HARRISBURG -- While all details of the massive federal economic stimulus bill weren't yet set in stone yesterday, Vice President Joe Biden was optimistic that Pennsylvania could receive $16 billion over two fiscal years.
The money would include almost $2 billion for repairs to 428 structurally deficient bridges, plus hundreds of miles of road repaving and improvements for mass transit. This work -- along with other funds for safety improvements, interchange upgrades and traffic congestion relief work -- should create more than 45,000 new construction jobs in the state, Mr. Biden and Gov. Ed Rendell told a Capitol news conference yesterday.
The stimulus package accord reached in a House-Senate conference yesterday, which still must be voted on by the full U.S. House and Senate, also contains funds to pay for tax cuts for as many as 4.9 million Pennsylvanians, part of 100 million Americans who would get tax relief and hopefully will inject some of it into the struggling economy, Mr. Biden said.
The Scranton native spoke to reporters in Harrisburg only an hour or so before negotiators in Washington reached their tentative agreement on the $789 billion national package. With some aspects still being worked out, Mr. Rendell didn't have a breakdown of what the state would receive in all categories.
Mr. Biden said the bill could provide an additional $1 billion for jobless benefits for unemployed people, another $1 billion for food-stamp recipients and funds to weatherize homes of as many as 2 million state residents, those not making more than $31,000 a year.
The 45,000 Pennsylvania road and bridge construction jobs would be part of an estimated 3.5 million to 4 million jobs that the stimulus package would create nationally, Mr. Biden said.
Some major questions are still unanswered. One is how much Mr. Rendell will get for state general fund expenditures for the fiscal year starting July 1. The initial House-passed stimulus bill contained $79 billion for all states, with Pennsylvania to get nearly $1 billion. The Senate version had $49 billion, and Mr. Rendell warned Tuesday that "moderate" cuts he has proposed in state spending for 2009-10 would turn into "severe" cuts if the state had to absorb a $1 billion reduction over two years.
The $29 billion budget for fiscal 2009-10 that Mr. Rendell proposed last week "was based on the House version," Rendell aide Steve Crawford said. Without the House version's extra money, the state budget could face a $500 million hole, which could mean $20 million in spending allocations for hospitals, $50 million in cuts for nursing homes and $70 million in reductions in subsidies for basic education. The governor has already proposed nearly $1 billion in cuts, including eliminating 100 programs.
Sen. Jay Costa, D-Forest Hills, said the House version also gave greater flexibility in using mass transit funds, which could make it easier for the Allegheny County Port Authority to fund $118 million to cover cost overruns on its dual-tunnel transit extension to the North Shore.
Mr. Biden thanked Pennsylvania Sens. Arlen Specter and Bob Casey for supporting the stimulus measure Tuesday. He said Mr. Specter, one of only three Republicans to join with Democrats in backing it, "showed real courage."
