Transcript Document
Overview of the Recovery Act in Tennessee
Mike Morrow, July 1, 2009
“I am proud of Tennessee's reputation for good government, and I want and expect us to be a model for other states in how we handle Recovery Act money sensibly – turning square corners, and with every nook and cranny of what we do and what we spend well-lighted and visible to the public.” – Governor Phil Bredesen
Recovery Act Purpose
The American Recovery and Reinvestment Act of 2009 (ARRA) will:
– – – Create and retain jobs Invest in the economy to speed recovery Build a foundation for long-term economic growth
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
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Provide needed services to Tennesseans
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Recovery Act Priorities
Modernize America’s infrastructure Enhance our energy independence Expand educational opportunities Increase access to medical care Provide tax relief Protect those in greatest need
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Recovery Act Funds
Dispersed by an array of methods: – – – –
Tax changes Individual assistance Formula grants Discretionary competitive grants
Distributed via federal, state and local governments as well as nonprofit and community organizations Rapid implementation required to put funds to work as quickly as possible
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Tax Changes
Making Work Pay Credit for 2009 and 2010
» » $400 for individual filers $800 for joint filers Full credit provided up to incomes of: – – $75,000 per year for individuals $150,000 per year for married couples Impact on take home pay, on average: – – $33 more per month for individuals $65 more per month for families
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Tax Changes
First-time home buyer tax credit
» » » Up to $8,000 for purchases Jan. 1 – Dec. 1, 2009 No payback requirement Equal to 10 percent of the home’s purchase price up to the maximum of $8,000
Money Back for New Vehicle Purchases
» Taxpayers can deduct state and local sales taxes on certain new vehicles bought in 2009
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Tax Changes
Earned Income Tax Credit
(Tax Years 2009 and 2010)
» Temporary increase in the EITC for taxpayers with 3 or more qualifying children
Additional Child Tax Credit
» Lowers the minimum earned income amount used to calculate the credit so more taxpayers qualify and increases the amount of the payments they may receive
American Opportunity Credit
(Tax Years 2009 and 2010)
» » More parents and students will qualify for help paying college expenses Adds required course materials to list of qualifying expenses » Allows the credit to be claimed for four post-secondary education years instead of two 8
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
Individual Assistance
Food Stamps Program
» 13% automatic monthly increase
Social Security and Supplemental Security Income (SSI)
» $250 one-time payment to more than 50 million individuals
Unemployment Insurance
» $25 per week increase in benefits
COBRA
» 65% subsidy of COBRA premiums for eligible individuals
Higher Ed Financial Assistance
» Increases Pell Grant maximum award for eligible students from $4,850 to $5,350 » Creates new work-study opportunities for low- to moderate-income students 9
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
Formula Grants
Formula grants may flow through organizations to benefit
individuals
:
Nutrition for Seniors
» Approximately 14 million meals delivered to homes and senior centers across the U.S. through programs like Meals on Wheels
Access to Health Care
» Funds for 126 new community health centers across the U.S.
