Stimulus Money was Misspent

Associated Press

When President Barack Obama signed the American Recovery and Reinvestment Act, he promised that the $787 billion stimulus package would create or save 3.5 million jobs over two years, mostly in the private sector.

Without the spending called for in the law, the administration predicted, the unemployment rate would reach 8.6 percent. Today, the U.S. unemployment rate is 9.6 percent. What happened?

We spent a great of money. But if we wanted to spend it to benefit the states with the highest unemployment rates, we failed. Out of the total $787 billion, the federal government so far has allocated one-third, or $275 billion, in grants and contracts to shovel-ready projects. So far $190 billion of that amount has been spent, according to government figures.

With a few exceptions, the data show little correlation between the level of unemployment and stimulus spending. In fact, the opposite is true. The federal government has given far fewer stimulus dollars to states with high unemployment than it has to states with low unemployment.

Does it make sense that the state with the highest unemployment rate, Nevada (14.3 percent), is getting roughly half the per-capita amount ($561.55) of the state with the lowest, North Dakota ($1,059.95)? Michigan is getting $648.91 per capita.

What's going on here? For one thing, these are raw numbers that reflect only the amount of stimulus money spent.

What they don't do is tell us anything about the reasons it was spent.

After running a series of analyses, I found no correlation between unemployment levels and stimulus spending.

So if state unemployment levels weren't the basis on which the federal government allocated these funds, what was? To me, it looks like it was just one: speed.

Back in February 2009, for all the talk about creating jobs, the administration wasn't focused on distributing money to high-unemployment states, which, in theory, were the ones hurting the most. It was just trying to spend a massive amount of money as quickly as possible.

To achieve that, the stimulus bill distributed money among the states through existing channels -- such as the federal Departments of Education and Transportation -- whose main functions aren't to address unemployment levels.

The Obama administration was wildly successful if its objective was to spend a lot of money in a short amount of time.

Whether that money has done or will do anything for the people that need it most has proven far more elusive. As the saying goes: You can have it fast, you can have it good, or you can have it cheap -- pick two.

Sadly, we only got one.

Michigan to Receive $5M for Smart Grid Job Training

The Detroit Free Press

WASHINGTON – Michigan will receive just more than $5 million for two programs to train workers for jobs in electric utilities, the Obama administration said earlier this month.

The administration will provide $4.4 million to the state’s Electric Power Workforce Training Strategy, which aims to train 588 workers for electric sector jobs. Northern Michigan University will get $670,000 for another program that trains about 40 entry-level electrical technicians a year.

The money comes from a $4-billion pot from the economic stimulus law last year meant to spur the building of “smart grids” and other improvements in the electric grid.

“Through these training programs, people who are out of work can get training to enter a new field,” said U.S. Energy Secretary Steven Chu.

The grants are part of $100 million nationwide for 54 projects that the administration estimates will train about 30,000 workers.

U.S. Sen. Debbie Stabenow, D-Mich., said the grants were “about real people training for new jobs.”

Wind-Energy Industry Lost Factory Jobs Despite Stimulus

USA Today

Federal stimulus funds rescued the U.S. wind-power industry from what could have been a disastrous 2009, but it still lost highly sought-after manufacturing jobs, according to a trade association report out Tuesday.

Nationwide, the wind-power industry employs about 85,000 people — the same number as a year ago after it gained 13,000 manufacturing jobs in 2008, says Denise Bode, CEO of the American Wind Energy Association.

Early last year, the association had expected wind-power development to drop 50% in year-end levels compared with 2008, given the dearth of financing for wind-farm projects.

But 2009 federal stimulus dollars, reaching $2.25 billion for dozens of wind projects and wind turbine-component manufacturers, buffeted the recession's impact, Bode says.

"The stimulus was a real spur to development," she says. "We saved half an industry."

Nationwide, the wind industry last year added a record 9,900 megawatts of new generation capacity, enough to power the equivalent of 2.4 million homes, the association says.

Only 38 wind turbine-component manufacturing plants were built or expanded last year, down from 55 in 2008. In addition, several wind-turbine companies announced layoffs last year, including at plants in Minnesota, Pennsylvania and Nebraska.

Bode estimates that the wind industry lost between 1,500 and 2,000 manufacturing jobs last year but gained an equal number in wind-farm construction and maintenance.

