January 28, 2009
For Immediate Release
Contact: Tammy Roche (814) 392-5190

The American Recovery and Reinvestment Plan:
Good for Pennsylvania

Washington D.C.- Congresswoman Kathy Dahlkemper issued the following
statement as an update on the economy and the American Recovery and
Reinvestment Act:

Today, I joined my colleagues in the House of Representatives and voted on the
American Recovery and Reinvestment Act, legislation that will create and save
jobs while investing in the future of our nation. The $819 billion in spending and
tax cuts are intended to stimulate job creation and economic growth. It contains
$275 billion in personal and business tax breaks and $544 billion in
appropriations and direct spending.

January 2009 marks the 13th straight month of job losses in America. In 2008
alone, 2.6 million jobs were lost in the United States – the worst year in more
than 60 years. Pennsylvania, particularly the 3rd District, has been hit hard by the
worsening economy with new plant closings and job losses being announced
daily.

This bleak economic outlook speaks to the urgency of this recovery plan.
Without a plan for recovery, economists have predicted Pennsylvania’s
unemployment to hit record levels in the coming year as more small businesses
shut their doors and more homeowners face foreclosure. That is why passing
the American Recovery and Reinvestment Act has been the top priority of the
Obama Administration and the 111th Congress. Economists from across the
spectrum have recommended that we act swiftly and boldly. This plan is not
perfect, but it is essential to our country’s future, to do nothing would have
devastating effects for families all across our state and country.

Some highlights of the Plan for Pennsylvania include:

Immediate Boost and Long-Term Growth

Through tax cuts and investments, the American Recovery and Reinvestment
Plan is targeted to create or save as many as 4 million jobs while stimulating
economic growth. Specifically, Pennsylvanians will benefit from the following tax
cuts:
• Child Tax Credit of up to $1,000 per child effecting 9,930 children
• Making Work Pay Tax Credit of up to $500 per worker benefiting 4,
420,000 Pennsylvanians
• Extends Production Tax Credit for energy from wind and other renewable
sources
• Modifies Investment Tax Credit of 30 percent for new renewable energy
facilities by allowing an immediate 30 percent tax credit for facilities in the
year they are put into service
• Increased tax credits from $50 to $1,500 to promote energy-efficient
homes
• Enhanced Research and Development Tax Credit of 20 percent for
renewable energy and energy conservation technology
Pennsylvania will also receive funding for:
• Infrastructure Investments - $1.863 billion
• Medicaid - $3,974,900
• Food Stamps - $779,000,000 effecting 1.235 million participants
• Supplemental Security Income - $190,500,000
• Emergency Shelter Grant Program - $90,600,000
• State Fiscal Stabilization Fund – $1.507 billion
• Education for Pennsylvania - $1.860 billion
    o Education for 3rd district - $9,047,100
• Educational Technology State Grants - $6,409,105
• Pell Grants – increasing the maximum grant by $500, potentially effecting
180,000 students
• Child Care and Development Block Grant - $60,146,766
• Employment and Training - $92,900,000
• Increase in Unemployment Benefits:
    o Pennsylvanians will receive a $25 per week increase in benefits
    o Emergency Benefits will be extended by up to 33 weeks
• Additional funding for Worker Training and Employment Services -
$92,900,000

Support From Economists Across the Spectrum

Independent economists have confirmed that the recovery plan will meet its goal
of creating or saving as many as 4 million jobs. Mark Zandi, chief economist for
Moody’s Economy.com and a former advisor to Senator John McCain’s
presidential campaign, found that the recovery plan would lead to an
unemployment rate 2.2 percent lower than if we did nothing, and that more than
90 percent of jobs created would be in the private sector. [Zandi Analysis, 1/21/09]

Accountability and Transparency

The recovery plan will include several important provisions to ensure that
spending is transparent and it is clear to the American people where the money
is going. The plan includes no earmarks and the Obama Administration will
create a website, www.recovery.gov to publicly post details on how the money is
being spent. A Recovery Act Accountability & Transparency Board will be
created to review management of recovery dollars. These accountability
provisions will give the American people the assurance that their money is being
spent to get us out of this recession and is not subject to waste, fraud, or abuse.

We are facing an economic crisis of unprecedented proportions, nothing close
has been experienced since the Great Depression. This Act, with its
combination of tax cuts for individuals and businesses along with the infusion of
cash for job creation and retention, should help us stem the tide of job loss and
help those families most affected by this crisis. By extending unemployment
benefits and increasing food stamps, we are helping those most in need and the
economy will see an immediate benefit. By investing in infrastructure, from roads
to broadband, we are putting people to work and we are making our rural areas
and country more competitive. And by expanding tax credits for businesses, we
are giving them the tools they need to retain and grow their businesses. This
multi-faceted bill is intended to have both immediate and long-term benefits and
while expensive, to do nothing would be far more expensive.