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Is the Stimulus Supposed to Kill Jobs or Create Them?

Washington, DC – U.S. Rep. John L. Mica (R-FL), the Transportation and Infrastructure Committee Republican leader, outlined the ongoing failures of the stimulus to create jobs at a Congressional hearing today.  One of the hearing’s witnesses testified about how the stimulus is actually threatening to kill jobs by eliminating his family’s farm.
        “The Chairman and I tried to put together a more robust infrastructure package when the stimulus was being drafted, but only about 7% of the final package contained infrastructure funding,” Mica said at today’s hearing.  “As you know, I have been critical of the stimulus for not expediting the infrastructure project approval process to allow this money to get out the door and help create jobs faster.
        “The American people are hurting and this stimulus hasn’t worked.  Unemployment is at 9.9%, well above the 8% promised by the Administration when the stimulus was being considered.  Unemployment in the construction sector is at a staggering 21.8%.
        Mica is far from alone in categorizing the stimulus as a failure.  Mica continued, “A recent poll shows that only 6% of Americans believe the stimulus has created jobs, while another poll shows that 34% of Americans believe in UFOs.
        “Although this hearing focuses on the other programs under this committee’s jurisdiction, as of May 21, 2010, only 25% of the Department of Transportation stimulus funds have been spent.  For DOT and the agencies represented here today, I wish we were doing better.  The Federal Emergency Management Agency has spent less than 1% of its stimulus funds.  The General Services Administration has spent 7%.  The Corps of Engineers has spent 30%.
        “Now that the stimulus is well over a year old, one concern I have is why states are deobligating some of their stimulus money.  There are likely several reasons for this phenomenon, but I think we need to know what those reasons are because as much of the infrastructure stimulus funds as possible should be getting out the door to create jobs.”
        One witness at Wednesday’s hearing highlighted a case in which the stimulus is actually killing jobs, rather than helping to create them.
        Brian Rainville, a teacher whose family farm is in Morses Line, Vermont, testified that the federal government is planning to take a part of the farm and use millions in stimulus funds to rebuild a small border station at the Canadian border.  According to Mr. Rainville, the loss of the land would threaten the ability of his family to maintain the farm and put it out of business.
        According to Mr. Rainville’s testimony, the border station is open eight hours per day and averages 2.5 cars per hour.  Commercial traffic, not permitted through the border crossing, uses other nearby ports of entry.
        Video of Mr. Rainville’s testimony
        U.S. Rep. Mario Diaz-Balart (R-FL), the Economic Development, Public Buildings and Emergency Management Subcommittee Ranking Member, asked witnesses if the federal government should be wasting millions of dollars in stimulus funds to build a new eight-lane border facility at a crossing that sees 40 cars per day.
        The Department of Homeland Security informed the family that they could voluntarily sell the land or face eminent domain action.
        “My family has been at Morses Line for three generations, stewards of a working landscape in good years and bad, but never imagined that an agency of the federal government would attempt to smother our American dream,” Rainville said.
        Mr. Rainville asked that the Committee and Congress remind the Department “that they work for the American people, who must someday repay these stimulus funds with interest.”