Without the stimulus funds, "things would've ground to a halt," says Gary Hardke, president of the San Diego-based Cannon Power Group. It has installed 400 megawatts of wind power in Washington state in the past 18 months and secured $19 million in stimulus funds. Without the funds, the project "would've stalled out," Hardke says.

Manufacturers also suffered because they had big inventory levels last year, Bode says. Over the longer term, wind-turbine makers have expressed reluctance to build plants in the USA because it lacks a national standard to increase the use of renewable energy sources, Bode says. Legislation in Congress has proposed the United States get 15% to 20% of its energy from renewable sources by 2020, along with increased efficiencies. On the local level, 29 states have their own requirements to get more of their energy from renewable sources, and six states have set goals.

The nation's wind industry provides about 2% of the USA's electricity. That could rise to 20% in the eastern USA by 2024 if enough money is invested in transmission lines and the power grid, said a study recently released by the Department of Energy.

Senate Passes Bill To Benefit Michigan Companies, Jobless

Detroit News

Washington -- The Senate passed the $636 billion Department of Defense appropriations bill this morning that includes millions of dollars for military-related projects by Michigan companies, plus an extension of unemployment benefits and COBRA health insurance subsidies for laid-off workers.

The Senate passed the bill, passed 88-10, with Sens. Carl Levin, D-Detroit, and Debbie Stabenow, D-Lansing, voting for it. The bill goes to President Barack Obama, who is expected to sign it.

"It was a little bit of struggle to get here, but we got here," said Sen. Majority Leader Harry Reid, referring to the massive snowfall that began Friday night and is blanketing Washington.

The Senate squeezed in the vote to fund the Fiscal Year 2010 military in its ongoing debate on overhauling the nation's health care system. Senate Democrats hope to get to a final vote before the Christmas holiday next Friday.

The DoD bill also includes $128 billion to fund the wars in Iraq and Afghanistan.

The precise dollar amount that Michigan companies will receive in the Defense bill isn't known because companies must compete for the contracts. The amount will easily top $100 million, however, because much of the funding goes to projects already under way in Michigan.

The bill also sets aside $320 million for the Warren-based Army Tank Automotive Research, Development and Engineering Center and its National Automotive Center.

That money will support such research into protecting Army vehicles against rocket propelled grenades and other explosives, strengthening combat and tactical vehicle armor, and developing fuel cell and hybrid electric vehicles.

The legislation also funds programs of the Army's TACOM Life Cycle Management Command in Warren, including the Abrams main battle tank, the Bradley Fighting Vehicle and the Stryker Armored Vehicle.

Michigan lawmakers requested funds for projects in which Michigan companies will be leading contenders for the contracts, including:

• $1.2 million to develop rooftop photovoltaic systems for military housing by United Solar Ovonic in Auburn Hills.

• $219 million to continue work on the lightweight 155mm howitzer, which Howmet Castings of Whitehall has worked on.

• $6.4 million for a program that Peckham Industries of Lansing has been part of to create multi-climate clothing for soldiers.

• $2 million for laser scanning technology that NVision of Wixom is developing.

• $1.2 million to continue work by Cybernet Systems Corp. of Ann Arbor on a shipboard wireless device for Navy ships.

• $1.6 million to continue development by Dexter Research Center in Dexter on a security sensor to protect military intallations from chemical and biological attacks.

"This bill ensures that Michigan's factories and research centers will continue their cutting-edge work that has helped make our military the strongest the world has ever seen," said Levin, the chairman of the Senate Armed Services Committee.

Stabenow said the funds will help create jobs in the state.

"I am very pleased that this legislation not only provides critical funding to support our troops, including a 3.4 percent increase in military pay, but also invests in my priorities for alternative energy research and more energy-efficient combat vehicle technology," Stabenow said.

The bill also extends a federal subsidy that helps laid-off workers pay for health care from nine months to 15 months.

Under the program, the federal government picks up 65 percent of the cost of an individual's health insurance with their former employer.

The subsidy, initially offered for nine months, began in March, meaning some laid-off workers got kicked out of the program Dec. 1. They'll be allowed to continue for six months, and be reimbursed for the subsidy they didn't receive for December, once the bill becomes law.

Eligibility to tap into the COBRA program for Michigan health insurance was set to expire Dec. 31, but the DoD bill extends it through Feb. 28. The bill also extended the expiration date of expanded unemployment benefits from Dec. 31 to Feb. 28.

