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AMERICAN RECOVERY AND REINVESTMENT ACT: THE IMPACT FOR North Carolina

The American Recovery and Reinvestment Act is a nationwide effort to create jobs, jumpstart growth and transform our economy for the 21st century. Across the country, this package will help businesses create jobs and families afford their bills while laying a foundation for future economic growth in key areas like health care, clean energy, education and a 21st century infrastructure.

In North Carolina, this package will deliver immediate, tangible impacts, including:

• * Creating or saving 105,000 jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. [Source: White House Estimate based on Romer and Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan.” January 9, 2009.]

• * Providing a making work pay tax cut of up to $800 for 3,230,000 workers and their families. The plan will make a down payment on the President’s Making Work Pay tax cut for 95% of workers and their families, designed to pay out immediately into workers’ paychecks. [Source: White House Estimate based on IRS Statistics of Income]

• * Making 118,000 families eligible for a new American Opportunity Tax Credit to make college affordable. By creating a new $2,500 partially refundable tax credit for four years of college, this plan will give 3.8 million families nationwide – and 118,000 families in North Carolina – new assistance to put college within their reach. [Source: Center on Budget and Policy Priorities analysis of U.S. Census data]

• * Offering an additional $100 per month in unemployment insurance benefits to 604,000 workers in North Carolina who have lost their jobs in this recession, and providing extended unemployment benefits to an additional 128,000 laid-off workers. [Source: National Employment Law Project]

• * Providing funding sufficient to modernize at least 263 schools in North Carolina so our children have the labs, classrooms and libraries they need to compete in the 21st century economy. [Source: White House Estimate]

In addition to this immediate assistance for North Carolina, the American Recovery and Reinvestment Act will help transform our economy by:

• * Doubling renewable energy generating capacity over three years, creating enough renewable energy to power 6 million American homes.

• * Computerizing every American’s health record in five years, reducing medical errors and saving billions of dollars in health care costs.

• * Enact the most significant expansion in tax cuts for low- and moderate-income households ever: Enacting the largest investment increase in our nation’s roads, bridges and mass transit systems since the creation of the national highway system in the 1950s.

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The American Reinvestment and Recovery Act Jumpstarting our Economy and Investing in Our Future

The American economy is in the midst of a crisis unlike any we have seen in our lifetime. The economy lost 3.6 million jobs in the last 13 months, the biggest job loss since the end of World War II. Many experts believe unemployment could reach double digits if no action is taken. In light of this historic economic weakness, President Obama is working with Congress to enact the American Recovery and Reinvestment Act, a nationwide effort to create jobs and transform our economy to compete in the 21st century. The $789 billion compromise package represents the most ambitious effort to stimulate the economy in our nation’s history. The package will:

• * Create or save 3.5 million jobs over the next two years. Based on an analysis by the Council of Economic Advisers, the $789 billion package will meet the goal of creating or saving at least 3.5 million jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector.

• * Provide nearly 40 percent of the package in direct relief to working and middle class families: The package includes about $230 billion in tax cuts for middle class families, including a Making Work Pay tax credit for 95% of workers and their families. In addition, the package provides direct relief for families by expanding unemployment insurance and offering payments to Social Security beneficiaries and veterans. The vast majority of the remainder of the package is provided in state fiscal relief and investments that also benefit working families.

• * Double renewable energy generating capacity over three years. It took 30 years to reach current levels of renewable energy production. This package will double that level over the next three years – enough to power 6 million American homes.

• * Invest $29 billion in a Clean Energy Finance Authority and Renewable Tax Credits that together will leverage an additional $100 billion in private investment in the renewables sector. The finance authority will provide loan guarantees and other financial support to help ease credit constraints for renewable energy investors and catalyze new private sector investment.

• * Make a $150 billion investment in our nation’s infrastructure – the largest investment since the interstate highway system in the 1950s: It includes a $17 billion investment in public transit and high speed rail, an historic effort to upgrade or nation’s electricity grid, and a $7 billion investment to expand broadband coverage throughout the nation.

• * Protect health care coverage for millions of Americans during this recession. The legislation provides $87 billion in the form of a temporary increase the Federal Medical Assistance Percentage so that no state has to cut eligibility for Medicaid and SCHIP because of budget shortfalls. This investment will protect roughly 20 million people whose eligibility might otherwise be at risk. It will also generate considerable state economic activity, jobs and wages.

• * Provide $25 billion in school construction bonds. This is the most ambitious school modernization program on record, sufficient to upgrade 10,000 schools and improve learning environments for approximately 5 million children.

• * Enact the most significant expansion in tax cuts for low- and moderate-income households ever: Under current law, a family of four earning the minimum wage currently lives below the poverty line. Under the plan, that family will be lifted out of poverty by a combination of an $800 Making Work Pay tax credit and $1,200 from an expanded child tax credit. All told, more than 2 million people would be lifted out of poverty by the plan.