WASHINGTON, DC – U.S. Senator Bob Casey (D-PA), a member of the Senate Banking Committee today sent a letter to U.S. Senate Majority Leader Harry Reid (D-NV) and to U.S. Senate Minority Leader Mitch McConnell (R-KY) outlining his priorities for the upcoming stimulus package.
“Now is the time for bipartisan action, and I am confident that the Senate can work together to produce a legislative package that will encourage the generation of family-sustaining jobs and support for families struggling in the downturn,” Senator Casey wrote. “I am committed to working with you to spur immediate new job creation and ease the challenges facing families in the current economic crisis. I also believe that while circumstances require us to stimulate the economy immediately, we have a unique opportunity to reinvent our economy for the 21st century.”
In the letter, Senator Casey expressed that the stimulus should be based on the new three “Ts”: Timely, Targeted and Transformative.
“Timely: Workers and families are suffering now, businesses of all sizes are struggling to stay afloat and access credit, and state and local governments face significant budget shortfalls. Any stimulus should be targeted at initiatives that can be implemented quickly.
“Targeted: Already this year, the Federal government has passed one stimulus and committed $700 billion to rescuing the financial sector. Any additional stimulus money should be directed to entities – whether households, businesses or state and local governments – that will spend it or lend it, thus pumping funds into the economy.
“Transformative: Although the United States now competes in a global economy, it does so with crumbling infrastructure that was not designed to meet the challenges or seize the opportunities of the next century, such as climate change, energy independence, or technological innovation. We also lack a clear human capital strategy, which deprives our workers and businesses of what they need to compete. We must take steps now to transform our economy for the world we live in, which is vastly different than the one our economy is built for.”
Full text of the letter is below:
Dear Majority Leader Reid and Minority Leader McConnell:
My constituents in Pennsylvania are looking to Washington for concrete action that will reverse the economic downturn. I am committed to working with you to spur immediate new job creation and ease the challenges facing families in the current economic crisis. I also believe that while circumstances require us to stimulate the economy immediately, we have a unique opportunity to reinvent our economy for the 21st century.
The problems that began in the housing and financial sectors are now firmly entrenched in the broader economy. I am deeply concerned that the 1.9 million jobs lost so far this year are only the beginning. Even working middle-class families are straining to cover the rising costs of important family expenses like health care and college tuition. The severity and length of this recession therefore requires us to take significant action. To that end, I believe we must provide a multi-year, tiered stimulus that will put people to work now and make the investments necessary to prepare our workforce and our businesses to compete on a global level over the long-term.
With that in mind, I suggest that whatever stimulus we pass be guided by three core principles: The stimulus should be timely, it should be targeted, and it should be transformative.
Timely: Workers and families are suffering now, businesses of all sizes are struggling to stay afloat and access credit, and state and local governments face significant budget shortfalls. Any stimulus should be targeted at initiatives that can be implemented quickly.
Targeted: Already this year, the Federal government has passed one stimulus and committed $700 billion to rescuing the financial sector. Any additional stimulus money should be directed to entities – whether households, businesses or state and local governments – that will spend it or lend it, thus pumping funds into the economy.
Transformative: Although the United States now competes in a global economy, it does so with crumbling infrastructure that was not designed to meet the challenges or seize the opportunities of the next century, such as climate change, energy independence, or technological innovation. We also lack a clear human capital strategy, which deprives our workers and businesses of what they need to compete. We must take steps now to transform our economy for the world we live in, which is vastly different than the one our economy is built for.
With these three principles in mind, I have specific suggestions for targeted Congressional action. At its core, this package should invest in initiatives that will encourage immediate job creation. To that end, I am calling for the following investments in the economic recovery package:
- Rebuilding Our Transportation and Water Infrastructure - Countless studies have demonstrated that every $1 billion in new infrastructure spending creates tens of thousands of new jobs. The package should therefore make funding available to states for “ready-to-go” highways, bridges, mass transit (including subways and light rail), airports, rail, and port projects. Capital funding for AMTRAK will fund the purchase of new rail cars. New funding for the Army Corps of Engineers, including a substantial investment in the national locks and dams program, will allow important initiatives to move forward. The package should also include new funding to help states and local municipalities begin work today on clean water and sewer projects that will both create jobs and clean up our rivers and streams.
