Washington, D.C. -- The U.S. House today approved President Obama’s $825 billion Economic Stimulus Plan, legislation to inject a combination of federal funds and tax credits into the U.S. economy to bring it back from the worst recession since the Great Depression. The House version of the legislation targets more than $2.3 billion to Hawaii.

“Our legislature is facing huge gaps between the demand for the basic services and the money to pay for them: state funding for schools, unemployment benefits for those whose jobs have disappeared, and funding to keep the most basic medical care available for people who have nowhere else to turn,” said Rep. Neil Abercrombie, who has been working for weeks with the Obama Administration and Congressional leaders to obtain the maximum amount for Hawaii. 

The economic stimulus and recovery measure includes funding for kindergarten through 12th grade and Pell Grants for colleges and universities, employment and job training, badly needed public construction projects that will create new jobs, and tax incentives to encourage business investment.

“Since financial capital is not flowing from the private sector, the government has no choice but to put money into the economy to get it moving again,” Abercrombie said.  “Without this stimulus package, the economic impact on Hawaii would be even more devastating.  Even more people would suffer.” 

The Senate has not yet voted on its version of the economic legislation. 

The following is a summary of the legislation, the American Recovery and Reinvestment Plan, and its impact on Hawaii:

Transportation & Infrastructure

• Mass Transit - to purchase buses and related equipment. Hawaii investment: urban areas - $39.4 million, rural areas - $2.2 million.
• Fixed Guideway Modernization - for dedicated bus lanes or HOV lanes. Hawaii investment: $2.8 million.
• Clean Water State Revolving Fund - for wastewater treatment projects. Hawaii investment: $50 million.

Economy & Jobs

• Community Services Block Grant - for Hawaii to provide a broad array of services aimed at ameliorating the causes and conditions of poverty, revitalizing low-income communities, and empowering economically disadvantaged individuals and families.
• Hawaii investment- $5 million. Only four entities can receive funding, Honolulu Community Action Program, Hawaii County Economic Opportunity, Maui Economic Opportunity, and Kauai Economic Opportunity.
• Workforce Investment Act - funding for job training and employment services for dislocated workers, youth, and adults. Most of the funding is directed to the State.
• Hawaii investment- $3.3 million for Youth Services, $1.4 million for Dislocated Workers, and $1.4 million for Adult Activities.
• Tax Credit for Hiring Certain Workers - Currently, businesses get credit for hiring from nine targeted groups. This bill adds two more groups, unemployed veterans and “disconnected” youth. Businesses hiring from these groups could claim up to 40 percent of the first $6,000 in wages.
• Making Work Pay Tax Credit- A $500 tax credit to ease the financial burden on working people. Relief to single workers earning up to $100,000 and married couples earning $200,000. (The House estimates 476,000 tax filers in Hawaii will benefit. Multiplied by $500, this totals $238 million.)
• Expanding and Extending Eligibility for Unemployment Insurance - 54,982 in Hawaii would get an extra $25 per week in unemployment benefits in 2009. And, 7,722 would be allowed to continue in the program.
• Supplemental Security Income- a means-tested program that provides cash payments to assure a minimum income for the aged, blind, or disabled that have a very limited income.
• 23,300 Supplemental Security Income (SSI) recipients in Hawaii would receive an additional one-time payment equal to their average SSI benefit, about $450 for individuals and $630 for married couples. Hawaii would get $13.3 million.

Children & Family

• Food Stamps - 105,000 people in Hawaii benefit and Hawaii overall would get a $66 million increase to fund food stamps.
• Child Care and Development Block Grant - helps low-income families, families receiving public assistance and those families transitioning from public assistance in obtaining child care. 1,480 additional keiki in Hawaii will be covered.
• Medicaid - With the unemployed turning to the state for health insurance, states may cut eligibility as they face budget shortfalls. This extra money from the federal level will help states keep their programs open to new individuals in need. Hawaii would get $452,502,707.

Education

• State Fiscal Stabilization Fund - to help states meet their education budget shortfalls. The governor must use the allocated money on restoring state financial support of elementary and secondary, and post-secondary education to FY08 levels. Governor Lingle plans to cut up to 20 percent of the DOE’s and UH’s budgets; this will help make up that shortfall. Hawaii is estimated to get $256.1 million for FY09 and FY10.
• Title I Funds- grants to pre-kindergarten through grade 12 schools with relatively high concentrations of pupils from low-income families. Hawaii will receive 38.5 million over FY09 and FY10.
• Education Technology - provides grants to states to increase access to educational technology. Hawaii will get $4.8 million.
• Individuals with Disabilities Education Act (IDEA) - which helps states to provide special education and related services to children with disabilities. Hawaii will receive $43.9 million.
• School Modernization, Renovation, Repair - for elementary and secondary school modernization, renovation and repair, such projects could include health and safety repairs, facility modifications to provide access for disabled students, technology infrastructure upgrades, and projects to improve energy efficiency in schools. Hawaii will receive $45.1 million.
• Higher Education Modernization, Renovation, Repair - for higher education modernization, renovation and repair of buildings, used primarily for instruction and housing but cannot be used for new construction. Hawaii will receive $20.9 million.
• Head Start - provides services to low-income preschool-aged children including: child development, educational, health, nutritional, social and other activities. The program is intended to prepare low-income children for entering kindergarten. Hawaii will receive $1.9 million over FY09 and FY10.
• Pell Grants - grants to low-income college students to help offset costs associated with obtaining a postsecondary education. 13,917 Hawaii higher education students will receive $52.1 million in Pell grants.

Energy

• Production tax credit (PTC) - Extension for three-years for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, waste-to-energy and marine facilities (through 2013).
• Extends and expands tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation. Increases the credit from 10 percent to 30 percent of the cost of the investment and raises the credit cap from $500 to $1,500, helping American families save money on their energy bills.
• Energy Efficiency Block Grant Program- $3.5 billion for states and local governments to fund renovation projects making public facilities more energy efficient or to fund energy efficient demonstration projects.
  Judiciary
• Byrne Justice Assistance Grant (JAG) - for law enforcement programs; prosecution and court programs; prevention and education programs; corrections and community corrections programs; drug treatment programs; planning, evaluation, and technology improvement programs; and crime victim and witness programs (other than compensation). Hawaii will receive $14.5 million in Byrne JAG money, $6.5 million to localities and $8 million to the state.

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