How the economic stimulus act helps you

 

Through ARRA, we’re creating jobs, helping our neighbors, and addressing problems that we’ve neglected for too long. Generally, 40% of the money will go to federal tax relief and state and local fiscal support.  Twenty-five percent will pay to expand health and social services for people affected by the recession.  The remaining 35% will create jobs, update the infrastructure, and provide education and training opportunities.

 

Don’t be distracted by talk about “earmarks”.  While ARRA contains some specific projects, it also includes strict provisions for accountability and transparency.  All recovery act projects must benefit the public.  There are rules in place to ensure that this money is spent properly.

 

Pennsylvania will receive about $16 billion.  The largest piece goes directly to citizens.  We’ll see more money in our paychecks, tax credits for our 2009 tax returns, increased unemployment benefits, and better health and nutrition services for our most vulnerable neighbors.  There are projects to increase energy independence, improve schools, expand college aid, and provide job training.  That money will create and save about 143,000 jobs in Pennsylvania.   Look at www.recovery.pa.gov for details.

 

In Allegheny County, ARRA will pay to improve the Fort Duquesne Bridge, Liberty Tunnels, Route 28, and the US Routes 22/30/60 interchange.  Other tasks include upgrading the condition and energy efficiency of public buildings and other public works projects.  That creates jobs for the construction firms and contractors.  

 

You won’t see “stimulus jobs” advertised online or in the newspaper.  It doesn’t work that way.  State and local governments will put contracts up for bid through their usual process. The contractors that win the bids will hire employees by their usual methods.  

 

The projects will require materials, supplies, and services from other businesses.  And that means jobs for those companies.  All of those employees will have paychecks to spend on groceries, clothing, home furnishings, restaurants, cars, vacations, rent and mortgage payments, utilities, entertainment, and other expenses.  And that means jobs in those areas.

 

The people who get all of those jobs will pay taxes back into the federal, state, and local treasuries.  Some of them will put money into savings accounts, which will generate funds for banks to lend to other local families and businesses for homes, cars, and other projects. That’s the ripple effect that economists talk about.

 

Now I’ll bet that either you will benefit directly from at least one of those plans, or you know someone who will.

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For more information,

Go to the White House recovery site, www.recovery.gov

Or the Pennsylvania site, www.recovery.pa.gov.