- Revitalizing Communities - To help states and local communities speed completion of “ready-to-go” economic development projects that will bring new jobs and revitalize towns and neighborhoods, the recovery package should include significant new funding for the Community Development Block Grant Program, the U.S. Department of Agriculture’s Rural Development Program, and the U.S. Economic Development Administration. We also need to take action now to help states offset the ever growing costs associated with the Medicaid program, which end up being shouldered by both states and local health care providers that are major employers in local communities. Finally colleges, universities and community colleges have shovel-ready projects that can contribute to community revitalization and help meet local and regional needs for a skilled workforce.
- Supporting Small Businesses and Manufacturing - To help small businesses compete, I propose (1) increasing the availability of microloans for prospective small businesses and emerging entrepreneurs; (2) an extension of the Section 179 business investment expense deduction, which will encourage small businesses to make investments; and, finally, (3) a low interest loan program through the Small Business Administration for small businesses involved in technology development. Additionally, in order to help the manufacturing sector adapt to changing markets, we should immediately inject more funding into the Manufacturing Extension Partnership program.
- Protecting Communities – In light of the revenue shortfalls hitting municipalities and the direct correlation between economic slowdowns and crime rates, we should immediately increase funding for the Byrne Justice Assistance Grants program and the Community Oriented Policing Services (COPS) program. These programs play a crucial role in supporting local efforts to protect our communities.
In putting this package together, we must also take timely action to ease the burdens of the millions of faultless families now being swept up in the recession. Unemployment insurance, job retraining (including rapid response and trade adjustment assistance), and food and energy assistance (such as food stamps, food banks, and LIHEAP) are vital to millions of American families right now, and we must include spending to provide adequate assistance. Additionally, we need to take immediate action to stem the foreclosure crisis by implementing a foreclosure mitigation strategy.
We should also make more funding available to states for programs designed to keep families in their homes. We should also take steps in the next Congress that will strengthen our economy in the long run and prepare workers for the 21st century. This transformative spending should fall into one of three overlapping categories: human capital, innovative investments, and green and greening technology.
- Human Capital: The American worker is the backbone of families, communities, and companies. Unfortunately, our education system has not kept up with the rising demands of our times. All workers must now have the ability to pivot into new jobs throughout their careers, and this requires a new investment in our education system.
We must invest in childcare, early childhood and pre-kindergarten education, and the K-12 system. We must also improve the affordability of and access to higher education for all high school graduates, from those who will enter technical trade programs or community college, to those who will attend elite academic institutions.
We must also enhance the career training opportunities available to workers throughout their careers. The economy continuously demands new skills and makes old ones obsolete. Workers and businesses alike need an infrastructure that anticipates this and trains workers for the skills they will need next.
- Innovative Technology Investments: It is not only many of our roads and bridges that are obsolete and crumbling. Much of our broadband and information technology must be updated and upgraded to keep American companies ahead of their competitors around the world. Projects that would adopt the latest technology, such as high speed rail or universal broadband, need lead time. We must begin during the upcoming year to meet this important challenge.
- 21st Century Health Care: In the upcoming year, we must pursue the goal of ensuring that all Americans have access to affordable health care. Unmet health care needs create ripple effects across the economy, costing employers in lost productivity and imposing greater long-term health care costs when minor illnesses go untreated. As we work toward a comprehensive solution, we must take immediate action to implement cost-saving measures, including a robust investment in information technology, which will improve care and cut costs.
- Green Technology: Our Nation imports and consumes too much energy, and does so in an economically and environmentally unsustainable way. We must do better, and I believe that we can reverse this costly trend by coupling public investments with the creation of private sector incentives.
Taking bold and swift action to stimulate our economy is essential. Now is the time for bipartisan action, and I am confident that the Senate can work together to produce a legislative package that will encourage the generation of family-sustaining jobs and support for families struggling in the downturn. I look forward to working with you.
Sincerely,
Robert P. Casey, Jr.
United States Senator
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