Without the extension of the jobless benefits program, 70,000 Michiganians will cash their last unemployment checks by mid-February.

Last month, Congress passed an extra six weeks of unemployment benefits for hard-hit states such as Michigan. But because there were too few weeks left on the calendar before the cut-off date of Dec. 31, virtually no one in Michigan would have qualified for the six extra weeks.

Michigan provides a maximum of $362 per week in unemployment benefits to previously full-time workers, plus an additional $25 per week provided by the Recovery and Reinvestment Act, for a total of $387 per week. The weekly $25 bonus was also in the DoD bill.

Levin said the steps will "soften the blow of unemployment."

About 470,000 Michiganians are receiving unemployment benefits.

Senate Sending $197M To Michigan

Detroit News

Michigan will receive nearly $197 million for 150 projects, plus a boost for Detroit's light rail project and embattled auto dealers, under a massive spending bill the Senate passed Sunday.

The $1.1 trillion omnibus spending bill, passed 57 to 35, goes to President Barack Obama, who is expected to sign it.

The legislation includes about $4 billion for 5,000 pet projects requested by members Congress.

Michigan's earmarks include money to help former prisoners stay away from crime, upgrade police radio and surveillance equipment, buy greener public buses, keep open battered women's shelters, improve airports, build bike paths and beautify streets, and install electronic record-keeping at health clinics.

"This funding will provide critical investments to create jobs across our state," said Sen. Debbie Stabenow, D-Lansing, who, along with Sen. Carl Levin, D-Detroit, voted for the legislation.

"These dollars will be used to expand our transportation sector to revitalize our communities ... support education programs and workforce training, as well as much-needed resources fro Michigan's military installations," Stabenow added.

The legislation also requires binding arbitration for the more than 1,350 dealers that General Motors Co. plans to close and would set up an appeals process for 789 Chrysler Group LLC dealers that were closed in June.

The legislation also enables Detroit to get over a key financial hurdle for the Woodward Avenue Light Rail project by requiring the Federal Transit Administration to count $120 million in private money for the first phase of the system to count in the local match needed to eventually qualify for federal funds.

Levin said that the match allowance is "bringing us one step closer to realizing the dream of light rail in Detroit," which would reach from Hart Plaza to Eight Mile Road.

Michigan funding includes:

• $38 million for military construction, including $8.9 million to replace troop quarter at the Alpena Combat Readiness Center, $7.1 million for an A-10 flight simulator and operations workspace for the 127th Wing A-10 Squadron at Selfridge Air National Guard Base, and $14 million for facilities for the 110th Fighter Wing at the Battle Creek Air National Guard Base.

• $28.2 million for the Great Lakes Fishery Commission to restock fish and control the sea lamprey.

• $500,000 to rehabilitate the Detroit City Airport's taxiway A and east end runway, and $730,500 for the Oakland County International Airport Terminal Building.

• $750,000 to renovate the roof of the historic Detroit Institute of Arts.

• $3.5 million for the Ann Arbor-to-Detroit Regional Rail project.

• $1 million for Detroit's Eastside Firearm Reduction Initiative, which would increase police visibility in the eastern and northeastern areas to reduce shootings, armed robberies and carjackings.

• $350,000 to install technology recognizing license plates in some Detroit Police cruisers to make it easier to find stolen or wanted vehicles.

• $1 million for the Thunder Bay National Marine Sanctuary and Underwater Preserve, which protects scores of historic shipwrecks.

• $1.3 million for construction of a Troy-Birmingham Multi-modal Transit Center, which would be a hub for regional public transportation, combining Amtrak rail, SMART bus services, and taxi connections.

"A new regional transit center will spur business growth, create jobs and allow residents and visitors to travel more easily in and out of Oakland County," said Rep. Gary Peters, D-Bloomfield Township, who pushed for the funds.

"Local residents have been pushing for more public transportation for years, and this transportation hub will be a cornerstone of a larger regional public transit plan," said Peters, who is meeting with local authorities Monday to discuss the next steps for the transit center.

The bill contains $447 billion for transportation, justice, health, education, veterans and several federal agencies that have been operating on a stop-gap measure set to expire Friday.