Low Income Weatherization
» Assistance to low income families in weatherizing and improving the energy efficiency of their homes
Jobs and Training
» Summer jobs for youth » » Training and employment for dislocated and low-income adults Community service employment for older Americans 10
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
Formula Grants
Formula grants for
education
:
Fiscal Stabilization Funds
» Delays or prevents cuts for pre-K programs, public schools and public institutions of higher education
K-12 Education
» Title I grants for basic school expenditures and technical assistance to schools » Individuals with Disabilities – special education, pre-school and early intervention » Education Technology
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Formula Grants
Formula grants for
energy independence
:
Energy Efficiency and Conservation Block Grants
» To develop local energy plans and energy assessments » Other programs and activities that result in long-term energy savings and provide jobs
State Energy Programs
» Funding to states to construct and carry out their own renewable energy and energy efficiency programs
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Formula Grants
Formula grants for
transportation
:
Roads
» Repair and build highways, roads and bridges
Transit
» Repair and build America’s public transportation infrastructure
Aviation
» Airport construction projects and investments in the air traffic control infrastructure
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Formula Grants
Formula grants for the
environment
:
Clean Water
» Water quality protection projects for wastewater treatment, storm water runoff pollution control and watershed management
Drinking Water
» Drinking water infrastructure, including new treatment facilities and improvements to prevent contamination due to aging infrastructure
Underground Storage Tanks
» Clean up sites with petroleum leaks from underground tanks and properly close sites abandoned by their owners
Clean Diesel
» Projects to reduce diesel emissions
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Formula Grants
Formula grants for
justice assistance
:
Byrne Justice Assistance Grant Program
» To prevent, fight and prosecute crime
Crime Victims Assistance and Compensation
» Support state compensation and assistance programs
Internet Crimes Against Children
» Enhance investigative response to predators using the Internet or other technology to sexually exploit children
Violence Against Women
» Transitional housing assistance for victims
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Formula Grants
Formula grants for
homeless individuals
:
Education for the Homeless
» To meet the special needs of students who are homeless
FEMA Emergency Food and Shelter
» Provided to agencies and non-profit organizations to provide food and shelter homeless individuals
Homelessness Prevention (THDA)
» Financial assistance and services to prevent individuals and families from becoming homeless or to help those who are to be quickly re-housed and stabilized » Additional grants for these services provided directly to local governments in Tennessee’s four largest urban areas
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Competitive Grants
Funding available nationally on a competitive basis in
education
,
research
and
technology
: » $8.2 billion » $2 billion » $1.1 billion National Institutes of Health research grants Health information technology Early Head Start for low income families » $100 million Teacher quality enhancement » $57 million Autism study » $15 million Preservation of historic structures on campuses of historically black colleges and universities
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Competitive Grants
Funding available nationally on a competitive basis in
training
and
national service
: » » » $750 million $200 million $50 million » $39.2 million Training and job placement in high growth and emerging industries – renewable energy, health care Dislocated worker assistance for people in job training in areas of high unemployment or poverty YouthBuild program to help at-risk youth gain credentials as they build or rehab affordable housing Organizations that host AmeriCorps programs
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Competitive Grants
Funding available nationally on a competitive basis in
energy
and
natural resources
: » » $20 billion $4.5 billion Renewable energy study and research Smart grid investments to modernize the nation’s electricity grid and make it more efficient and reliable » $400 million Energy efficiency improvements to reduce carbon emissions » $400 million Electric vehicle infrastructure for states
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Competitive Grants
Funding available nationally on a competitive basis in
criminal justice
: » $1 billion COPS grants to support hiring of career law enforcement officers » $225 million Byrne grants to support crime prevention, improve administration of justice and provide services to crime victims » $125 million Rural law enforcement to combat drug related crime » $43 million Housing and support services for victims of domestic violence, sexual assault or stalking
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Competitive Grants
Funding available nationally on a competitive basis in
infrastructure
and
economic development
: » $7.2 billion » $2 billion » $150 million » $20 million Broadband deployment and infrastructure in rural, unserved and underserved areas Purchase and rehab vacant foreclosed properties and create affordable housing to stabilize neighborhoods To assist urban and rural communities with severe economic dislocation and job loss due to corporate restructuring Small and emerging business enterprise grants for rural distance learning networks and adult education 21
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
Accountability
Unprecedented provisions for transparency and accountability Mandatory provisions to identify and prevent fraud, waste and mismanagement Detailed spending information at and www.staterecovery.org
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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Tennessee’s Online Resource
www.TNRecovery.gov
» News and updates » Documents and reports » Frequently asked questions » Links to state and federal agency recovery Web sites
American Recovery and Reinvestment Act of 2009 Speed economic recovery
▪
Create and save jobs
▪
Provide needed services to Tennesseans
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The Road to Recovery
American Recovery and Reinvestment Act of 2009 Speed economic recovery
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Create and save jobs
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Provide needed services to Tennesseans
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The Road to Recovery
» » »
Speed economic recovery Create and save jobs Provide needed services to Tennesseans The American Recovery and Reinvestment Act of 2009