February 4, 2009

Begich Addresses Alaska Needs in Economic Recovery Act

Legislation expected to create nearly 9,000 new jobs in Alaska

As Alaska suffers its highest jobless rate in four years, U.S. Sen. Mark Begich is working to ensure Alaska is treated fairly and could receive millions of dollars in federal assistance through the Economic Recovery and Reinvestment Act making its way through Congress. Begich is co-sponsoring amendments designed to improve accountability and oversight of the funding, and give state leaders the ability to decline the aid.

Under some versions of the bill, Alaska could receive close to $1 billion, including $630 million for roads, school improvements, education and training, energy projects, law enforcement efforts, tax credits and other areas.

"As Alaska's economy takes a downturn, we continue to work to improve this legislation to create jobs, cut taxes, and jumpstart our economy," Sen. Begich said. "We need to prepare for the investments coming our way, and I will continue to work with Alaska's communities to prepare lists of 'shovel ready' projects so work can begin as soon as Congress acts. Through increased accountability I want to see in the bill, the State can opt against the federal assistance if state leaders decide the assistance is unnecessary."

In the effort to make sure taxpayer money is invested responsibly, Sen. Begich is co-sponsoring an amendment advanced by Sen. Mark Udall (D-Colorado) requiring governors or other appropriate local officials to certify that funds allocated to a state for economic recovery are reviewed to make sure they create jobs or improve the economy.

Sen. Begich also has co-sponsored an amendment that says if a company is receiving federal assistance under the Troubled Assets Relief Program (TARP), the employees cannot earn more than the U.S. president, which is $400,000 a year, including bonuses and other perks. Begich also voted for an amendment that allows consumers to write off a portion of their interest on car loans.

"I don't support golden parachutes for corporate executives, and we need to continue to do more to help working Alaskans keep their jobs and stay in their homes," Sen. Begich said.

According to a report just released by the White House, the American Recovery and Reinvestment Plan will create or save 3-4 million jobs over the next two years. The report estimates 8,700 jobs in Alaska.

Begich said Alaska's families sorely need the economic recovery provided for in the bill. The state's unemployment rate hit 7.5 percent in December, the highest rate since March 2004, and has jumped nearly a full percentage point over the past year, according to the Alaska Department of Labor and Workforce Development. The number of unemployed Alaskans increased by more than 5,000 from December 2007.

Some of the investments expected for Alaska include:

· $132.4 million in Highway Funding to be used on activities eligible under the Federal-aid Highway Program's Surface Transportation Program and could also include rail and port infrastructure activities at the discretion of the states.

· $19.7 million through the Drinking Water State Revolving Fund to address the backlog of drinking water infrastructure needs.

· $152.2 million through the State Fiscal Stabilization Fund to local school districts and public colleges and universities in addition to incentive grants as a reward for meeting key education performance measures and additional funding for other high priority needs such as public safety and other critical services, which may include education.

· $11.1 million through the Weatherization Assistance Program.

· $7.2 million in Byrne/JAG grants to support law enforcement efforts.

Tax cuts benefitting Alaska families and businesses, include:

· Up to $500 for individuals and $1,000 for married couples for the Making Work Pay Tax Credit.

· $300 to Social Security beneficiaries, SSI recipients, and disabled veterans.

· $2,500 for the American Opportunity Tax Credit (an increase in the tax credit for higher education and allowing the credit for four full years).

· Up to $7,500 for the Improved First-Time Homebuyer Tax Credit for those who purchase a home between January 1, 2009 and August 30, 2009.

· Extended Bonus Depreciation and Small Business Expensing through 2009, allowing businesses that make capital investments to immediately deduct one-half the cost. Small businesses can immediately deduct 100 percent of the cost of these investments.

The legislation would protect over 26 million working families across the nation from the Alternative Minimum Tax, representing thousands of dollars in additional income taxes. According to the Congressional Research Service, 22,000 Alaskans would be protected from the Alternative Minimum Tax in 2009.

On Feb. 3, Sen. Begich sent a letter to Alaska Gov. Sarah Palin reiterating his commitment to making sure Alaska's unique circumstances, such as a shorter construction season, are addressed in the recovery package, and he again pledged to work with the state to make sure Alaska and its communities are prepared to deal with the investments the legislation provides.

From a Senator Mark Begich press release