The bill also includes $650 billion in mandatory payments for federal benefit programs such as Medicare and Medicaid, and an average 2 percent pay raise for federal workers.

Republican opponents said the bill spends too much at a time of enormous federal deficits.

"Obviously we need to run the government, but do you suppose the government could be a little bit like families and be just a little bit prudent in how much it spends?" said Sen. Jon Kyl, R-Ariz.

But the he National Automobile Dealers Association was pleased by the dealer provision, which gives terminated dealers and those expected to be closed 45 days to file an appeal, after which a neutral arbitrator will weigh the economic interests of the manufacturer, dealer, and taxpayers, who provided $62 billion in funds to help GM and Chrysler survive.

"The amendment will provide a fair process to address dealer concerns about the recent closures of General Motors and Chrysler dealerships, and will give affected dealers transparency and the right to arbitrate to regain their dealerships," the group said in a statement.

Mark Reuss, GM's new North America president, has called the provision "a good thing" and "an opportunity for all of us to make the right decisions and move on." It's uncertain whether Chrysler will fight the provision, and spokeswoman Linda Becker did not respond to a request for comment.

Rep. John Conyers, D-Detroit, the chairman of the House Judiciary Committee, said the arbitration process will serve the interests of the automakers and dealers.

"Just as manufacturers need a strong and robust dealer network, dealers are critical parts of the distribution chain and important actors in their local communities, offering hundreds of thousands of jobs," Conyers said.

Federal Stimulus Heating Up Michigan

Ken Brown installs insulation in the attic of a Hazel Park home last month. After a delay, federal funds are now available to help people with low incomes weatherize their homes.

Detroit Free Press

Just in time for winter, that big batch of federal money -- $243 million for Michigan over three years -- to help people with lower incomes cut heating and cooling bills is finally starting to flow.

Those funds to improve home insulation also were supposed to have begun putting hundreds of people in the weatherization industry to work by now. But Congress' initial plan to have contracts begin in April was delayed while federally mandated wage rates were set for contractors.

That took months -- time during which Michigan kept struggling with double-digit unemployment.

At Ampro Insulation and Weatherization in Hamtramck, owner Darnell Jackson laid off six workers while he waited. Now, with the government money moving and contracts being signed with agencies that will pay contractors doing the work, he's hired the six back, added four and expects to hire more.

"We've been running a very lean machine," said Robert Dein at Applied Building Sciences, another weatherization contractor in Royal Oak now looking to add a few workers. "This thing was supposed to ramp up a long time ago."

In all, the state expects to insulate, seal windows and otherwise weatherize 30,000 homes for lower-income residents over three years -- on top of the 6,000 to 8,000 it expects to do under an existing program -- and put up to 1,300 people to work.

Weatherization initiative slowly gets off ground

You'd be hard-pressed to find a program more representative of the Obama administration's stimulus act than the $5 billion it's pumping into home energy conservation improvements.

It promises to save energy, help lower-income Americans on their bills and put tens of thousands of contractors and their employees to work.

In Michigan and elsewhere, however, the program has had a slow start: Of the $121 million already provided the state -- about half of the $243 million committed to the state over three years -- only about $2 million had been spent by the end of August. The program, which hoped to have work in progress last April, ground to a halt while wage rates for contractors were sorted out.

A half-dozen of the 32 community action agencies coordinating the weatherization program for the state Department of Human Services have contractors working; at one of them, the Oakland Livingston Human Services Agency, which serves those two counties, nearly three dozen jobs are under way or completed, the leading edge of at least 1,681 weatherization projects to be done in Oakland and Livingston counties with $12 million in stimulus funding by March 2012.

The program has had a slower start elsewhere in suburban Detroit and Michigan, where agencies serving lower-income residents have been weeding through contractor bids and making decisions on which ones to use, with an eye toward work beginning soon on some of the thousands of applications for home improvements.

"We're trying to work as quickly as we can," said Frank Taylor, executive director of the Macomb County Community Services Agency. Macomb officials have cut a list of 31 contractors seeking work to 17 it plans to use on at least 1,166 projects over three years. Work is expected to begin Nov. 16.

"We've got contractors who need the work," Taylor said.

In fact, weatherization and insulation contractors across the region consider the work a lifeline, with the economy soured and unemployment at 15.3% -- the nation's highest -- in September. At Ampro Insulation and Weatherization in Hamtramck, owner Darnell Jackson says 80% of his private sector work has dried up.

