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For Immediate Release
Contact: Betsy Hart, 202-226-8555

HERSETH SANDLIN VOTES FOR STIMULUS – CITES ECONOMIC RECESSION, NEED FOR SWIFT ACTION

Supports Stimulus Legislation That Provides $236 million for Infrastructure Projects in South Dakota, Includes Tax Relief for 95% of American Workers

Blue Dogs Stress Accountability and Transparency; Long-Term Commitment to Fiscal Responsibility

January 28, 2009, Washington, DC - Today, Rep. Herseth Sandlin joined a majority of her colleagues in supporting the American Recovery and Reinvestment Act. This legislation includes provisions to stimulate and strengthen the nation’s struggling economy by investing in infrastructure projects and providing essential tax relief for working families and small businesses in South Dakota and across the country.

“Clearly, the nation and our state are facing a serious economic recession that will only get worse the longer we delay taking decisive action to stimulate the economy in the short term, and strengthen the economy in the long-term,” Rep. Herseth Sandlin said. “The bill passed in the House today has many good provisions and will provide a real boost to South Dakota by creating jobs, cutting taxes and investing in critical infrastructure.”

In the American Recovery and Reinvestment Act, South Dakota will be eligible to receive approximately $236 million in total infrastructure investment including:

• $198 million for highways and bridges
• $11.8 million for transit capital
• $28.5 million for the Clean Water projects

Herseth Sandlin noted that her office has been informed by the South Dakota Department of Transportation that there are at least 80 “shovel-ready” projects in the state that can benefit from the infrastructure investment funds. In a letter to Herseth Sandlin, South Dakota’s Secretary of Transportation, Darin Bergquist wrote that SDDOT has put special consideration into readying projects that will foster jobs and economic activity in our state and, he wrote, “help citizens, businesses, and farmers throughout the state” through “improvements needed to keep our roads and bridges paved, preserved and safe.”

The bill also targets important stimulus for South Dakota’s families and businesses through tax relief, including a tax cut for approximately 95% of American workers.

Individuals

• Creates a tax credit of up to $500 per worker and $1,000 per family for 2009 and 2010, phasing out at $200,000 for couples filing jointly and $100,000 for single filers.
  Businesses
• Extends through 2009 the bonus depreciation enacted by Congress last year
• Extends enhanced small business expensing, doubling the amount small businesses can immediately write off on their taxes for capital investments and for purchase of new equipment in 2009
• Provides a 5-year carryback of net operating losses

The bill also contains strong transparency and accountability provisions to guard against waste, fraud and abuse of taxpayer funds. Importantly, this includes the establishment of a Recovery Act Accountability and Transparency Board. The Board, which would have U.S. Inspectors General as members, would supervise all spending under the bill and submit both flash reports requiring immediate attention to possible problems, as well as quarterly reports. In addition, the bill would create a new public website that will track announcements of contract and grant competitions and awards.

In view of the overall size of the stimulus and recovery package, the Blue Dog Coalition has stressed throughout the process the importance of shoring up the country’s long-term finances. In her role as a leader of the Blue Dogs, Rep. Herseth Sandlin has been in negotiation with the Obama Administration to ensure that it follows through on the President’s public commitment to long-term financial stability and pay-as-you-go spending. Late Tuesday, Peter Orszag, the new director of the Office of Management and Budget (OMB), released a letter in which he said “Moving forward, we need to return to the fiscal responsibility and pay-as-you-go budgeting that we had in the 1990’s for all non-emergency measures. The President and his economic team look forward to working with the Congress to develop budget enforcement rules that are based on the tools that helped create the surpluses of a decade ago. Putting the country back on the path of fiscal responsibility will mean tough choices and difficult trade-offs, but for the long-term health of our economy, the President believes that they must be made.”

Herseth Sandlin added “The Congressional Budget Office has now analyzed the entire House package and projected that about two-thirds of the plan’s spending and investments will be made in the first 18 months. We’re hopeful that after the conferencing process, that percentage can be raised at least to the administration’s goal of 75%.”

The Senate is considering a separate package. Once both chambers have passed their own versions of the legislation, differences must be reconciled before the chambers vote again on a final package to send to the President. Herseth Sandlin concluded, “I’m hopeful that once the Senate acts on its own version of this economic recovery legislation, the two houses of Congress will negotiate a bipartisan package that will keep to the principles of short-term stimulus and long-term recovery. I am voting to support the House version today based on the inclusion of many provisions important to South Dakota and the nation, and to move the process along. I will evaluate the final package with these same considerations.”

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