by Donald Herman

Created on: January 25, 2009   Last Updated: March 31, 2012

Much of the impetus for the Democratic victories in November 08 was the promise of returning to the prosperity of the Clinton years. There are inherently, serious questions, not only of when it can be achieved but, what procedure to follow to regain a viable economy. The new administration is proposing another round of economic stimulus which includes massive spending and taxpayer relief. Whatever the final package, that hits the President's desk, it requires immediate attention from all of us.

Essentially there are two distinct packages, one includes the remaining $350 billion from the TARP bailout and the other, a new spending bill of $850 Billion. The initial TARP distribution has been released for the new administration and legislation nears completion on the second. The average American will still see little direct impact except in the area of tax relief. The remainder will be directed toward future savings through present capital outlay via construction projects.

A major portion will be directed toward energy programs although hard figures are not yet released. Bricks and mortar will comprise another major area including school upgrades and making energy efficient government buildings. Educational grants in the sciences and health subsidies will round out the remaining.

More specifically the projected benefits are:

The package will add 3,000 miles of electrical lines to reduce transmission bottlenecks. Current bottleneck costs are estimated to cost the economy, as much as $180 Billion.

Make government buildings energy efficient. Projected savings $2 Billion per year.

Double renewable energy resources which could power six (6) million homes. This equals 4% of all commercial and residential customers or $9 billion, currently drawn from carbon based sources.

$300 Billion is slated for business and individual tax cuts.

Triple undergraduate and graduate fellowships in Science. (A Florida study found as many as 10% of new science teachers weren't fully certified in their subject). The house version also includes $13.3 Billion in Research & Development (R&D) funds for federal health and scientific agencies.

Approximately three percent is highway construction ($30 billion over two years) although some of that is already earmarked for national parks and Indian reservations.

Funding to University R&Ds is projected at $2.3Billion compared to zero funding in 2008. This will have a major impact on communities housing select universities.

A $2,500 college tax credit under the federal Pell Grant system.

$18.2 Billion for road and bridge and $6.5 Billion for mass transit. Estimates are that each $1 billion will create 47,500 jobs and $5.7 billion in ancillary economic stimulus.

A surprisingly small sum is currently allocated for rail improvements ($2 Billion) and Chicago is in line with projects that may take a major portion.

Some others include: aviation ($1 Billion); Coast Guard ($420 Million) and brown field cleanup ($275 Million)

Final aspects of the bill's status are not readily available and will likely not be until mid-February, when it is projected for final passage. Lobbying is already intense from Governors to small town mayors, each with their own projects. It behooves us all to keep a close watch and use the Obama websites to push our own agendas. It is, after all is said and done, our recovery.

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