|
Main Menu
|
|
February 18, 2009 |
 by Gina Hamilton
Coastal Journal staff
WASHINGTON D.C. - On Friday night, Democrats pushed through Congress the $787 billion stimulus bill, hoping to combat the economic crisis. Maine Senators Olympia Snowe and Susan Collins joined Pennsylvania Senator Arlen Specter as the only Republicans to vote for the bill on the Senate side; no Republicans voted for the bill in the House. Seven Democrats voted against it in the House as well.
Bipartisan it may not be, but it represents hope for Maine’s economic recovery.
State officials pledged Thursday to set up a transparent process to track how the federal stimulus money is spent in Maine. No one is sure yet how much money will flow into the state, but Sen. Collins estimated the following numbers:
• Under the bill, Maine will see an increase of $470 million in federal Medicaid dollars (FMAP) over the next 27 months.
• Maine’s share of the “State Stabilization Fund” will be more than $196 million. These dollars will provide much-needed budgetary support for elementary, secondary, and postsecondary education and for other high priority needs such as public safety, and the modernization, renovation, and repair of K-12 and postsecondary schools.
• Maine will receive $42.8 million for the Weatherization Assistance Program and $27.5 for the State Energy Efficiency Program , administered through Efficiency Maine.
• Maine will receive an additional $116,295,000 in food stamp benefits (The Supplemental Nutrition Assistance Program [SNAP]). Those receiving food stamps will see an increase of 13.6 percent in their benefit. The bill also includes a provision to enable families in need to receive food stamps for a longer period of time.
• Maine School districts will receive $37.5 million in Title I-A Grants
• The State of Maine will receive $11 million in Title I School improvement grants
• In total, the bill includes more than $53 million for special education funding in Maine through the Individuals with Disabilities Education Act (IDEA). This will benefit school districts throughout the state.
• Provides a total of $15.64 billion for Pell Grants. These dollars will increase the maximum Pell Grant by $500, for a maximum award of $5,300 in 2009 and then increase to $5,550 in 2010.
Much of the bill will fund transportation, energy, and other infrastructure projects that will create jobs. An example of how Maine will benefit includes:
• $133 million for highway investments in Maine.
• $50 million for water and sewer infrastructure in Maine
• A new “Making Work Pay” tax credit that will provide $400 per worker and $800 per couple in a refundable tax credit to offset the 6.2 percent payroll tax on the first $6,450 of earned income.
• A total of $16.7 billion for retirees, disabled veterans and SSI Recipients. Mainers who do not qualify for the “Making Work Pay” tax credit will receive $250 cash payments.
• The bill restores cuts of Medicare payments to hospice, resulting in $400,000 for Maine’s hospices.
• 17,000 families in Maine will be eligible for a new tax credit to make college affordable.
• Provides crucial relief to Maine’s softwood lumber industry by waiving the requirement that they return funds paid to them after Canada violated U.S. trade law.
• Temporary suspension of taxes on Unemployment Insurance Benefits. This will benefit more than 33,000 Mainers. And the bill includes a $100 a month unemployment benefit increase.
The money will be overseen by the Governor’s office.
Ryan Low, Baldacci's finance commissioner, said the money coming into the state will be kept in separate accounts for each department. For example, if the state gets $5 million from the stimulus bill for bridge construction, the money would be kept in a Department of Transportation "bridge stimulus" account.
"What we wanted to make sure we could do is segregate and follow that federal stimulus dollar as it comes into state government and it goes out of state government," Low said.
Agencies will have to file a form called a ‘financial order’ to request funds, and the governor, Low and a state budget officer will have to sign off on each one. Then, the orders will go to the legislature, where the Appropriation Committee will have a chance to make statements about each expenditure, but will not have the power to block the spending.
"My hope and understanding is the governor will work closely with the Legislature on both budgeting the money and spending the money," said House Speaker Hannah Pingree (D-North Haven).
David Farmer, Baldacci’s chief of staff, said the Governor's Office plans to work with lawmakers.
Republican and Democratic legislative leaders have been meeting for several weeks with each other and with the Governor's Office on the process for handling the stimulus money.
The Legislature set up a trust fund for any Medicaid money to come with the stimulus package, giving it some control over how funds will be spent. It's looking to do something similar for any energy-related projects, which will likely be new initiatives and need more legislative oversight, Pingree said.
Senate Republican Leader Kevin Raye (R-Perry) said lawmakers made it clear to the governor that the funds should be spent on infrastructure projects of lasting value. Raye said lawmakers don't want the money spent on programs that would grow state government or prop up existing programs.
Some money might go directly to communities, although how much was unknown by presstime. Local school committees or city councils would have oversight of those funds.
 |
|
|
Show/hide comments
Show/hide comment form