The Recovery Act Blog

  • "It's always good to get out of Washington for a little while"

    Posted by Jesse Lee on March 18, 2009 at 8:03 PM EDT

    The President just finished up in Costa Mesa, California holding a town hall with local residents, telling them "It’s always good to get out of Washington for a little while and come to places like Costa Mesa – because the climate’s a lot nicer and so is the conversation."
    He started off talking about the AIG bonuses that have been dominating the news:
    I know a lot of you are outraged about this. I’m outraged, too. It’s hard to understand that a company that is relying on extraordinary assistance from taxpayers to keep its doors open would be paying anyone lavish bonuses.  It goes against our most basic sense of what is fair and what is right. It offends our values.
    But these bonuses, outrageous as they are, are a symptom of a much larger problem. And that is the system and culture that made them possible – a culture where people made enormous sums for taking irresponsible risks that have now put the whole economy at risk. So we are going to do everything we can to deal with these specific bonuses. But what’s just as important is that we make sure we don’t find ourselves in this situation again, where taxpayers are on the hook for losses in bad times and all the wealth generated in good times goes to those at the very top.
    That is the kind of ethic we’ve had for too long. That is the kind of approach that led us into this mess. And that is something we have to change if we’re truly going to turn our economy around and move this country forward.
    He went on to talk about the Recovery Act, the budget, and the economy at large
    You know what I’m talking about.  I don’t need to tell you these are challenging times. I don’t need to tell you this because you’re living it every day. One out of every ten Californians is out of work. You’ve got one of the highest foreclosure rates in the nation. And budget cuts are threatening the jobs of thousands of teachers across this state. But here’s what I want you to know: we are not only going to make it through this crisis, we are going to come out on the other side a stronger and more prosperous nation. I can’t tell you how long it will take or what obstacles we will face along the way, but I can promise you this – there will be brighter days ahead.
    We’re already seeing signs of progress. Because of the Recovery Act that your two outstanding senators, Senator Feinstein and Senator Boxer worked so hard to pass and that I signed into law the other week, a new hospital will be built at Camp Pendleton that will give our servicemen and women the care they deserve. Over in Inglewood, the police department is planning to expand its staff by thirty people. And Orange County is hoping to add a new lane on SR-91, creating about 2,000 jobs, and easing congestion in the process. These are just a few of the 396,000 jobs we will create or save in California – and the 3.5 million jobs we will create or save across America – over the next two years.
    During the Q&A portion of the town hall he assured the people of Costa Mesa that their concerns about their educational system would be met with real investments in his budget. He expressed support for the idea that the banks and companies bilking people on credit cards should be put in check by a credit card holders’ bill of rights. He explained why he’s had to go against his own gut and everybody else’s to help prevent banks from failing even when it was due to their own irresponsibility because of the cascading financial disasters that would ensue without action. He closed on the auto industry, talking to one out-of-work auto worker about how the future will belong to the companies that master the next big advances in fuel efficiency.
    It was the kind of conversation that’s hard to find inside Washington, look for more like this from the President and his Administration.

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  • MCTF Meeting 2: The Recovery Act and the Middle Class

    Posted by Jesse Lee on March 14, 2009 at 4:11 PM EDT

    Having held an amazing first meeting in Philadelphia around green jobs, the Middle Class Task Force has announced their second official meeting. It will be held on March 19th in St. Cloud, Minnesota as a town hall, titled "Road to Recovery: Building a Strong Middle Class Starting with the Recovery Act."
    The town hall format will be a shift from the first meeting which focused on expert panels and presentations, and will have a focus on questions, concerns and ideas from average citizens. You will be able to submit your questions through www.AStrongMiddleClass.gov, and audience members coming together at the New Flyer Bus Company in St. Cloud –- a low-emission mass transit company that has flourished even as the economy declined -- will have their shot as well.

