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Infrastructure, State Aid Mark Obama Recovery Package

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by Mike Hall, Jan 22, 2009

An $825 billion economic recovery program that creates and saves 3 million to 4 million jobs, extends vitally needed help to unemployed workers and provides to states—facing their severest budget shortfalls in decades—tax relief for working families and other measures is making its way through Congress. The plan, says AFSCME President Gerald McEntee

will protect and create jobs and help states and cities cope with the strain on their budgets. The bill sends a clear message of support for the vital public services—such as health care, education and law enforcement—Americans rely on during an economic crisis.

The American Recovery and Reinvestment Plan, introduced last week, was developed by the new Obama administration and congressional leaders. In a letter to Obama as the plan was being developed, several contractor groups and  unions, including the Electrical Workers (IBEW), Painters and Allied Trades (IUPAT), Plumbers and Pipe Fitters (UA) and Sheet Metal Workers (SMWIA), wrote:

Construction has always been an engine of economic stimulus and can play that role once again. Increases in infrastructure investment can be quickly put to work and will have a direct, immediate and dramatic impact on the economy.

The bill could come to a vote next week in the House after several committees finish work on the bill, says Speaker Nancy Pelosi (D-Calif.).

The Senate timetable is less clear, as Republicans may attempt to stall action, seeking larger business tax breaks. Click here to see new videos from Americans United for Change urging Republican senators to support the recovery package. But Senate and House leaders say they are aiming to finish work by Presidents Day, Feb. 16.

While finding levels will change as the committees work through the bill, they are likely to remain near the levels as introduced. Here are some highlights, but click here for a detailed summary of the spending portion of the bill and here for the tax provisions. The package includes:

  • $90 billion to modernize roads, bridges, transit systems and waterways;
  • $87 billion to help states fund Medicaid;
  • $79 billion in state fiscal relief to prevent cutbacks in key services, including education and public safety;
  • $54 billion for renewable energy/green jobs;
  • $43 billion for increased and extended unemployment benefits and job training;
  • $39 billion to help jobless workers obtain health care coverage;
  • $16 billion for science and technology investments, including expanded broadband access.

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6 Comments

  1. francis jue on 22.01.2009 at 18:39 (Reply)

    And how much of the stimulus package will be Arts Funding? I hope the AFL-CIO won’t forget professional actors and others in affiliated theatre industry unions.

    The Theatre Communications Group has done a study showing that every dollar of private donations to non-profit theatres results in an 800% stimulus to local economies. That sounds like a great investment for the stimulus package!

    Yours,

    Francis Jue

  2. MarkO on 22.01.2009 at 19:11 (Reply)

    I am all for a stimulus program to kick start the economy. The best one would be to bring back the manufacturers we have lost in the last two decades. We are now a colony to China, sending them raw goods (scrap plastic, metal, etc.) while they make the value added finish product and reaping the reward. We need to produce what we buy, for the sake of our working men & women. This is the best way to stimulate the economy on a long term basis!

    1. dearjohn on 29.01.2009 at 18:12 (Reply)

      You make good points Mark, I have one question for you. Do you shop at WALMART? Here is hoping the answer is NO! I see and hear so many union members complain about China and still they run to WALMART to get their cheap made in China products!

      I will wait to see if our new President will keep his word and penalize corporations for sending American Jobs overseas

  3. JerryWells on 22.01.2009 at 23:34 (Reply)

    Corporations and multi-millionaires and billionaires should not get any more tax breaks! Most corporations pay no federal taxes at all!

    Progressive taxation should be restored to levels of years ago, with taxes on wealth and income over a million dollars should be progressively and heavily taxed.

    The tax cap on Social Security should be raised much higher (now at $200,000 ?). Taxes for the lower income level of working people should be eliminated. Single parent families should have their taxes minimized or eliminated.

    The entire tax system and the economy are forever rewarding the wealthy with more and more money. Some 5 to 10 percent of the top own 90 percent of the wealth.

    Stop spending billions and trillions for war! None of the wars the U.S. has been engaged in since World War II have been “defensive”. The Cold War with the Soviet Union ended in 1991 with the collapse of the Soviet Union. And get new phony resons are given for wars for oil, wars for profit, wars for resources.

  4. Jan on 23.01.2009 at 03:09 (Reply)

    How many ILLEGAL ALIENS will the AFL-CIO have to organize in order to put the rest of the AMERICAN CITIZENS out of work in the construction trades?
    I’m sure you won’t print this comment because you know you are also taking advantage of the ILLEGAL ALIENS for profit.

    1. dearjohn on 29.01.2009 at 18:07 (Reply)

      I am a member of the Operating Engineers Local 12 in California. The company I work for has hired a number of mexican american workers, none are illegals, and all are hard workers. I work in the Equipment Rental area, and we do work for both union and non union contractors. The only contractors I find using labor believed to be illegals are the non union companies. The question I would like to ask is How do you KNOW a worker is legal or illegal? What do illegals look like compared to legals? I have asked workers that did not speak english if they were legal, and many showed green cards… But at the same time I have seen MANY illegals work for Rat companies, then become legal, and joined a union.

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