Vermont And The Stimulus Package
–
Leahy
Says Plan OKd Tuesday By Appropriations Committee
Is ‘Good Match’ For Vermont’s Budget Deficit And
Economy
WASHINGTON (Tuesday, Jan. 27) – Sen. Patrick Leahy
(D-Vt.) says the economic stimulus plan approved Tuesday by a key Senate
panel is “a good match” to ease Vermont’s widening state budget deficit
and to bolster Vermont’s economy. Leahy is one of the most senior
members of the Appropriations Committee, which approved the plan and
advanced it to the full Senate.
Leahy said, “Bit by bit,
Vermont’s economy and our state budget have been drawn into the nation’s
economic crisis.” He said he has listened to the needs identified
by Governor Jim Douglas, Speaker Shap Smith, Senate President Pro Tem
Peter Shumlin and by countless Vermont community and business leaders,
and that he and Sen. Bernie Sanders (I-Vt.) and Rep. Peter Welch (D-Vt.)
have closely consulted.
“My goal has been to make sure that the Appropriations
Committee pays close attention to Vermont’s priorities, and I’m pleased
to report that Vermont’s priorities are doing very, very well,” said
Leahy. “This package includes infusions of emergency aid that
would directly relieve Vermont’s budget deficit, create new jobs in
Vermont and help save existing jobs, and make a timely and constructive
difference across our state. Most of all, this bill needs to
create jobs, and our efforts to keep that strong focus have been
working.”
Leahy earlier this year spelled out his priorities for
the bill in letters to Senate leaders, and the bill approved Tuesday
closely tracks his requests. Leahy said some of the key benefits
to Vermont in the Senate Appropriations Committee’s bill include:
SCHOOL DISTRICTS: Vermont schools stand to gain nearly
$90 million in education and school repair funds through the No Child
Left Behind Act and special education programs.
STATE EDUCATION AND PUBLIC SAFETY BUDGET RELIEF: The
Governor and Legislature would have up to $125 million to prevent cuts
in education, public safety and other government services.
ANTI-CRIME & LAW ENFORCEMENT: As chairman of the
Judiciary Committee Leahy led in putting together the bill’s provisions
that would bring about $10 million to Vermont’s law enforcement
community.
MEDICAID SHORTFALLS: For Vermont’s Medicaid shortfalls, Vermont would
receive an estimated $250 million over two years.
TRANSPORTATION: Vermont would receive about $135
million for highways, bridges and transit needs.
HOUSING: More than $14 billion nationally for housing
programs that could bring more than $20 million to Vermont for
affordable housing, homeless prevention and Section 8 rental assistance.
CREATING THE JOBS OF THE FUTURE: One of Leahy’s top
priorities in the bill, its broadband provisions include $9 billion for
expanding broadband access, half of that for rural areas. It also
includes $4 billion for Smart Grid electric lines that might fund a
ground-breaking initiative in Vermont.
Combined with the
economic recovery tax cuts and mandatory programs announced by the
Senate Finance Committee last week, the Senate legislation totals $825
billion. The Appropriations portion totals $365 billion. The
package would create or sustain an estimated 4 million or more jobs
nationwide.
VERMONT AND THE SENATE’S STIMULUS PACKAGE
Broadband
Vermont still faces a
deep digital divide in broadband deployment, particularly in rural
areas, due in large part to the failure of broadband providers to offer
services to rural areas and to the lack of a strategic, national plan to
make broadband access a universal service. Though the federal
government has begun making investments in broadband expansion, economic
opportunities in rural areas could be substantially expanded by
accelerating these broadband access programs. The Senate stimulus
bill provides a significant new investment in broadband deployment -- $9
billion for the National Telecommunications and Information
Administration’s Broadband Technology Opportunities Program.
Small Business
Assistance
Vermont businesses continue to struggle with
tightening credit conditions that keep them from retaining their
employees or expanding their businesses. Senator Leahy pushed for
funding that will encourage lending to small business and housing
projects across Vermont. As a result, the Senate stimulus bill
contains $250 million to provide capital to qualified community
development financial institutions (CDFIs) to invest in the development
of underserved communities. The following Vermont institutions are
CDFIs that could benefit from the increased funding: Vermont
Community Loan Fund, Community Capital, Opportunities Credit Union
(Vermont Development Credit Union), Northern Community Investment
Corporation, and Neighborworks of Western Vermont (Rutland West
Neighborhood Housing Services, Inc.). The bill also contains $730
million in SBA loans to stimulate lending to small businesses.
Nutrition & Health
With the dramatic rise in both food prices and
unemployment, the current economic situation severely affects the food
security of Vermont families. With more than 10 percent of all
households in Vermont considered 'hunger insecure,' the nutrition
funding included the Senate stimulus bill would provide an effective and
immediate economic boost, while helping families put food on the table.
This bill strengthens the national nutrition safety net and target
nutrition assistance to families and communities struggling to make ends
meet.
To attend to the current hunger situation in Vermont,
Senator Leahy pushed for an increase in funding for the Food Stamp
program (now officially called the Supplemental Nutrition Assistance
Program (SNAP)). The Senate bill provides $16.5 billion for
Food Stamp benefits; equaling a 12 percent increase in benefits for
households, plus a one-time bonus payment to families that would have an
instant effect in Vermont. The one-time bonus payment for an
average Vermont Food Stamp household is expected to be $197 and the
one-time bonus payment for an average Vermont senior SNAP recipient
living alone would be $122. Also included in the Senate package is
$500 million for the Women, Infants, and Children (WIC) program, which
will prevent more than 625,000 low-income women, infants, and children
from losing their WIC benefits. Among Senator Leahy's other
suggestions, the Senate stimulus bill also contains $150 million funding
for Food Banks nationwide, potentially bringing $272,000 in funding to
Vermont.
