Rep. Schmidt on Porkulus

E-Newsletter:

Last week I wrote about the $819 billion stimulus package that the House of Representatives approved, despite the fact that every Republican and eleven Democrats voted against it. This week, despite a “bipartisan” compromise to trim around $100 billion from the overall price tag, the bill that the Senate passed this week is still estimated to cost more than the House-passed bill.

Over the past month, many have tried to portray the stimulus debate as a fight between those who want to act versus those that seem happy with the status quo. Nothing could be further from the truth. One would be hard-pressed to find any member of Congress opposed to federal action to provide a temporary economic jolt. It would also be difficult to find any member of Congress opposed to including infrastructure spending in any final package. The debate is about what is the best combination of tax cuts and spending needed to jump start economic activity.

My problem with the current stimulus package is that much of the spending is not designed to “jolt” the economy or create jobs. In fact, according to the Congressional Budget Office, three-fifths of discretionary spending in the House Bill will not occur until after 2010. Our economy needs a boost now, not in 2011 or 2012. Some of the spending will never stimulate the economy. While I support increasing the maximum amount of Pell Grants to help pay for college, is this really going to create jobs in the short term? After the President’s Day recess, Congress will consider a $400 billion spending package to pay for government through the rest of this fiscal year. Shouldn’t Pell Grants have to compete against other priorities for increased funding? The current economic crisis should not be an excuse to spend taxpayer dollars on programs or projects that could not or have not been enacted in the normal course of business.

In much the same way, infrastructure spending should not be used to fulfill a wish list of state and local leaders. Indeed, wisely spent infrastructure funding can create private-sector jobs, save money over the long-term, and actually increase future economic activity. The Brent Spence Bridge and the Eastern Corridor are excellent local examples of the types of infrastructure spending about which I am speaking. Unfortunately, these projects, and so many like them across the country, are not “shovel ready.” So, it is time for serious people to come together and determine what projects in Ohio are worthy of federal funding as a result of this so-called stimulus package.

I recently had the opportunity to read the United States Conference of Mayors report on “Ready To Go Jobs and Infrastructure Projects. According to the report, “779 cities . . [report] a total of 18, 750 local infrastructure projects are ‘ready to go.’ These projects represent an infrastructure investment of” more than $149 billion “that would be capable of producing an estimated 1,604, 371 jobs in 2009 and 2010.” It is essentially a wish list for mayors. Many of the projects will create jobs in the short run. Unfortunately, many of the projects on the list will create too few jobs and will neither save money in the long run nor fuel future economic growth.

Many of you might have read that Las Vegas, Nevada wants $2 million for more neon signs. Austin, Texas would like $886,000 for a Frisbee golf course and Boynton Beach, Florida would like $4.5 million to construct an “eco park.” Closer to home, the City of Cincinnati would like $132 million for streetcars, $50,000 to build a basketball court, $1.2 million to renovate a swimming pool, $40,000 to build tennis courts, and $50,000 for a ‘Climate Plan Summit.” This is not the type of “stimulus” that our country needs.

As the stimulus bill moves forward, states and local communities need to make plans for how to get the best bang for the buck out of the federal largesse coming their way. If the Majority insists we must spend this money, let’s make sure we do it wisely, with an eye to turning a windfall into long-term growth.

I would love to hear your thoughts. Please send them to me at Congresswoman Jean Schmidt, 418 Cannon HOB, Washington, DC 20515.