Stimulus Plan Offers 'Noticeable Impact' -CBO Sees 65% Spent by End of Fiscal 2010

[Pirate Smile]

Source: Washington Post

By Lori Montgomery
Washington Post Staff Writer
Tuesday, January 27, 2009; Page A07

Approximately two-thirds of the spending and tax cuts contained in an economic stimulus package crafted by House Democrats would flow into the economy by the end of fiscal 2010, producing a "noticeable impact on economic growth and employment," congressional budget analysts said yesterday.

In an eagerly awaited analysis of the stimulus package, which is set for a vote in the House tomorrow, the nonpartisan Congressional Budget Office concluded that the measure would cost the federal government about $816 billion over the next 10 years and that approximately $526 billion would be spent by the end of September 2010, or about 65 percent.

That would fall short of President Obama's goal of pushing at least 75 percent of the cash out the door over the next 19 months to create millions of jobs and ease the effects of what many economists say will be the longest, deepest and most painful recession since the Great Depression.

The total package -- including tax cuts and direct aid to the poor and unemployed -- won significantly better marks for speed than the portion of the package devoted to highways, schools and other infrastructure projects, which are among the Democrats' top priorities. The CBO report predicts that only about 40 percent of the $356 billion dedicated to those projects would be spent by the end of 2010.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/26/AR2009012602088.html?hpid=topnews

[terisan]

1. Gives ammunition to Republican opposition. nt

[w4rma]

2. Very very little ammo. Imho, the tax cuts for the non-upper classes should be permanent.

And the jobs should be also. Pay for all of them with tax hikes on the very wealthy.

[DeltaLitProf]

4. And increase the tax refunds

. . . to the very poorest, too.

[cyclezealot]

6. ?.?

Sen McConnell hit on the stimulus bill within 24 hours of Obama's inauguration. His claim, the money would not be out in time to stimulate the economy within 2 years time. This report shows McConnell did not know what he was talking about . No surprise there.

[DeltaLitProf]

3. Not good, we can do better.

More money needs to be pushed toward education in general, funding raises for faculty, increasing pell grants, funding more research grants. That money is easier to spend quickly.

Direct aid to struggling homeowners and downpayment credits for renters who want to own a home would also be fast, quick-impact spending channels.

[Shiver]

8. There is actually quite a lot of money in the bill

for many of the things you mention.

$15.6 billion to increase the Pell grant by $500.

$6 billion for higher education modernization.

$10 billion for science facilities, research, and instrumentation

$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair Program ($14 billion), and the Education Technology program ($1 billion).

Check the for more details.

Not disagreeing with you, mind, especially on needing more money for education. Just pointing out that much of what you mention is included.

[happygoluckytoyou]

5. I HAVE OFTEN SAID...if you want money infused into the economy, give it to the POOR

[liberal N proud]

7. Always been my perception as well

If you give the guy making 20K/year $1,000 dollars he will spend it on everyday things very quickly.

If you give $100,000 to the millionaire he throws it in his offshore bank account.