Senator Ben Nelson Wrote Me

Dear Angela:

As someone who has been interested in our nation’s economic situation and who has previously provided input regarding the American Recovery and Reinvestment Act (ARRA), P.L. 111-5, it is important for me to update you as to what has happened with this legislation.

As you may imagine, this critical time has prompted an unprecedented number of Nebraskans such as yourself to call and write with questions or ideas on how to right our economy. Due to the sheer volume of comments I have received on this issue, thank you for understanding that it was impossible to respond individually to each inquiry, and please accept the thoughts which follow.

While it has become apparent that our nation is in the midst of the worst economic downturn in decades, I am happy to report that Nebraska’s unemployment rate fell to 4.4 percent in May. This figure dropped from April’s report, which had indicated a 4.5-percent unemployment rate. Nebraska did not report unemployment increases for the month of June. Nevertheless, I do believe the current economic and employment landscape still warrants further investment in job creation and preservation.

The original stimulus bill received from the House of Representatives had too much spending and included too many programs which would only be marginally stimulative. Upon receiving this bill, I went through each spending provision in an effort to eliminate expenditures which did not belong in a bill aimed at stimulating the economy and growing jobs. These “sacred cows” may certainly be worthy on their own merits, and I continue to look forward to considering them during the appropriations process. Throughout this effort, I reached out to many of my colleagues to carefully and critically review this bill with me and termed our bipartisan group, the “Jobs Squad.” All Senators were invited to participate in our open-door meetings, and input from both sides of the aisle informed our discussions. We pared down the ARRA, eliminating more than $100 billion of inefficient or less stimulative spending; and our amendment was adopted by the Senate.

The bill changed slightly during the conference negotiations with the House, and after several weeks of thorough consideration and bipartisan collaboration, I voted for the final version of ARRA. The Act passed the Senate on February 13, 2009, by a vote of 60-38; and President Obama signed it into law on February 17. I firmly believe this $789-billion investment in our country will continue to help grow our economy, get people back to work, and stave off a deeper recession. Here are some examples of provisions which will do just that, as well as strengthen our transportation, housing, health and educational infrastructure for future generations:

Reinvigorating the Housing Sector

The ARRA provides an $8,000 tax credit for first-time homebuyers for the purchase of a primary residence on or after January 1, 2009, and before December 1, 2009.

The U.S. Department of Housing and Urban Development (HUD) is sending more than $13 million to Nebraska for 98 public housing renovations and energy efficiency improvements in communities statewide as part of the Act.

Creating Jobs through Infrastructure Improvement

The ARRA invests $27.5 billion for roads, railways and bridges which will put people to work improving our nation’s transportation infrastructure. Nebraska will receive more than $235 million for these projects.

Nebraska will also receive over $40 million to support clean water infrastructure, flood control and environmental projects, and will see more than $70 million to invest in the renewable energy industry and to create “green jobs.”

Boosting the Economy with Education and Training

This Act provides $77 billion to help our nation preserve educational services, rebuild schools and support other critical services, of which $420 million will come to Nebraska.

In addition, Nebraska will receive approximately $10 million to invest in services for unemployed and dislocated workers, giving those who are seeking jobs the opportunity to obtain assistance finding new employment or to gain a competitive edge with new training.

Giving Tax Relief to Individuals and Families.

Ninety-five percent of taxpayers, or at least 710,000 Nebraskans, will benefit from the “Making Work Pay” personal income tax credit, totaling up to $400 per year for individuals, and up to $800 per year for married couples filing joint tax returns, for this year and next.

This law also protects more than 100,000 Nebraskans from being hit by the Alternative Minimum Tax (AMT) in 2009, exempting $46,700 from the AMT for single filers and $70,950 for joint filers.

And Tax Incentives for Businesses

The law packs $76 billion in business tax breaks into 2009 and 2010 to promote economic growth and save and create jobs.

A provision I fought hard to maintain will allow businesses with revenues under $15 million to carry operating losses back five years, rather than the usual two years, freeing up $4.7 billion for these businesses this year to help keep their doors open and save jobs.

It is true that investing at this time and scale will increase our national debt in the short run, though I firmly believe that doing nothing would have caused the financial crisis to grow greater and last longer, expanding our debt far beyond its current level. I want you to know that when the effects of the ARRA kick in, and the economy comes back firing on all cylinders, I will work hard to get the debt and deficit under control.

Key components to implementing these recovery measures are accountability and transparency. The ARRA established several oversight provisions, including strict reporting and certification requirements, and support for agency Inspectors General to conduct oversight. Federal, state and local agencies must report on an ongoing basis to the ARRA Accountability and Transparency Board regarding their use of recovery funds; and the executive branch’s Council of Economic Advisors must regularly report to Congress on the status of the recovery efforts. In addition to certifying that recovery funds are being used for their intended purpose, federal, state and local entities are also required to link such information to the public website, www.recovery.gov, which was set up by the Administration. At this website, taxpayers such as you can view how funds devoted to recovery efforts are being used, and it will be updated as recovery projects move forward. I encourage you to explore this site and hope you find this information useful.

Thank you again for expressing your views on these critical matters. I always appreciate hearing from civic-minded Nebraskans such as yourself, and hope you will not hesitate to contact me again on any issue of importance to you. Rest assured, I will continue to work with my colleagues on a bipartisan basis to help change the economic and fiscal policies which created the current economic crisis and will cast my vote, as I always do, for what is best for Nebraska and our nation as a whole.

Sincerely,

Ben Nelson
U.S. Senator

The Millions and Billions on spending has go to STOP. Our NATION is in DEBT beyond BELIEF and our GOVERNMENT keeps on SPENDING RECKLESSLY. I personally do NOT care how well intentioned our politicians try to make this out to be. We owe CHINA buckoo BUCKS and we’ve got spending and DEBT to the point of NO RETURN. The government should step back and STOP trying to control every single aspect of our lives. This is NOT the country I was born into.