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  • More from the inbox: teachers, green jobs, interaction

    Posted by Jared Bernstein on March 13, 2009 at 12:11 PM EDT

    Jared Bernstein here again, the Executive Director of the task force and Chief Economist and Economic Policy Advisor to the Vice President. In the last month, thousands of you visited astrongmiddleclass.gov and shared your thoughts with the Middle Class Task Force on how we can get the American middle class back on its feet.  You shared with us your own personal hardships, and you shared your ideas to address them.  I want to go through again and highlight a few posts that struck me as I was reading through your responses.  
    Many of you wrote to us about your concern regarding the state of American education. Many people said, and I agree, that education is one of the keys to making America competitive in the world economy, and revitalizing the American middle class. 
    Karen from Newell, AL wrote "I am a school teacher in this very rural place…. This economic crisis is really hurting this little place. We will lose 7 teachers at my school which translates to increasing my class size from 15 to 20. This may not seem like much but it makes a big difference to students who need a lot of individual help. This is the only extra help some of my first graders get."  Karen, thank you for all the work you do to educate our children and provide them with new opportunities.  The American Recovery and Reinvestment Act is the largest investment in education in our nation’s history---to prevent teacher layoffs, make key education improvements and help make college affordable.  It will help prevent devastating cuts to education like the one Karen described by providing $53.6 billion to states and school districts to prevent layoffs and cuts in critical education services and $25 billion in support for educating at risk students and those with special needs. In some places, that’s already happening.  We need to prepare our children to succeed in a 21st century economy, and that starts with education.  
    Joyce from Lake Forest Park, WA wrote "I am concerned about how President Obama's stimulus package will help people in construction industries.  New green jobs will be created, but how will this help engineers and architects keep and expand their businesses?"
    This is a great question.  The creation of green jobs is extremely important and will play a part in creating a sustainable future for ourselves and our children.  Just this morning the Vice President swore in another member of our Task Force, Labor Secretary Hilda Solis, who has been one of the greatest champions of green jobs in the country for years. The American Recovery and Reinvestment Act will create or save 3.5 million jobs in America—75,000 in Joyce’s state alone.  What we’re doing is making sure that state and local governments have the money to fund job-creating projects, like building and reinforcing roads, dams, and bridges; making public housing more energy efficient; and making improvements to affordable housing.  These jobs won’t solely provide work for construction workers, they’ll also create more demand for engineers and architects to design the projects.
    When the money is distributed at the state and local levels, we plan for it to be put to use where your community needs it most, whether you need teachers, firefighters, cops, paramedics, or bus drivers.  President Obama put my boss, Vice-President Biden, in charge of overseeing the distribution of the funds that, among many things, will create jobs that will restore the prosperity of the middle class. 
    Finally, several people, like Keith from Sitka, Alaska suggested that the Task Force have something with "average, middle-class Americans in an open forum to listen to what problems they face and what solutions they can offer."  Keith, at our next meeting in March, that’s exactly what we will be doing, listening to your stories and taking questions.  I look forward to continuing this dialogue both in our task force meetings and here on the web.

  • Recovery in Action: AZ, KS, MD, MA, MS, MO, OH, PA, SC, VA

    Posted by Jesse Lee on March 13, 2009 at 11:25 AM EDT

    Before beginning this installment of "Recovery in Action," a slightly different kind of story out of California courtesy of the LA Times:

    Chris Schultz breaks down as he worries that his younger brothers will become homeless because his family is four months behind in rent.

    Evelyn Aguilar's home was foreclosed, so her family is among a dozen people sharing a one-bedroom apartment.

    Victoria Gonzalez may delay college for a year to support her family.

    These students, all 17, and 14 of their classmates tell their tales in "Is Anybody Listening?", a nine-minute video made by students at Village Academy High School in Pomona. The production quality is minimal; students speak directly to the camera in front of a blue background, laced with footage of foreclosed homes, abandoned storefronts and others advertising going-out-of-business sales.

    But the tales of families dealing with the economic crisis are deeply personal.

    This week, in his first major speech on education since taking office, President Obama described the video and spoke directly to the Pomona students.

    "I am listening. We are listening. America is listening," the president said. "And we are not going to rest until your parents can keep their jobs, your families can keep their homes, and you can focus on what you should be focusing on: your own education."

    Although the subject is dispiriting, the story of how the documentary came to be made at a low-income yet high-achieving public school -- and ended up in a speech by the president -- is extraordinary.