He's not alone: Robert Dein, at Applied Building Sciences in Royal Oak, says he has relied on government work lately. Now he has contracts with agencies in Oakland, Livingston and Macomb counties for weatherization work and wants to hire up to four more people.

Of the 250 or so résumés he has, he said, only a few people seem qualified -- and with the higher wages the federal government is requiring, he said can't afford to pay them to learn on the job.

Requirements for contractors

Many strings are attached to the weatherization program, which piggybacks on a program funded through the U.S. Department of Energy to pay for free insulation, window sealing and other energy-saving improvements to homeowners and renters with incomes up to twice the federal poverty level.

In the past, the federal funding has led to improvements for up to an average of $2,500 on each of about 5,000 homes in Michigan annually. Under the stimulus -- known as the American Recovery and Reinvestment Act -- work can average up to $6,500 per home.

After paying for training, state personnel and other items, there's money in Michigan -- about $199 million -- to cover work on 30,000 homes over three years, on top of the 6,000-8,000 expected to be weatherized during that time under the existing program.

Training and payroll requirements and other red tape for contractors make it unlikely that new businesses will qualify.

The program operates simply: Someone who wants work done contacts the local community action agency. Once the applicant's income eligibility is determined, the agency -- if funding is available -- inspects the home to decide what needs to be done. Most jobs are for spraying insulation and sealing to cut air leakage. Finally, a contractor completes the work.

Melissa Sargent, a 36-year-old Royal Oak mother and education coordinator for a Detroit-area nonprofit agency, had a hole in her roof that dripped water into a bucket in her living room when it rained.

This summer, the Oakland Livingston HSA authorized work on her home under the existing program, with funding for roof repairs coming from yet another fund; the family even got a new furnace. New insulation went in the walls, the attic and the crawl space.

She's expecting her heating bills this winter to be cut in half. Last year, they sometimes topped $250 a month.

"It's fabulous," she said of the work that was done. "Our minds are so much at ease."

Officials at all the local community action agencies and at the state want to make sure people know that even if they apply and are eligible for work, it could take months -- or even more than a year -- for the work to be completed.

The contractors hope the action agencies have inspectors ready to authorize work, because they're raring to go.

"There is some hope that in the first part of next year, you'll see this thing take off," said Dein.

Obama Signs Extended Unemployment Benefits Into Law

Detroit Free Press

As expected, President Barack Obama this morning signed into law a bill extending benefits for out-of-work Americans who have exhausted their unemployment checks or will do so by year’s end.

In Michigan, more than 100,000 people may eventually be helped by the extension, which provides up to 14 weeks of additional benefits for anyone whose unemployment has already run out or will be exhausted by Dec. 31, 2009.

the national unemployment rate had topped 10% in October, the highest since March 1983.

It doesn’t help people who will run out of benefits in 2010 – though Congress is expected to come back and pass legislation this year that extends that eligibility window into next year.

Obama’s signature makes today the effective date of the bill. The additional benefits are not retroactive, meaning that once recipients who have run out of benefits begin getting checks in mid-December, they will reach back to only Nov. 6.

The House voted Thursday to pass the legislation after waiting weeks for the Senate to move on the bill. Michigan had the highest jobless rate in the nation in September at 15.3%. Today, it was reported that the national unemployment rate had topped 10% in October, the highest since March 1983.

The state Unemployment Insurance Agency projects that as many as 80,000 people will be eligible for the new extension by the time checks begin going out in mid-December. It will take that long for the federal Labor Department and state agencies to identify who is eligible and start sending out extension checks.

The legislation also authorizes an additional six weeks of benefits on top of the 14 weeks for out-of-work residents in the hardest-hit states, including Michigan, but it remains unclear how many people will actually qualify for those extra six weeks under the legislation signed into law by Obama today.

The reason is that a person has to exhaust the new benefit of up to 14 weeks to qualify for those six weeks – even though there are only eight weeks left in the year.

That means it may be available at first to only people who because of their work histories qualify for no more than eight weeks under the extension. Otherwise, it will take another act of Congress to lift the eligibility window past the end of the year to make those extra six weeks widely available.

