How Would the Stimulus Package Benefit New York?
NY- White House
WENY-TV
Lindsay Perna
Boston University Washington News Service
Feb. 4, 2009
WASHINGTON — As the Senate prepares to vote on the pending economic recovery package, White House advisers and New York members of Congress are trying to dissect what the near-trillion dollar price tag will mean for the taxpayers who are investing in it.
The passage of the American Recovery and Reinvestment Plan is an “important down payment on rebuilding our economy,” National Economic Council Director Larry Summers said in a press briefing Tuesday.
As the point person in charge of coordinating President Obama’s policies, Summers simplified the context of the bill that would create or save 3 million to 4 million jobs over the two-year period of the plan.
Summers estimated an employment impact of 218,000 jobs for New York.
“We want to do infrastructure investment wherever possible, but we also want to prevent the economic implosion of our communities,” he said. “These funds will help us do that.”
Other New York initiatives in the plan include the modernization of at least 867 schools in New York, a work pay tax cut of up to $1,000 for 7 million workers and $100 per month increase in unemployment insurance benefits to 1 million workers in New York who have lost their jobs.
In a press release, Sen. Charles E. Schumer (D-N.Y) announced that the bill will send nearly $1.6 billion over two years to Upstate New York, $737 million in federal Medicaid relief and a minimum of $860 million in education aid. Counties in the Southern Tier will receive approximately $27 million in budget relief through the Federal Medical Assistance Percentage.
Rep. Eric J.J. Massa (D-N.Y.) said he voted for the legislation despite its deficit spending and supported the bill because he was “very pleased with what is going on with education.”
The Elmira district is receiving more than $7.5 million in funding in a two-year period.
He said he also fought for three rural broadband initiatives for the district of which “without we’re done.”
Though the congressman made his demands as the bill passed the House, now that it is out of his hands, Rep. Massa must stand-by as the Senate takes its turn.
One program he is not willing to sacrifice is the “Buy American” provision, which requires stimulus-funded projects to use only U.S. made iron and steel.
The House version may be modified in the Senate.
“The President has been very clear that he wants this to be a bill that supports the American economy, but at the same time this bill is not going to be an excuse for America breaking its international commitments,” Summers said.
As an advocate for the industries and people in his district, the congressman said using stimulus money in America is “kind of the concept.”
“Why would we spend borrowed tax money to buy things made in China. That’s what the Bush administration did…that didn’t stimulate our economy,” said the congressman.
Some House members opposed the bill.
A spokesperson for Rep. Glenn Thompson (R-Penn.) said the congressman, who voted against the spending package, found the legislation “a wish list of the liberal, socialist agenda.”
He said that the congressman recognized “worthy programs in the stimulus package,” but not enough in the way of infrastructure.
“Make no mistake though,” Summers said. “These problems were not created in a day or a month or a year and will not be solved in a day or a month or a year.”