    Read the rest, or watch the video.  Now for a glance around the country to see what the recovery act is doing to address stories like those:

    Arizona [East Valley Tribune, 3/10/09]:

    About $7 million in federal stimulus money will enable Maricopa Workforce Connections to help hundreds more displaced workers upgrade their skills for future employment. The U.S. Department of Labor this week announced state allotment levels for employment and training programs funded under the American Recovery and Reinvestment Act of 2009. The work force investment system will use the $3.5 billion to help Americans get back to work through the national network of one-stop career centers. "It can be used to help folks who have been laid off through education and training programs," said Peggy Abrahamson, Department of Labor spokeswoman. "Primarily the states do this through the one-stop career centers, and there's well over 3,000 around the country."

    Kansas [Topeka Capital Journal, 3/12/09]:

    Money from the federal stimulus program may reduce the three-month wait time for an appointment at the Shawnee County Health Agency Clinic. Shawnee County commissioners authorized Anne Freeze, health agency director, to speed the process of preparing the application and sending it to Washington.

    Maryland [Gazette.net, 3/11/09]:

    Stimulus road workers happy to be back on job… When American Infrastructure won the contract to repave a section of New Hampshire Avenue, Bryan White, 47, of Aberdeen, was one of the employees who got the call to return to work.  "It's wonderful," White said of the project, cited as the first in the nation under the $26.6 billion released by President Barack Obama from the American Recovery and Reinvestment Act to state and local governments to repair and build roadways and bridges. "It's going to create more jobs. I know I'm happy."

    Massachusetts [The Boston Globe, 3/12/09]:

    The city plans to put its first millions in federal stimulus cash to work as early as next month as part of the redevelopment of the Washington-Beech housing development in Roslindale, Mayor Thomas M. Menino said yesterday. Future phases of the redevelopment, which already have received significant federal funding, will mean a total of 342 new affordable housing units at Washington-Beech and in the surrounding area. Menino said yesterday that he believes the planned April 1 start date of construction on the Washington-Beech project made the city one of the first in the nation to use stimulus dollars aimed at housing. Other stimulus-funded projects slated to begin in 2009 include the installation of more energy-efficient lighting and heating at several housing developments ($5 million); upgrades to bathrooms in several of the housing authority's oldest developments ($10 million); heating and cooling system improvements ($5 million); and security camera installation ($1 million). "Washington-Beech is just the beginning," Menino said.

    Mississippi [Biloxi Sun-Herald, 3/12/09]:

    Gil Carmichael was as happy as a kid in a candy store that President Obama put $9.3 billion for high-speed rail transportation and upgrading Amtrak into the $785 billion economic recovery package. Carmichael, otherwise a Meridian businessman and former Republican leader, for 20 years since he served as Federal Railroad Administrator has been preaching a vision of a vastly expanded national system of passenger rail transportation he calls "Interstate II." In the Obama recovery package is $8 billion for some 30,000 miles of inter-city high-speed rail transportation and $1.3 billion for Amtrak whose ridership has risen since gas hit $4. The high-speed rail system would significantly benefit all states, even a rural state like Mississippi, as Carmichael will explain in a moment. He praised Obama's inclusion of the rail system in his package: "President Obama clearly understands this necessary new approach to meeting 21st century transportation needs."

    Missouri [News-Leader, 3/11/09]:

    Missouri will get about $525 million in federal funds for transportation -- a slice of which will be for road projects in the Ozarks. The American Recovery and Reinvestment Act aims to create jobs and jump start the economy, Kirk Juranas, Missouri Department of Transportation district engineer for District 8, said Tuesday evening at a public meeting. "This is about jobs," he said. "Jobs, jobs, jobs." Stimulus funds invested in Missouri's transportation infrastructure will directly and indirectly support nearly 22,000 jobs statewide, according to MoDOT… "These projects all have to be delivered fast," Juranas said.

    Ohio [Oxford Press, 3/10/09]:

    More than 275 jobs could be created or retained locally as a result of stimulus funds that should hit the area this summer. The Ohio-Kentucky-Indiana Regional Council presented its list of projects to potentially receive federal stimulus dollars during a public hearing Monday, March 9. The final list should be approved by the OKI board Thursday, said Brian Cunningham, spokesman for the agency. With an emphasis on "shovel-readiness," the OKI staff also selected projects for their ability at improving commerce or creating jobs, he said.