U.S. Senate Approves Unemployment, Homebuyer's Credit Extension

from Detroit Free Press

The U.S. Senate voted unanimously tonight to extend unemployment benefits by as much as 14 weeks to out-of-work Americans, including about 100,000 Michiganders who have exhausted their jobless benefits or would do so by year’s end.

The legislation -- which had been hanging fire in the Senate for weeks -- still required a supermajority vote to close off debate as Republicans held it up, despite the unanimous vote in the end. It now returns to the House, where quick passage could come as early as Thursday.

It would then go to President Barack Obama, who is expected to sign it. It could be weeks, however, before states can start getting the extension checks out to people who have already exhausted their unemployment benefits.

Nowhere is the need being felt as greatly as in Michigan, which at 15.3% had the highest unemployment rate in the country in September.

Said Sen. Debbie Stabenow, Michigan Democrat, “Families throughout the state and across the country are struggling to put food on the table as many cope with finding new jobs. … This extension of unemployment insurance not only provides support when it is needed most, it is one of the fastest, most effective ways to stimulate our economy.”

Michigan’s Unemployment Insurance Agency projected earlier this year that 99,000 recipients would exhaust their benefits -- including up to 26 weeks of regular benefits, 33 weeks of Congress’ first emergency extension and 20 weeks of the state’s extended benefits program -- between May and the end of the year.

Sen. Carl Levin, a Michigan Democrat, said that during the debate, about 7,000 unemployed Americans lost their benefits each day and that by mid-October, 44,000 Michiganders had exhausted their benefits. UIA estimated another 18,000 would lose benefits between mid-October and mid-November.

“I wish it had come sooner,” said Levin.

Last year, Congress authorized up to 33 additional weeks of emergency unemployment compensation for people in hard-hit states who exhausted their regular benefits -- which are typically based on work history and wages and often last up to 26 weeks. Originally set to expire in March 2009, the federal stimulus bill extended the window for people to qualify for the additional benefits to the end of December.

That December 2009 deadline is still in place. But with the national unemployment rate still rising (from 7.6% in January to 9.8% in September) and the initial emergency unemployment extension having already run out for many people, legislators were intent on providing an additional round of help.

The House -- which is expected to accept the Senate version -- had earlier approved legislation some weeks ago authorizing up to 13 weeks of additional benefits for people living in states with unemployment rates of 8.5% or higher.

The Senate legislation went further, authorizing up to 14 additional weeks for out-of-work residents in every state in the nation, provided they’ve already exhausted the earlier authorized benefits or will do so by the end of the year.

Under the bill as crafted by Senate Finance Chairman Max Baucus of Montana and Senate Majority Leader Harry Reid of Nevada, an additional 6 weeks of benefits -- on top of the added 14 weeks -- would be available in states with unemployment higher than 8.5%. Twenty-six states and Washington, D.C., have rates of 8.5% or higher.

However, under the legislation as written, it is unclear how many people in those high unemployment states could ever collect that additional 6 weeks of benefits.

To get them, a person in one of the affected states would have to exhaust the newly authorized benefits of up to 14 weeks first, and do so by the end of the year. But there are only eight weeks left in 2009.

Some people, who would get eight weeks or less of new benefits under the law, would be the ones who would likely qualify for the extra six weeks under the legislation as written. But expect Congress to attempt before the end of the year to further extend the eligibility window -- albeit in another piece of legislation -- to give people in hard-hit states like Michigan more of a chance to collect those six weeks.

$250 Stimulus Check To Go Michigan Seniors, Disabled Vets

As Originally Posted to the Detroit News

Seniors and disabled veterans in Michigan can start looking for a $250 check from the economic recovery package beginning in early May, the White House announced Thursday.

The onetime check should be received either via mail or direct deposit by the end of May, said Rep. Gary Peters, D-Bloomfield Township.

"This boost for seniors and veterans will be extremely stimulative for our economy," Peters said.

"Retirees and veterans on fixed incomes are likely to spend this funding quickly, generating increased economic activity. And, of course, providing an increased benefit for seniors and those who have served our country so they can make ends meet in tough times is the right thing to do," he added.

The check will be sent separately from regular monthly benefits.

Others who qualify for the $250 check are Railroad Retirement Board and Social Security and Supplemental Security Income beneficiaries. The exception is SSI recipients getting Michigan Medicaid insurance in care facilities, Peters said.

People who overlap into more than one category will only receive one check for $250, Peters said.

