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Show me the money! The governor is ready to spend stimulus funds./AP
California’s bite of the stimulus apple recently approved by Congress will pour billions into the state, primarily in so-called “shovel ready” projects that will put people back to work.
What it won’t do, according to a report today in the San Jose Mercury News, is spare state residents from an additional income tax surcharge and related budget cuts passed by the state Legislature during its recent historic, often laughable, and at all times controversial, budget deal.
The cuts would be avoided if the federal stimulus package money offset $10 billion in projected spending from the state’s primary budget fund, according to the report. Projections have it pegged to only replace $8 billion, meaning the surtax and cuts will remain.
The bottom line to taxpayers: anywhere from $10 to hundreds of dollars added to your income tax bill next year, despite nearly three hours of public testimony urging state officials to not add the tax.
The latest on how the money will be spent in California can be found at the state’s recovery Web site here. The Web site is not as detailed as one would expect, especially with most of the space being taken up by pictures, ambiguous graphs and feel-good quotes. But what is useful is the press releases, which document the approved expenditures as they are announced.
Two of the latest authorize more than $1 billion in spending:
First, the California Transportation Commission approved 57 statewide projects for a total of $625 million on March 11. A total of $2.57 billion for transportation in California was earmarked by the Obama administration.
This is about jobs-jobs-jobs,” Caltrans Director Will Kempton said. “We plan on starting the first of these projects within 60 days – putting people to work as soon as possible. Caltrans will use the $625 million in federal economic stimulus funding to leverage other state resources, enabling construction to begin on hundreds of projects throughout California.”
Second, an additional $412 million will go toward the state’s weatherization proram and energy efficency grants, according to a press release issued by the U.S Dept. of Energy last week.
The energy efficiency funding for states is an important investment in making American more energy indepdendent, creating a clearner economy and creating more jobs for the 21st century that can’t be outsourced,” Vice President Joe Biden said.
The weatherization program will allow an average investment of $6,500 per home in insulation, upgrading appliances and various other efforts to save money and reduce energy use. Grants and rebates will be available through the state, the press release stated.
I’ll continue to track the expenditures of the federal billions being poured into the state.
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