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How the stimulus bill helps Ohio
$8 billion share will fund projects, patch the budget
Friday,
February 13, 2009 3:17 AM
THE COLUMBUS DISPATCH
FILE
From the stimulus package Ohio will get about $914.6 million for construction and repair of roads and bridges, out of $27.5 billion nationally.
If Congress approves the compromise stimulus package, this is some of the money that will come to Ohio: MEDICAIDAbout $3 billion* to help pay for the state-federal program that provides health care for the poor. In all, $87 billion was allocated to states. STATE AIDOhio's share was uncertain last night, but $53.6 billion was allocated to help states cover shortfalls in their budgets and repair schools. This includes $39.5 billion to local school districts to prevent cutbacks and modernize schools. WORKING TAX CREDITMore than 4.5 million people in Ohio will be eligible to receive a $400-per-worker tax credit ($800 for couples), including those who pay Social Security taxes but do not earn enough to pay federal income taxes. The credit will be reduced for individuals earning more than $75,000 a year ($150,000 for couples). The stimulus plan devotes $116 billion in 2009 and 2010 for the tax credit. NEW AUTO DEDUCTIONThe plan contains $1.7 billion to allow people to deduct the sales tax they pay when they buy a new car. The credit would be phased out for individuals earning more than $125,000 a year. NEW HOME TAX CREDIT$6.6 billion is in the bill to allow first-time homebuyers to claim a $8,000 credit for homes bought by the end of June. ROADS AND BRIDGESAbout $914.6 million* will flood into Ohio for construction and repair, out of $27.5 billion nationally. MASS TRANSITAbout $203 million* for Ohio, out of $8.4 billion nationally. WATER/SEWER PROJECTSAbout $283 million* for Ohio, out of $6 billion nationally. *Preliminary figures for Ohio. Final state numbers were unavailable. Sources: Associated Press, Dispatch DispatchPolitics
WASHINGTON -- The federal spigot is about to be turned on in Washington, with billions of
taxpayer dollars soon to pour into Ohio if the U.S. House, as expected, approves a $789 billion
stimulus package today and the Senate quickly follows suit.
Democrats say the $8 billion or so expected to flow into Ohio will help create or save thousands of jobs, allow Gov. Ted Strickland to reduce the state's budget shortfall and give more than 4 million Ohioans at least a modest tax break. Even so, Strickland speculated yesterday that the package still could leave a hole of $400 million or $500 million in his proposed $54.7 billion, two-year budget, based on previous assumptions of how much federal funding would be approved. The governor said he needs more details about the final bill and last-minute changes, but he said that additional cuts to his proposed budget are possible, except in education spending, which he vowed to protect. The massive spending and tax-cut legislation, which backers say will deliver a crucial jolt to the nation's battered economy, is expected to be signed into law by President Barack Obama no later than this weekend. Obama has said that the measure would create or save more than 3 million jobs nationwide.' Ohio stands to gain about $900 million to build or repair roads and bridges. State officials had identified $2.7 billion in "shovel-ready" projects -- including safety enhancements, reduced-pollution buses, new roads and bridges -- so only a third of the transportation wish list will be filled. State Transportation Director Jolene Molitoris said yesterday that she's working with Strickland's office to determine which projects will be funded. Ohio Republicans assailed the House-Senate compromise, saying it spends too much money and offers millions of people a tax break that amounts to $13 a week. "I don't believe anyone believed that this 'era of change' meant a few more coins jingling in their pocket," said Jessica Towhey, a spokeswoman for U.S. House Minority Leader John Boehner, R-West Chester. A married couple who have two children and earn $35,000 a year would save $1,200 on their 2009 taxes, according to an analysis by Deloitte Tax. If the couple make $125,000, they'd save $3,700 because of the bill's one-year fix in the alternative minimum tax. GOP Rep. Pat Tiberi of Genoa Township, who like all other House Republicans voted against the initial House bill, said yesterday he had not seen the details of the final agreement. But based on reports he had seen, he expected to vote no today. Tiberi said the housing crisis that sparked the economic downturn should have been targeted, with much more aid for struggling homeowners included in the bill. Obama said in an interview Wednesday with The Dispatch and other regional newspapers that he intends to roll out a plan soon that will address the type of concerns aired by Tiberi. "Part of the money that's going to be allocated is going to go directly to the issue of home foreclosures," Obama said. He said he will "lay out how we are going to approach helping homeowners, not only those who are at risk of foreclosure, but also people who have been making their mortgage payments on a consistent basis but have seen the value of their home drop to less than their mortgage, and as a consequence have a very difficult time even trying to take advantage of low interest rates to refinance." Republican Sen. George V. Voinovich, a former Ohio governor, indirectly criticized Strickland, a Democrat, for being "a little bit presumptuous" in budgeting for federal money not yet approved and using federal tax money to fill state budget holes. "The federal government is not in a position to bail out states," Voinovich told The Plain Dealer. "We have a federal responsibility and a local responsibility, and as a result of that, we have to be very careful." Strickland defended his use of expected federal money to deal with a financial crisis caused by the national recession. He criticized Voinovich for rejecting the stimulus bill while voting for a $700 billion bailout for banks last year. "What's more important?" Strickland said. "Providing essential services to the people of the state of Ohio, or literally allocating hundreds of billions of dollars to financial institutions -- much of that money being used, in my judgment, inappropriately or not used to really benefit the people of our state?" Obama, in a speech at a Caterpillar factory in East Peoria, Ill., touted the stimulus plan by saying the company's chief executive, Jim Owens, had told him that Caterpillar will rehire some of the 20,000-plus workers it plans to lay off. But shortly afterward, Owens said the heavy-equipment maker probably will have to lay off more employees before it starts thinking about rehiring. One last-minute addition to the stimulus bill was a $3.2 billion tax break for General Motors Corp. that would allow it to use current losses to claim refunds for taxes paid when times were good. GM got a $13.4 billion federal bailout late last year and is expected to receive more federal aid in 2009. Meanwhile, lingering controversy over school-modernization money and a scaled-back tax break for businesses forced a delay in final votes on the stimulus legislation. But by nightfall yesterday, with Democratic leaders eager for final passage by the weekend, all issues were reported settled. House leaders announced a vote for today, with the Senate to follow later in the day or over the weekend. Dispatch reporter James Nash, special correspondent Aoife Connors and the Associated Press contributed to this story.
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