    Pennsylvania [The Philadelphia Inquirer, 3/12/09]:

    Under Gov. Rendell's proposal for spending federal education stimulus money, Philadelphia schools would stand to get $361 million in additional funding next school year, and suburban districts would get a total of $88 million in new funding. That money is part of $1.1 billion in stimulus money that Pennsylvania would spend on assorted education programs starting in July, according to a plan released yesterday by the state Department of Education. About a third of that money would go directly to a handful of programs targeted to low-income students and special education. Rendell wants to designate the rest of the money - totaling $728 million - to two broad programs. One would supplement the state's regular education funding, which otherwise could face cuts reflecting the poor state of economy. The other would represent new money that districts could use on a variety of programs, including classroom instruction, school renovations, and technology upgrades. It could also be used to make up for any lost school-tax revenue.

    Virginia [Virginia Pilot, 3/12/09]:

    The city will receive about $20 million from the federal stimulus package, and that's in addition to tens of millions of dollars the school system and Hampton Roads Transit will receive. The City Council received a breakdown Tuesday of funds the city has confirmed it will get, including $9.2 million to rehabilitate public housing and $6 million to improve roads. City Manager Regina V.K. Williams said the city has applied for added funds, including $16 million to improve sewer systems in some of the city's oldest neighborhoods…. "You put it all together, and construction firms will be hiring new people and paying overtime to some of their existing employees," she said.

  • Accountable Recovery

    Posted by Jesse Lee on March 12, 2009 at 7:07 PM EDT

    Today President Obama made clear that as great as the demands on our government are, accountability will never fall by the wayside.
    First, this morning leaders from across the country descended upon Washington with one mission in mind: implementing the Recovery Act. Vice President Joe Biden invited implementation ‘czars’ and representatives from all U.S. states and territories to take part in the White House Conference on American Recovery and Reinvestment Act Implementation.  The conference was a chance for state officials to bring forward ideas and share best practices, as well as hear presentations from a number of Cabinet Secretaries and Administration officials, including Earl Devaney, Chairman of the Recovery Act Transparency and Accountability Board. 
    "States have a huge responsibility in partnering with us to ensure that dollars spent as part of the Recovery Act are spent wisely, with transparency and accountability," said Vice President Joe Biden, who has been tasked by the President to oversee the implementation of the Recovery Act. "Our hope for this conference is to meet face-to-face with the state officials and streamline this implementation process so we can get our economy running again."
    During the conference, President Obama stopped by to share a few words of encouragement:
    So my main message to all of you is I think you're up to the task; I think you guys will do extraordinary work with using these precious tax dollars that the American people have given up in order to deliver on the kind of economic growth -- short-term and long-term -- and job creation that's going to be so important.

    But we're going to need to work really hard and we're going to have to make sure that every single dollar is well spent.  We've got to go above and beyond what I think is the typical ways of doing business in order to make sure that the American people get the help that they need and that our economy gets the boost that it needs.

    The White House Recovery and Reinvestment Act Implementation Conference is part of a large effort to ensure that dollars invested and spent as part of the Recovery Act are effective, transparent, and efficient.  To learn more about today’s event, read the President’s and
    Vice President’s full remarks.
    Likewise, when the President spoke to the Business Roundtable at the St. Regis Hotel in Washington this afternoon, he had a similar message of accountability on the financial stability leg of the stool:
    [C]ritical to that solution is an honest and forthright assessment of the true status of bank balance sheets -- something that we've not yet had.  And that's why the Treasury has asked bank regulators to conduct intensive examinations or "stress tests" of each bank.
    When that process is complete next month, we will act decisively to ensure that our major banks have enough money on hand to lend to people even in more difficult times.  And if we learn that such a bank has more serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.
    I intend to hold these banks fully accountable for any assistance they'll receive, and this time they'll have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer.
    The crisis we face is the most severe in decades, and it will take an approach that addresses every facet of the crisis at once, but the scale of the problem only means accountability is more important than ever.

