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The Honolulu Advertiser
Posted on: Thursday, January 29, 2009

House passes stimulus plan

By Dennis Camire
Advertiser Washington Bureau

Hawaii news photo - The Honolulu Advertiser
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WASHINGTON — In a swift victory for President Obama last night, the Democratic-controlled House approved an $819 billion stimulus package aimed at softening the economic downturn with spending and tax provisions intended to help workers, businesses and state governments.

The vote was 244-188, with Republicans unanimous in opposition despite Obama's appeals for bipartisan support. Hawai'i Reps. Neil Abercrombie and Mazie Hirono voted in favor of the bill.

The legislation includes nearly $550 billion in spending and $275 billion in tax provisions.

Abercrombie said the stimulus package, the American Recovery and Reinvestment Act, could translate into about $2.3 billion in new federal funds for the state at a time of local budget shortfalls.

"The (national) economy is about to capsize; it already capsized in Hawai'i," Abercrombie said. "We are taking care of the immediate needs of people in the state and in the country."

Hirono said reports showed more than 36,000 workers unemployed in the state last month, nearly double the figure of a year ago. "This underscores the urgency that I and other members of Congress feel as we take action to help our families, workers and businesses," Hirono said. "Economists across the spectrum agree that a recovery plan is necessary. They also recognize ... recovery over the long term will require additional actions."

The bill's funding for Hawai'i includes $129.4 million for highways and bridges, $43.4 million for transit systems and $45 million for clean-water projects.

The state also would receive $214 million for education programs, $340 million in added Medicaid funding, $14.5 million for state and local law enforcement, $7.6 million for employment and training programs and $256 million as a fiscal stabilization fund for education programs.

Hawai'i residents earning less than $75,000 would get tax credits of $500 in 2009 and 2010, a total of $667 million. The bill also increases eligibility for the earned income tax credit, with about $20.1 million expected to go to state residents and another $76 million to low-income families through the childcare credit.

Democratic leaders who helped craft the legislation acknowledge that it won't end the current recession but should help keep it from deepening.

Many Republicans call the bill too expensive and unlikely to have much impact on the economy. Among the complaints: that the bill contains hundreds of millions of dollars in items unrelated to stimulating the economy. The watchdog group Taxpayers for Common Sense cites $1 million for the 2010 census, $650 million for the nation's conversion to digital television and $600 million to buy government cars.

The next step for the economic stimulus package is for the Senate to pass its version.

The Associated Press contributed to this report.

Reach Dennis Camire at dcamire@gns.gannett.com.