure/direct employment effect).
-The government wouldn't be able to spend at least one-fourth of a proposed $825 billion economic stimulus plan until after 2010, according to a preliminary report by the Congressional Budget Office that suggests it may take longer than expected to boost the economy. The government would spend about $26 billion of the money this year and $110 billion more next year, the report said. About $103 billion would be spent in 2011, while $53 billion would be spent in 2012 and $63 billion between 2013 and 2019.
- Less than $5 billion of the $30 billion set aside for highway spending would be spent within the next two years, the CBO said.
- Only $26 billion out of $274 billion in infrastructure spending would be delivered into the economy by the Sept. 30 end of the budget year, just 7 percent.
- Just one in seven dollars of a huge $18.5 billion investment in energy efficiency and renewable energy programs would be spent within a year and a half.
- About $907 million of a $6 billion plan to expand broadband access in rural and other underserved areas would be spent by 2011, CBO said.
- Just one-fourth of clean drinking water projects can be completed by October of next year.
Who will be spending the money? Will the states be receiving any money to spend, community organizations? Churches?
The economic stimulus plan now moving through Congress would shower billions of federal dollars on state and local governments desperate for cash:
• The House stimulus bill includes an extra $87 billion in federal aid to state Medicaid programs.
• It allots some $120 billion to boost state and city education programs.
• There's $4 billion for state and local anticrime initiatives in the legislation, not to mention $30-plus billion for highways and other infrastructure projects.
• $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.
• $87 billion to states, increasing through the end of FY 2010 the share of Medicaid costs the Federal government reimburses all states by 4.8 percent, with extra relief tied to rates of unemployment.
• $120 billion to states and school districts to stabilize budgets and prevent tax increases and deep cuts to critical education programs.
Overall, about one-quarter of the entire $825 billion recovery package would be devoted to activities crucial to governors, mayors, and local school boards - making them among the plans biggest beneficiaries.
Sources: USHouse ChristianScienceMonitor WallStreetJournal CBO/prelimreport/Bloomberg
And these odds and ends, to get hyper specific on some "favorites" of mine:
And remember, this is billed, sold, and packaged as an ECONOMIC STIMULUS package.
- Diesel Emissions Reduction: $300 million for grants and loans to state and local governments for projects that reduce diesel emissions, benefiting public health and reducing global warming.
-Electric Transportation: $200 million for a new grant program to encourage electric vehicle technologies. (by the way - it takes 200 mil to not MAKE, but encourage their being made ... what the hell?)
-Smart Appliances: $300 million to provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills.
-GSA Federal Fleet: $600 million to replace older vehicles owned by the federal government with alternative fuel automobiles that will save on fuel costs and reduce carbon emissions. (note: no qualifier that it be domestic cars)
-Home Weatherization: $6.2 billion to help low-income families reduce their energy costs by weatherizing their homes and make our country more energy efficient.
-NASA: $600 million, including $400 million to put more scientists to work doing climate change research.
-National Oceanic and Atmospheric Administration Satellites and Sensors: $600 million for satellite development and acquisitions, including climate sensors and climate modeling.
-U.S. Geological Survey: $200 million to repair and modernize U.S.G.S. science facilities and equipment, including improvements to laboratories, earthquake monitoring systems, and computing capacity.
-DTV Conversion Coupons: $650 million to continue the coupon program to enable American households to convert from analog television transmission to digital transmission.
-Clean Water State Revolving Fund: $6 billion for loans to help communities upgrade wastewater treatment systems.
-Health Information Technology: $20 billion to jumpstart efforts to computerize health records to cut costs and reduce medical errors.
-Medicaid Coverage for the Unemployed: Provides 100 percent federal funding through 2010 for optional State Medicaid coverage of individuals (and their dependents) who are receiving unemployment benefits or have exhausted those benefits and have no health insurance coverage.
-Lead Paint: $100 million for competitive grants to local governments and nonprofit organizations to remove lead-based paint hazards in low-income housing.
-Periodic Census and Programs, Communications: $1 billion for work necessary to ensure a successful 2010 census, including $150 million for expanded communications and outreach programs to minimize undercounting of minority groups.
-Medicaid Aid to States (FMAP): Approximately $87 billion to states, increasing through the end of FY 2010 the share of Medicaid costs the federal government reimburses states, with additional relief tied to rates of unemployment. In the previous recession the federal government increased its contribution to Medicaid to help states avoid cuts in health benefits at a time when low-income patient loads are increasing and State revenues are declining.
-Department of Labor Worker Protection and Oversight: $80 million to ensure that worker protection laws are enforced as recovery infrastructure investments are carried out.
And my personal favorite outside the "sex ed" money for condoms (that'll stimulate "something" anyway):
-University Research Facilities: $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants.
This is quite literally giving out federal dollars to institutions in order to help them more effectively get more federal dollar !!!
You couldn't make this stuff up if you tried.
Friday, January 30, 2009
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1 comment:
Thank you for your insight. It is really difficult to find articles with real numbers backing them up, and showing where the money is being spent.
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