The newfunds, proposed in smaller, more specific bills than the $787 billion AmericanRecovery and Reinvestment Act (ARRA), could help to shore up Medicaid spending,extend unemployment benefits, keep teachers in classrooms and continuesubsidizing COBRA health insurance policies for laid-off workers.
That’s whylocal and national leaders are calling for another round of domestic spendingto kick in when the original recovery funds taper off.
One such bill is the Local Jobs for America Act,co-sponsored by Congresswoman Gwen Moore (D-Milwaukee), which would add anestimated 1,630 jobs in the city of Milwaukeeand another 530 jobs in the rest of the county. The bulk of the money would goto states and local communities to create or retain jobs; the rest would bespent on teachers, law enforcement and firefighters, according to theMilwaukee-based Community Advocates Public Policy Institute.
Whether anyjob-creation bill will be passed is up in the air, and some measures have beenstripped from larger bills pending in Congress. But local leaders are callingon Washingtonto act before it’s too late.
“We do needanother [round of domestic spending] or we’re going to have those massive cutsin the number of public employees and teachers that we avoided last year duringthe next year,” said Robert Kraig, executive director of Citizen Action ofWisconsin, which is part of the Wisconsin Alliance for Strong Communities, agroup that is urging Congress to increase spending on jobs.
‘We’reComing Back,’ Rep. MooreSays
Wisconsin has used its portion of ARRA funds to createor retain about 59,000 jobs already and an estimated 70,000 total when itsfunds have been distributed fully. The largest pool of money has been spent oneducation$1.2 billion, according to the state’s ARRA websitewhile hundreds ofmillions of dollars have been spent on infrastructure, health care, energy,workforce development and the environment.
EvenMilwaukee County Executive Scott Walkerwho’d once said he wouldn’t submit alist of potential projects to be funded by the stimulusrecently has boasted oftaking advantage of ARRA funding with the low-interest Build America Bonds. Walker’s campaign claimsthe bonds saved county taxpayers $3 million. Walker, a Republican candidate forgovernor, doesn’t promote the fact that the bonds were part of the stimuluspackage, however.
Thus far, Milwaukee County agencies, businesses andresidents have received $413 million in stimulus funds.
Thatinvestment is largely unseen and unnoticed, since it helped to keep people onthe job and conduct business as usual. But the local coalition argues that thefunds helped to prevent another Great Depression.
As Rep.Moore put it at a press conference last week, “It’s very, very difficult tofeel and understand that we’re coming back from the brink unless it touches youpersonally.”
She said atangible, high-profile sign of the impact of ARRA funds on the local economy isTalgo’s decision to locate in Milwaukeeand assemble and maintain trains for high-speed rail. The project will create125 permanent jobs in Milwaukee and indirectlycreate up to 450 additional jobs throughout the Midwest.The high-speed rail line, eventually to run from Chicagoto Minneapolis,is funded by the stimulus package. More than $800 million in federal funds willbe spent on Wisconsin’srail infrastructure.
“We’recoming back,” Mooresaid.
TheFragile Recovery
Therecovery, however, is fragile and the high unemployment ratecombined with thecutoff in stimulus fundingcould lead to a double-dip recession if more federalfunds aren’t provided to cities and states.
“Some of theeffects of the stimulus are ongoing, but they’re beginning to dissipate,” saidCitizen Action’s Kraig. “They’re certainly going to dissipate when the aidgiven to states and cities to prevent very deep cuts in public services ends.Those cuts are going to kick in very soon unless there’s another majorinvestment.”
Visiblesigns of vulnerability are the proposed job cuts at Milwaukee Public Schools inthe coming school year. Legislation to fund teacher jobs around the country hasstalled in Congress. An estimated $400 million of the proposed $23 billionwould have flowed into Wisconsinto keep teachers in the classroom. Without the funds, an estimated 680positions will be cut in the next school year.
Kraig saidthat the debate over domestic spending is a test of whether the federalgovernment can act effectively in an economic emergency.
“This iswhat a democratic government was created to do,” Kraig said. “It can do thingsthe market can’t do to protect people’s livelihood and prosperity. Largecorporations that caused the financial collapse are not going to resolve thisproblemthey have no interest in solving this problem.”
