Some Claim Effectie Programs Left Out of Economic Stimulus Plan
STIMULUS
Norwalk Hour
Erin Kutz
Boston University Washington News Service
February 7, 2008
WASHINGTON — Two programs left out of the Senate economic stimulus plan Thursday—extended jobless aid and more money for food stamps—would have provided bigger boosts to the economy than those included in the bill, according to economic analysts and Connecticut agencies.
The Senate Democrats’ original plan, which the Finance Committee approved last week, was blocked Wednesday night by a 58-41 vote, just shy of the 60 votes needed to bring the package to a vote. That plan, unlike the House version, included tax rebates for seniors and disabled veterans, extensions of unemployment insurance and funds for the low-income heating assistance program.
Provisions for additional spending for food stamps did not make it into the Senate’s original plan, but Senate Majority Leader Harry Reid, D-Nev., requested Thursday that increased food stamp aid be added to the legislation.
But in the end, all that was added to the House version of the bill were rebates for 20 million seniors and 250,000 disabled veterans. The revised bill passed the Senate, 81-16, late Thursday afternoon.
A report by Moody’s economic research Web site, economy.com, shows that every dollar spent on food stamps returns $1.73 to the economy and every dollar spent on extended unemployment insurance benefits contributes $1.64, according to a statement by the Center on Budget and Policy Priorities, a non-profit organization that studies state and federal fiscal policy.
Last week, nearly 50,000 people in Connecticut requested unemployment checks, up 3.8 percent from the same period last year, according to John Toomey Jr., a research analyst with the Connecticut Department of Labor. The original Senate plan would have extended unemployment benefits for 13 weeks.
Each month, 104,000 households receive food stamps in Connecticut, according the state Department of Social Services.
Rep Chris Shays R-D-4, said immediately after the Senate acted that his final vote on the bill would be based on how effectively the provisions would advance the economy.
“The first question is: will it stimulate the economy?” he said. “Otherwise it’s a huge waste of dollars. And after that you ask how you would get it to the people who benefit the most.”
About 76 percent of all people who get food stamps use them within the first week and more than 90 percent use them within the first month, according to Lucy Nolan, executive director of End Hunger Connecticut.
“For me it’s a bit of a no-brainer,” Nolan said. “If you want to infuse money quickly into the economy, that’s what you do.”
“People in Connecticut, like people across the United States, are hurting as a result of Bush economic policies and need programs like unemployment insurance and food stamps to help during times of need,” said Colleen Flanagan, communications director for Sen. Christopher Dodd, D-Conn. “Sen. Dodd is committed to working with his colleagues in the Senate to ensure that people who need help making ends meet receive the help they need, and will work toward a stimulus package that addresses both the short- and long-term needs of our economy.”
Robert Bixby, executive director of the Concord Coalition, a non-partisan budget watchdog group, expressed concern that Senate Democrats’ initial requests turned the economic stimulus plan into a gift exchange of partisan desires.
“Everyone with an interest wants to get on board because they know with a stimulus package it will go through quickly,” Bixby said. “It will have the Christmas tree effect, with everyone trying to build on it.”
Bixby said tax rebates for seniors and disabled veterans seems to draw more of a bipartisan consensus and could be the provision most likely to make it through in the end.
Sen. Joseph Lieberman, I-Conn, expressed concern over the blocked benefits for seniors and disabled veterans.
“I believe it is imperative that we immediately get vital assistance to those who need it—including the unemployed, seniors and disabled veterans—to boost our weakening economy,” Lieberman said. “This is a time to reject partisan politics and take critical action on behalf of the American people.”
####
