COLUMN

FOR IMMEDIATE RELEASE

State Rep. Nick Kotik
D-Allegheny
www.pahouse.com/kotik

 

 

April 2009

LEGISLATIVE ROUNDUP

 

In most of these columns, I like to keep you up to date on state issues or inform you of a state-related service you may be able to take advantage of. This month, I'd like to break from the normal routine and discuss the federal stimulus plan. Whether it's state or federal, as a taxpaying citizen, you have the right to know where your tax money is invested.

 

While all of the pieces of the puzzle are still being fit, and some uncertainties still remain, it's not too early to break down some areas of the $16 billion or so Pennsylvania is expected to receive through the American Recovery and Reinvestment Act.

 

This money will help to fund statewide programs and initiatives such as education, health care, transportation, job training and energy independence. It also promises increased unemployment benefits, a combination of fast-acting tax cuts for working families and longer-term government spending on public works projects.

 

To break it down a little further, a general idea of some funding areas and projects include:

·         a $400 tax credit, starting in April, for approximately 4.9 million Pennsylvania workers and their families;

·         an $8,000 tax credit for first-time home buyers purchasing before Dec. 1;

·         $1.7 billion in temporary tax deductions for those earning less than $125,000 annually ($250,000 for joint filers) who purchase a new car, light truck, recreational vehicle or motorcycle;

·         highway and bridge projects in the state;

·         special education grants;

·         school technology updates;

·         water infrastructure projects.

 

Nationwide, an estimated $53 billion is slated to be spent on education and training. Stressing the importance of a quality education and having a trained workforce is supported through this substantial investment.

 

Investing in education now will ensure that the next generation of Pennsylvania workers is ready and able to meet the challenge of global competition. Providing job training in new and expanding fields will lower the unemployment rate and help today’s workers better compete against foreign competition.

 

According to the U.S. Senate Committee on Appropriations, the economic recovery package includes the following estimated benefits for Pennsylvania:

·         $1.6 billion through the State Fiscal Stabilization Fund to local school districts and public colleges and universities, in addition to incentive grants for meeting key performance measures.

·         $426.6 million for Special Education Part B State Grants to help improve educational outcomes for individuals with disabilities.

·         $25.4 million in education technology funds to purchase up-to-date computers and software and provide professional development to ensure the technology is used effectively in the classroom.

·         $523.8 million for Title I Education for the Disadvantaged to help close the achievement gap and enable disadvantaged students to reach their potential.

·         $15.4 million in State Employment Service Grants to match unemployed individuals to job openings through state employment service agencies and allow Pennsylvania to provide customized reemployment services.

·         $34.4 million in Dislocated Workers State Grants, particularly for grants that support immediate strategies for regions and communities to meet their need for skilled workers.  

 

What does that mean for Pennsylvania schools? For starters, according to the White House, the economic recovery plan provides funding sufficient to modernize at least 412 schools in Pennsylvania so that our children have the labs, classrooms and libraries they need to learn and compete in the 21st century economy.

 

There are a lot of numbers to digest and a lot of projects on the table in all of the areas I mentioned, in addition to education. The majority of this money will be spent through this year and next. This is an ongoing discussion between your state and federal lawmakers.

 

The Web site www.recovery.pa.gov has been set up to allow all residents to dig deeper into this plan and to track where their tax dollars are going.

 

In the meantime, contact me with your questions on what the federal stimulus means to Pennsylvania's budget as I work with my colleagues to address Pennsylvania's economic and budget challenges.

 

As always, stop by or call my Coraopolis office at 412-264-4260 or my Carnegie office at 412-429-5091 to talk to me or someone on my staff about this issue.