Also by April 1, the "Making Work Pay" tax credit of $400 per person or $800 per couple kicks in. Wage earners will see a reduction in withholdings from their regular paychecks.

The reduction totaling $400 over one year is for individuals earning $75,000 or couples earning a combined income of $150,000.

Individuals earning up to $95,000 or couples earning up to $190,000 will get a smaller reduction.

Michigan Clinics Receive Stimulus Money For Uninsured

Originally Posted at WZZM13

At least 2 health centers in West Michigan will get a portion of new stimulus money coming to the state.

More than $8 million dollars will be divided between 29 federally qualified community health centers. The Cherry Street Health Services and Saint Mary's Heartside Clinic are two of them.

"The amount of money that we are getting right at this time is $604,000 and with that we will be able to add 13 new staff members. Those include two dentists, a hygienist a physician and medical assistants, dental assistants and others," said Chris Shea, the executive director of Cherry Street Health Services.

The agency operates 13 clinics in Kent County where low income residents can get help with health, dental and counseling services. Shea said last year the clinics served 45,000 people but says there were many more they could not help.

"We estimate there are as many as 4 times that number of people who have limited access to health care primarily due to income. It is right on time. It is coming to us quickly it certainly is not in the amounts that are needed to serve everyone, but it is at least a good boost to get us moving in the right direction," he said.

Shea said the money will allow the clinics to provide care for more people who have lost their jobs or Michigan health insurance.

Nationally clinics will use the funds over the next two years to create or keep about 150 jobs and provide care for nearly 54 thousand new patients.

St. Mary's Health Care is receiving stimulus money to the tune of $194,000. A spokesperson for the center says it will use it's money to extend hours and services offered at it's Heartside Clinic.

Each year about 8,000 homeless people visit the clinic. These are generally people without a Michigan health insurance company. The grant money will allow the clinic to provide 2,500 more visits to the homeless or destitute.

60% Of Americans Say No More Money For GM, Chrysler

Originally Posted to Detroit Free Press

More than three in five Americans oppose more government loans to General Motors Corp. and Chrysler LLC, according to an R.L. Polk survey released today that is consistent with other recent opinion research.

A clear majority – 61% — told the Southfield-based auto research firm they are against more loans.

The Polk results came one day after President Barack Obama told CBS “60 Minutes” interviewer Steve Kroft that “the only thing less popular than putting money into banks is putting money into the auto industry.”

In the Great Lakes region, where auto manufacturing is more prevalent, 16% “strongly agreed” when asked by Polk if they supported loans for GM and Chrysler. That compares to only 4% in the New England region.

Lonnie Miller, a Polk analyst, declined to share the level of opposition and support from other regions because the number of respondents was not large enough to be statistically significant.

Despite the high level of opposition, it was lower than in other surveys.

In a USA Today/Gallup poll conducted between Feb. 20 and 22, 72% opposed a second round of loans for the automakers. A mid-February survey by Rasmussen Reports reported that 64% were opposed.

Opposition in the Polk survey was lower than the 72% who opposed a second round of loans in a USA Today/Gallup poll conducted between Feb. 20 and 22. It’s also slightly lower than the 64% reported in a mid-February survey by Rasmussen Reports.

In the Polk survey, about the same percentage of people who opposed more loans — 60% — also recognized that denying them would have dire economic consequences.

Miller said the data reveals an attitude of “it’s a problem, but it’s not a problem for taxpayers to fix.”

GM and Chrysler expect a March 31 decision by the president’s auto task force on their latest loan requests.

“Right now the public doesn’t want to give anything to anybody, but they’re in the same boat,” said George Magliano, director of research at HIS Global Insight. “What matters are the turnaround plans, and concessions from the union and the bondholders. The task force and Congress will then decide if they can be viable.”

While GM did not respond to the survey results, Chrysler said it expects many viewpoints.

“We are completely focused on working with the automotive task force to ensure the viability of an industry and a company that provides economic benefits to communities across the country,” Chrysler said in a statement.

“For example, Chrysler purchases more than $30 billion (2008) in automotive parts from more than 6,000 suppliers in all 50 states, and partners with more than 3,200 dealers that employ more than 140,000 people in local communities throughout the U.S."

