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September 27, 2008
 
U.S. House-Passed Economic Stimulus Could Help Fill State Budget Holes in Safety Net
 

Washington, D.C. -- An economic stimulus bill passed by the House of Representatives on a 264-158 vote is aimed at helping Americans struggling with high prices, providing jobs while simultaneously repairing the country’s crumbling roads, bridges and schools, helping seniors and working families afford groceries and health care, and offering Americans job training to gain new skills and earn higher wages.

The measure includes funding in a variety of areas that would help residents of Hawaii:

Fixing Crumbling Schools
Nationally, the bill includes $3 billion to repair crumbling schools, provide students with first class technology, and to improve energy efficiency.  One-third of public school buildings need extensive repair or total replacement and two-thirds have environmental problems unhealthy for children.

According to the Department of  Education's annual report to the legislature for repair and maintenance, there is a $409 million backlog.  Hawaii would receive about $15.7 million, proportional to the amount of Title IA funds our schools receive.

Public Housing 
Nationally, the Economic Stimulus bill targets $1 billion to repair and construction projects, including critical safety repairs. 

Based on FY08 numbers, Hawaii should get about $5.8 million for the Hawaii Public Housing Authority’s Capital fund. According to the Hawaii Public Housing Authority, the State has a $200 million backlog of repairs and maintenance in public housing.

Job Training
Nationally, the bill includes $500 million to help Americans find and prepare for good jobs, including $400 million for dislocated worker and youth employment activities, and $100 million to provide customized help to folks receiving unemployment benefits.  Unemployment claims have increased by over 38% this year and many people exhaust their benefits before finding work.  

Based on past funding, Hawaii would receive about $654,000 for Youth Employment Activities and $145,000 for Dislocated Worker Employment and Training Program.

Food Assistance
The Economic Stimulus legislation contains $2.6 billion to address rising food costs for seniors, people with disabilities and very poor families with children.  This year, an average of 27.8 million individuals, and 12.5 million households, received food stamps.

Under the legislation, Hawaii would receive approximately $9 million in additional food stamp benefits to help 98,000 Island residents.

Water and Wastewater Improvements
Nationally, there is an additional $6.5 billion for the Clean Water State Revolving Fund.

Honolulu is in the midst of about 50 projects to repair sewer lines. The cost of that and other sewage system projects amounts to more than $560 million.  Last year, the city entered into three CWSRF loan agreements that will save Hawaii residents $130 million in interest over the life of the loans.  This investment is critical to saving Hawaii residents’ money and ensuring safe wastewater systems.

Drinking Water
Nationally, there is $1 billion for the Drinking Water State Revolving Fund to repair, rehabilitate and expand water systems in the legislation, providing a source of much-needed loans for water utilities. 

Hawaii would get at least $10 million for repairing and replacing our aging drinking water infrastructure, additional treatment capacity to comply with new standards and security-related improvements.

The legislation has gone to the Senate for its consideration, however, there is yet no indication about when or whether the Senate might act on the bill before adjournment.