As the economic crisis deepens, families are
struggling to meet the staggering increases in health care costs.
Long-term cost cutting measures, such as the use of electronic medical
records, can help stimulate the health care economy and create much
needed jobs. Vermont has been a leader in advancing health
information technology, and this bill will help the state implement
Vermont’s plans. One of the largest drains on state budgets across
the country is funding Medicaid. This bill will make it easier for
Vermont to maintain and strengthen the state’s Medicaid program through
a temporary, across-the-board increase of the Federal Medical Assistance
Percentage (FMAP). The Senate package includes approximately $250
million in assistance to Vermont's Medicaid program, over two years.
Environment & Energy
As Senator Leahy
requested, the Senate stimulus bill would promote sustainable energy
technologies and create more ‘green jobs’ in Vermont for today and for
tomorrow. The Senate bill would provide more than $40 billion to
the Department of Energy for the development of clean, efficient
American energy. Vermont would also benefit from the inclusion of
$4.5 billion for electric grid modernization in the Senate bill, and
$3.8 billion in loans and grants for much needed water and waste
disposal facilities in rural areas. Also included are $1.3 billion
for grants or loans for those who make energy and green retrofit
investments, and $400 million for rural businesses initiatives,
including the development of renewable energy. The Senate bill
also includes $1.4 billion for the Environmental Protection Agency’s
nationwide environmental cleanup programs, including Superfund.
Education
In tough economic times,
schools in Vermont have been unable to address costly improvements to
50- or 60-year-old buildings made costlier by the high cost of fuel, and
students and families are having difficulty meeting the rising costs of
tuition. To address Vermont’s education needs, Leahy said the
Senate stimulus package includes $16 billion for school modernization
projects nationwide aimed at renovating, repairing and building public
schools and early learning facilities giving priority to local projects
that meet “green” building standards; a $400 per student increase in
Pell Grants; $39 billion to local school districts and public colleges
and universities, and up to $60 million to Vermont for Title I and IDEA
programs to help disadvantaged youth and fund special education
programs.
Law Enforcement
Crime typically rises during bad economic times, and
Senator Leahy led in drafting provisions in the stimulus package to
support local and state law enforcement agencies that are on the front
lines in combating crime. Leahy held Judiciary Committee hearings
in Rutland and St. Albans last year to seek solutions to drug crime in
rural areas, and his stimulus package provisions for law enforcement
take special aim at these rural needs. The Leahy provisions also
would help crime victims through the crime victim services providers
that also have faced drastic cuts from the Bush Administration, forcing
many to curtail services, lay off staff and even close their doors.
To address this situation, Senator Leahy pushed for
increased funding for state and local law enforcement and victims
compensation and services in the stimulus package. Good prevention
and treatment programs have been shown to reduce crime. At Senator
Leahy’s request, the Senate stimulus bill includes $3.95 billion to
support state and local law enforcement efforts, including $150 million
for rural drug enforcement, $300 million to combat domestic violence,
$100 million to support state victims’ compensation and assistance
programs, and $1 billion to put new state and local law enforcement
officers on the streets.
Transportation
Vermont’s transportation
infrastructure is aging and needs repair and in some cases replacement.
At Senator Leahy’s request, the Senate stimulus bill would provide
Vermont with a major boost in transportation funding – more than $130
million -- for state and local officials to make much needed
improvements to our highways, bridges, rail lines, transit systems, and
airports. Specifically, the bill includes $27 billion for formula
highway investments; $8.4 billion for formula investments in public
transportation; $5.5 billion for competitive grants to state and local
governments for surface transportation investments; $1.1 billion for
investments in intercity passenger rail service, and $1.3 billion for
investments in air transportation.
Housing
Though Vermont is reported to
have one of the lowest foreclosure rates in the country, more and more
Vermonters are facing foreclosure and are at risk of losing their homes.
In addition, according to last year’s housing and wages report prepared
by the Vermont Housing Awareness Campaign and the Vermont Housing
Council, nearly two thirds of Vermonters cannot afford to pay median
rent or to purchase an average home in the state of Vermont. That
same report claimed that Vermont has the highest rate of homelessness in
New England. Senator Leahy ensured that programs aimed at making
homes more affordable for Vermonters, providing shelter to the
homeless and addressing the foreclosure crisis were included in the
Senate’s version of the stimulus legislation.
Western Hemisphere
Travel Initiative
The bill includes $35 million to build new Department
of State passport agencies to expand access for American citizens to be
issued passports promptly, rather than by mail. Senator Leahy
included the funds to build these facilities throughout the country to
generate jobs and to improve the customer service provided by the State
Department, one of many lessons learned from the passport backlog crisis
in 2007.
These funds are part of an effort by Senator Leahy to
prepare the federal government to appropriately implement the Western
Hemisphere Travel Initiative (WHTI) as the deadline of June 1, 2009
looms. Senator Leahy intends to encourage the State Department to
build one of the passport agencies in Vermont to facilitate trade and
tourism in small communities that border Canada.
In addition to $1 million appropriated in fiscal year
2008 for public outreach about WHTI, Senator Leahy continues to ensure
that the public is aware of WHTI requirements, that neighboring
countries know that communities in Vermont and other states are open for
tourism and business, and that federal agencies are prepared to issue
the required documents and border stations are ready to facilitate
border crossings.
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