The Stimulus and Connecticut

Anyone who keeps one eye on the politics sections of any paper or web site can predict that Republican campaigns will be citing the American Recovery and Reinvestment Act (better known as the “stimulus package”) as a reason to resist the Democratic majorities in Congress. They have a few problems ahead if they choose to make that case in Connecticut.

First, a super-quick, admittedly oversimplified review: last February, Congress passed the bill, and the President signed it into law. The legislation was a mixture of tax cuts and government spending, totaling $787 billion (about $275 billion in tax cuts and $512 billion in spending).

Certainly, the Republicans whose districts are receiving massive infusions of spending to alleviate record unemployment were supportive, right? Wrong. This act passed with zero Republican votes in the House. None. Not one. One hundred seventy-eight Republican representatives (and thirty-seven out of forty Republican Senators) all thought this was a bad idea. Or… some thought it was a good idea, and decided to vote against it for purely political reasons. Country last.

It’s critical to understand that the 2009 stimulus contained substantial tax cuts. Democrats rarely get credit for this, so let’s reiterate: no Republicans supported this in the House, and only three in the Senate. OK, well, how much tax relief? According to the Tax Policy Institute’s calculations, after-tax income rises for everyone. Every single taxpayer.

The individual tax provisions in ARRA will reduce taxes for households at all income levels. The child tax credit and EITC provisions focus tax cuts on low income tax units, extending the alternative minimum tax patch substantially lowers taxes for wealthy households, and other provisions primarily benefit the broad middle class. The largest gains, measured as a percentage of after-tax income, go to the poorest tax units: average after-tax income will climb 4.6 percent for those in the bottom quintile. In contrast, taxes will fall much less for the top quintile of tax units, whose average after-tax income will rise only 1.5 percent.

It’s one year later, and I keep reading about Governor Rell announcing new spending in our state funded by the stimulus. Some headlines:

Conn. Broadband Lands $1.8M in Stimulus Funds January 14, 2010

Connecticut has pulled in $1.8 million in federal stimulus funding to apply to broadband mapping and data collection, according to an announcement by Gov. M. Jodi Rell.

Rell Says $4.5 Million in Stimulus Funds Will Be Used to Boost Use of Geothermal Energy January 4, 2010

Governor M. Jodi Rell said today the state is dedicating $4.5 million in federal stimulus funds to help homeowners, businesses and nonprofit groups pay for the installation of geothermal heat pump systems, an investment that will lower fuel and electricity bills and promote use of alternative energy.

Rell: DOT Snow Plows Now Environmentally Friendly January 6, 2010

More than $150,000 in federal stimulus funds have been used to retrofit 146 state highway plow trucks with emission-control systems to reduce harmful diesel pollution, Gov. M. Jodi Rell announced recently.

Go to recovery.gov and type in 06840 on the map. So far, the Town of New Canaan has received about $1 million for funding public school “special education and related services to children with disabilities” and another $137,538 for general education. Oh, and an additional $76,000 for (what I think are) energy-efficient renovations to schools. Who’s against any of that? Anyone? Bueller? Anyone?

Oh, and how about this one?: Stimulus Keeps 56,000 CT Residents Out Of Poverty

Again, Democrats think this a good idea, and Republicans will probably campaign against it.

Our governor won’t be bashing the stimulus any time soon. On the contrary, according to the New London Day:

Rell’s public relations staff released at least 86 press releases in 2009 highlighting the governor’s application for or distribution of stimulus money for everything from nutrition for the poor to rail transit improvements to solving criminal “cold cases,” to blocking hospital-borne infections to vaccinating children against Rotavirus.

Connecticut’s five Democratic representatives, our Democratic Senator and our independent Senator all voted for this. On the other hand, Republican Senate hopeful Linda McMahon is already campaigning against it. I suspect Jim Himes’ eventual Republican opponent will as well. Fools. Perhaps they think nutrition for the poor is a waste of money. Or maybe they hate the improvements to rail transit (yeah, no one around here uses that, right?). Or perhaps Republicans aren’t interested in helping police or keeping children healthy. The one Republican in the state who doesn’t need to pander for right-wing votes seems to think the Democratic party did the state a great service by passing the stimulus bill. Her name is Jodi Rell.