Don’t look for the Valley to be stimulated

By David Skolnick

Once again, it appears the Mahoning Valley is going to get left behind.

Appears is the key because no one can figure out how much money communities and counties are going to get under the $789 billion federal economic stimulus package. The U.S. House and Senate are expected to pass the legislation today.

The bill includes help for those impacted by the economic downturn through additional unemployment benefits, food stamps and health coverage as well as providing billions for states that face the prospect of making deep cuts to their budgets, according to the Associated Press.

Ohio will receive $7.9 billion from the package. It will use $3.1 billion for Medicaid programs. Those programs make up about one-third of the state’s budget cost allowing the state to free up some money.

But the governor’s proposal includes using $3.4 billion of the federal stimulus fund to balance the state’s two-year budget.

That’s not going to leave a lot of money for communities in desperate need of assistance.

Even if it could help, no one can provide a detailed explanation at this point as to what projects and programs are eligible to receive funding.

U.S. Sen. Sherrod Brown, a Democrat from Avon, said the package would create or save 133,000 jobs in Ohio.

President Barack Obama told reporters that the bill would provide Ohio with money to avoid deep budget cuts and would create jobs in the state, according to The Columbus Dispatch.

When asked for details, he was vague.

Obama said the bill would help those in Ohio by providing more Medicaid funding, increasing unemployment benefits and reducing health care costs for those without jobs, the newspaper reported.

The Mahoning Valley communities and counties have more than $1 billion on wish lists for federal stimulus money. Of course we won’t get anywhere close to that amount.

This package, like all the others approved by the federal and state governments, would probably give the lion’s share of funding to Cleveland, Columbus and Cincinnati — after the state takes its huge cut.

Also, there are restrictions on what projects will receive funding.

About $1.4 billion will go to repair and build roads, bridges, and water and sewer systems.

Drive on roads and bridges in the area and it’s hard to disagree that many of them are a mess in desperate need of repair.

The area’s water and sewer systems certainly need repair and new ones need to be built.

These would create infrastructure jobs. But when the last bridge and water system is built or improved, they’re not going to create many new jobs.

It’s a decision that has some Valley leaders very concerned.

Youngstown Mayor Jay Williams articulated this point by saying: “All we’re doing with the money is plugging a two-year budget hole in the state and perhaps the city’s deficit” of about $3 million this year. “Then after that we’re not going to be better off.”

One of Obama’s main campaign platforms was to help the middle class.

This bill would help some in the middle class — most notably those without jobs — but once again, they’re largely forgotten.

During the campaign, Obama often spoke of stimulating the economy by providing $500 tax credits to middle and lower classes workers.

That meant $1,000 to couples. It’s not a lot of money, but it’s needed by many of us facing very difficult financial situations.

Obama couldn’t even deliver on that. Those same couples would get $800 credits.

That means about $13 a week extra in your paycheck by late spring, dropping to $8 a week next year, according to the Associated Press.

That’s not going to do much to stimulate the economy, particularly as businesses continue to struggle to survive.

Those businesses are laying off workers, reducing salaries for others and having employees contribute larger amounts of their health care premiums.

Another 13 bucks a week won’t come close to off-setting that. To believe it would stimulate the economy is ridiculous.

Brown acknowledges this “isn’t a perfect bill, but it is a significant jump-start that our economy needs.”

We’ll see about that.