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  • Recovery in Action: CA, VT, GA, TN, MD, MI, MN

    Posted by Jesse Lee on March 11, 2009 at 11:36 AM EDT

    The news on the economic front is still grim, but already the recovery package is saving and creating those jobs in towns across the country, stemming losses and spurring growth in ways that affect real families and communities. Here are just a few stories plucked from the local news over the past few days.

    California [U.S. News and World Report, 3/9/09]:

    Obama's Stimulus Keeps the Solar Power Dream Alive for Start-ups… When the $787 billion stimulus bill was signed in February, there were more than a few sighs of relief at BrightSource. The bill showered renewable energy with new funds, including $60 billion in loan guarantees for companies building wind and solar plants. BrightSource was among a small group of start-ups that had already been selected for Department of Energy loans, but the stimulus vastly increased the funds available. It also loosened rules governing tax credits, greatly expanding the pool of potential investors. After months of wondering where to turn for funding, BrightSource had been given a reprieve. "Now, all of a sudden," says Jenkins-Stark, "I have a very different worry proposition for half the capital of our project."

    Vermont [WCAX TV, 3/9/09]:

    Governor Jim Douglas hauled out the barricade to officially close the Bridge Street bridge to traffic. Such construction doesn't usually draw this much attention, but it's the first project in the state to put federal stimulus dollars to work… Eleven projects have finished or nearly finished the bidding process. Among them are plans for improving or replacing bridges in Barre, Brownington, and East Montpelier, and paving roads in Colchester, Rockingham and Royalton. Together, the 11 projects use $33.6 million in federal stimulus funding. Another 20 projects are already scheduled to go out to bid.

    Georgia [WJBF, 3/5/09]:

    Virginia Lequeux, lives in Peabody Apartments: "My whole apartment, I mean I’ve been blessed…blessed." Just recently she was upgraded to a newly renovated floor. New security cameras, laundry facility and even a dishwasher in her apartment.  Up until about a year ago, that was the plan for the whole building…but then the money ran out. Richard Arfman, Augusta Housing Authority, Director of Planning and Development:  "It was first built back in 1967 and there are 250 units in there and it’s designated for seniors.  So it was built in ‘67, some of the insides needed some work done, especially the plumbing, mechanical and electrical systems." But things are looking up again for this public housing high rise. $6.1 million was given to Augusta’s Housing Authority…just enough to finish renovations to the remaining 6 floors.

    Tennessee [WTVF News Channel 5, 3/9/09]:

    Tennessee will put nearly 12,000 young adults to work while providing free labor to businesses as part of the economic stimulus package.  Unemployment numbers across the nation. According to the numbers, teens and young adults are among the hardest hit… Help is coming soon. The Tennessee Department of Labor has received $25 million to provide summer jobs for thousands of youth across the state. "Basically, employers fill out the time sheets, the department pays the paycheck and kids get the employment. Everybody wins in this situation," says Jeff Hentchel with the Department of Labor. "Whether its sweeping, emptying trash cans, painting tables."

    Maryland [Baltimore Sun, 3/10/09]:

    Maryland is receiving more than $1 billion in federal stimulus money earmarked for education, and Gov. Martin O'Malley said yesterday he would use some of it to increase funding for community colleges and maintain the freeze on undergraduate tuition at state universities. The governor's initial budget for next year did not include an increase for community colleges, which are seeing thousands more students enroll to gain new skills to help them find jobs in the recession. But with the stimulus money, O'Malley is increasing state aid by 5 percent over the next two years.

    Michigan [Michigan Messenger, 3/9/09]:

    Jackson Police Chief Matt Heins said Monday in a phone interview that federal stimulus grants announced last week will help him save four positions in his department. The money, released by the White House, was part of the Justice Assistance Grants (JAG) program administered by the Justice Department. Heins said he had planned on eliminating four posts — one that was currently empty and three that were currently filled. But with the money from JAG, the police chief said he will be able to protect those positions from elimination.

    Minnesota [Finance and Commerce, 3/9/09]:

    A series of federal stimulus projects in Minnesota are about to graduate from concept to signed contract.  On Friday, the Minnesota Department of Transportation plans to award contracts for a series of highway projects to be paid for by the $787 billion American Recovery and Reinvestment Act of 2009, which includes $502 million for Minnesota highways and bridges and $92 million for transit.

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