Federal Stimulus Plan is a Chance to Put Politics Aside and Do What is Needed

This week President Barack Obama signed a stimulus bill into law that will help Michigan by funding necessary programs and infrastructure projects. President Obama has done a great service to our country by acting quickly and trying to engage and include Republicans in the process.

However, I am disappointed by the resistance he met from Congressional Republicans and the resistance we are now seeing from my Republican colleagues in the State Senate. We must put this partisanship aside and work instead to use this stimulus plan to put Michigan citizens back to work.

Michigan’s share of the $787 billion dollar stimulus package will be about $6.7 billion. According to federal officials, the stimulus package could create as many as 109,000 new jobs in our state. But not all workers will have to wait to see the benefits. Most wage earners will see tax breaks and more money in their paychecks that will eventually total $400 for individuals and $800 for couples. Social security recipients will see a one-time $250 payment as will those on Supplemental Social Security Income, and veterans receiving disability and pensions. Unemployed workers would see a $100 increase per month, and unemployment benefits would be extended for 162,000 laid-off workers. There would be $105.9 million for workforce investment, with $87.1 million for dislocated workers and $16.1 million for the state’s unemployment system.

Some of the stimulus money is earmarked for certain services but a portion of it is not. It will be up to the governor and lawmakers to decide how that portion is spent. While the governor waits to hear exactly how much money is coming, a recent presentation by the nonpartisan Senate Fiscal Agency (SFA) outlined how much money they believe we will see.

The stimulus package will help states with Medicaid costs. Michigan should receive $882.6 million this year, and another $931.9 million in extra Medicaid funding next year. Other stimulus money will go for prevention and wellness programs, projects to modernize health information technology systems, and to help subsidize health insurance programs for the unemployed under the COBRA program.

Education funding would get a boost with $163.5 million for “Education Incentive” grants, $419.5 million for special education funding, $24 million for school technology programs and $3.8 million for teacher quality enhancement. The stimulus plan would also create the American Opportunity Tax Credit to make college more affordable for families. This new $2,500 partially refundable tax credit could help as many as 121,000 Michigan families.

In addition to the stimulus bill, President Obama also announced a program to address the foreclosure crisis. The $75 billion plan would offer incentives to companies to modify home loans to help homeowners avoid foreclosure. Among the features of President Obama’s plan is one to encourage lenders to restructure loans so that a mortgage payment is no more than 31 percent of a person’s income. The government would then reimburse the lender up to half the difference between the old and new payments. Lenders who have received money from the federal government under the recent bank bailout would have to participate in the plan.

The actions of President Obama and his Congressional allies will help put Michiganders and all Americans back on the right track. These plans will not solve all of our problems, but they are the bold actions that we need to start our economic recovery. I look forward to working with my colleagues here in Michigan to put this plan to work and improve the lives of hardworking Michigan citizens.