Cities V States In Battle Over Stimulus Money

As Originally Posted to The Wall Street Journal

SEATTLE -- As the first money from the federal economic-stimulus package begins to flow, a showdown between Washington-state lawmakers and Seattle officials over road projects could augur a wave of battles around the country over how stimulus dollars are spent.

The fight started earlier this week, when Washington legislators unveiled a plan for spending the state government's $341 million share of the combined $492 million in federal highway aid that will go to state and local jurisdictions in Washington. The list -- long on smaller projects such as road repaving and replacement of traffic cameras -- didn't include funding for projects in the city of Seattle, the heart of the state's economy and population.

Seattle Mayor Greg Nickels blasted state lawmakers for omitting two major road projects in the city that he argues are "shovel ready" and that he said will create more construction jobs and continuing economic benefit to the state.

"This is not what the president intended," Mr. Nickels said Tuesday in a speech to a Seattle business group. "This is bad policy and bad economics. It disrespects the voters and taxpayers of this great city and is an insult to the companies that contribute so much to the state's economy."

Mr. Obama has repeatedly warned governors and mayors that they must spend money from the federal stimulus package quickly and efficiently, and not use it for questionable pet projects.

Most states already have a long list of projects eligible to receive federal stimulus money, which the Department of Transportation says it may start distributing as soon as Tuesday if governors certify that their states will use the funds properly. But the process of coming up with a final roster varies among the states; in some, a transportation commission makes the final decision, while in others, like Washington, state legislatures get more directly involved.

Tension has been rising -- especially between big-city mayors and state officials -- in locales such as New York, Florida, Missouri and Michigan over how to spend the roughly $200 billion of stimulus money that will flow through the states and over what role the legislatures will play in divvying up the funds. Across the country, local officials are disappointed that projects in their areas -- such as a new highway in Laredo, Texas -- haven't been included on the stimulus list.

"We want to make sure that the metropolitan areas are getting their fair share," Los Angeles Mayor Antonio Villaraigosa told reporters in Washington, D.C., last week. "What we don't want is states building roads that connect the ducks to the geese, and not people to goods, the way metropolitan areas do."

Nowhere does the fight so far seem as fierce as in Washington state, which ultimately will get about $492 million from the $26.8 billion of highway funds included in the stimulus package. Of that, $151 million will go to local jurisdictions, including roughly $70 million that is specifically set aside for the Seattle region under a provision that directs money to urban areas.

But Seattle was counting on roughly $75 million more to help fund two projects that the city argues will create 1,300 jobs, including the rebuilding of a congested road called Mercer Street into a major thoroughfare leading to the city's expanding South Lake Union neighborhood. The area is home to new facilities for the Bill & Melinda Gates Foundation, a University of Washington School of Medicine research facility and other employers.

In an interview in his Seattle office, Mr. Nickels said the state can get more-lasting economic value for federal dollars in the city than it can with the projects it announced elsewhere. "I'm not saying they're made-up projects, but resurfacing or chip-sealing streets that carry 7,000 cars a day just doesn't match up in terms of what value it's returning," he said.

Critics contend that many of the small projects on the legislature's list will be handled by government road crews, and so will not create much in the way of economic stimulus. "They'll be using existing resources, especially for the small ones," said Michael Ennis, director of the Center for Transportation at the Washington Policy Center in Olympia. "I question whether it will create any jobs."

Judy Clibborn, chairwoman of the state's House transportation committee, which put the list of transportation projects together, said the legislature has always intended to use its portion of federal aid for state projects. She questions whether Seattle's projects are close enough to being shovel-ready to meet requirements for such money. With its $341 million in federal funds, the state said it can create 3,300 jobs. Ms. Clibborn, a Democrat from Mercer Island, said "paving projects are not glitzy" but still essential. "This is a good, fast way to get money on the ground," she said.

David Postman, a spokesman for Vulcan Inc., a company owned by Microsoft Corp. co-founder Paul Allen that is a major landowner in the area around the proposed Mercer Street project, said state lawmakers have "essentially turned transportation planning on its head by declaring all these small repaving and pothole-filling projects as state projects." Meanwhile, Mr. Postman said state lawmakers are classifying as local proposals the two major Seattle road projects.

Washington Gov. Chris Gregoire said she is working with the legislature to put Seattle road projects on the list of funding from the state's share of the federal stimulus package, but lawmakers said they won't budge on the issue. "The list will not change," Ms. Clibborn said.