Overview of the Recovery Act in Tennessee

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Overview of theRecovery Act in Tennessee
Mike Morrow, July 1, 2009
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• I am proud of Tennessee's reputation for good
  government, and I want and expect us to be a
  model for other states in how we handle Recovery
  Act money sensibly turning square corners, and
  with every nook and cranny of what we do and what
  we spend well-lighted and visible to the public.
• Governor Phil Bredesen

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Recovery Act Purpose

• The American Recovery and Reinvestment Act of
  2009 (ARRA) will
• Create and retain jobs
• Invest in the economy to speed recovery
• Build a foundation for long-term economic growth

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Recovery Act Priorities

• Modernize Americas infrastructure
• Enhance our energy independence
• Expand educational opportunities
• Increase access to medical care
• Provide tax relief
• Protect those in greatest need

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Recovery Act Funds

• Dispersed by an array of methods
• Tax changes
• Individual assistance
• Formula grants
• Discretionary competitive grants
• Distributed via federal, state and local
  governments as well as nonprofit and community
  organizations
• Rapid implementation required to put funds to
  work as quickly as possible

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Tax Changes

• Making Work Pay Credit for 2009 and 2010
• 400 for individual filers
• 800 for joint filers
• Full credit provided up to incomes of
• 75,000 per year for individuals
• 150,000 per year for married couples
• Impact on take home pay, on average
• 33 more per month for individuals
• 65 more per month for families

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Tax Changes

• First-time home buyer tax credit
• Up to 8,000 for purchases Jan. 1 Dec. 1, 2009
• No payback requirement
• Equal to 10 percent of the homes purchase price
  up to the maximumof 8,000
• Money Back for New Vehicle Purchases
• Taxpayers can deduct state and local sales taxes
  on certain new vehicles bought in 2009

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Tax Changes

• Earned Income Tax Credit (Tax Years 2009 and
  2010)
• Temporary increase in the EITC for taxpayers with
  3 or more qualifying children
• Additional Child Tax Credit
• Lowers the minimum earned income amount used to
  calculate the credit so more taxpayers qualify
  and increases the amount of the payments they may
  receive
• American Opportunity Credit (Tax Years 2009 and
  2010)
• More parents and students will qualify for help
  paying college expenses
• Adds required course materials to list of
  qualifying expenses
• Allows the credit to be claimed for four
  post-secondary education years instead of two

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Individual Assistance

• Food Stamps Program
• 13 automatic monthly increase
• Social Security and Supplemental Security Income
  (SSI)
• 250 one-time payment to more than 50 million
  individuals
• Unemployment Insurance
• 25 per week increase in benefits
• COBRA
• 65 subsidy of COBRA premiums for eligible
  individuals
• Higher Ed Financial Assistance
• Increases Pell Grant maximum award for eligible
  students from 4,850 to 5,350
• Creates new work-study opportunities for low- to
  moderate-income students

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants may flow through organizations to
  benefit individuals
• Nutrition for Seniors
• Approximately 14 million meals delivered to homes
  and senior centers across the U.S. through
  programs like Meals on Wheels
• Access to Health Care
• Funds for 126 new community health centers across
  the U.S.
• Low Income Weatherization
• Assistance to low income families in weatherizing
  and improving the energy efficiency of their
  homes
• Jobs and Training
• Summer jobs for youth
• Training and employment for dislocated and
  low-income adults
• Community service employment for older Americans

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for education
• Fiscal Stabilization Funds
• Delays or prevents cuts for pre-K programs,
  public schools and public institutions of higher
  education
• K-12 Education
• Title I grants for basic school expenditures and
  technical assistance to schools
• Individuals with Disabilities special
  education, pre-school and early intervention
• Education Technology

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for energy independence
• Energy Efficiency and Conservation Block Grants
• To develop local energy plans and energy
  assessments
• Other programs and activities that result in
  long-term energy savings and provide jobs
• State Energy Programs
• Funding to states to construct and carry out
  their own renewable energy and energy efficiency
  programs

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for transportation
• Roads
• Repair and build highways, roads and bridges
• Transit
• Repair and build Americas public transportation
  infrastructure
• Aviation
• Airport construction projects and investments in
  the air traffic control infrastructure

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for the environment
• Clean Water
• Water quality protection projects for wastewater
  treatment, storm water runoff pollution control
  and watershed management
• Drinking Water
• Drinking water infrastructure, including new
  treatment facilities and improvements to prevent
  contamination due to aging infrastructure
• Underground Storage Tanks
• Clean up sites with petroleum leaks from
  underground tanks and properly close sites
  abandoned by their owners
• Clean Diesel
• Projects to reduce diesel emissions

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for justice assistance
• Byrne Justice Assistance Grant Program
• To prevent, fight and prosecute crime
• Crime Victims Assistance and Compensation
• Support state compensation and assistance
  programs
• Internet Crimes Against Children
• Enhance investigative response to predators using
  the Internet or other technology to sexually
  exploit children
• Violence Against Women
• Transitional housing assistance for victims

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Formula Grants

• Formula grants for homeless individuals
• Education for the Homeless
• To meet the special needs of students who are
  homeless
• FEMA Emergency Food and Shelter
• Provided to agencies and non-profit organizations
  to provide food and shelter homeless individuals
• Homelessness Prevention (THDA)
• Financial assistance and services to prevent
  individuals and families from becoming homeless
  or to help those who are to be quickly re-housed
  and stabilized
• Additional grants for these services provided
  directly to local governments in Tennessees four
  largest urban areas

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Competitive Grants

• Funding available nationally on a competitive
  basis in education, research and technology

8.2 billion National Institutes of Health
research grants 2 billion Health information
technology 1.1 billion Early Head Start for
low income families 100 million Teacher
quality enhancement 57 million Autism study
15 million Preservation of historic structures
on campuses of historically black colleges and
universities
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Competitive Grants

• Funding available nationally on a competitive
  basis in training and national service

750 million Training and job placement in
high growth and emerging industries renewable
energy, health care 200 million Dislocated
worker assistance for people in job training in
areas of high unemployment or poverty 50
million YouthBuild program to help at-risk youth
gain credentials as they build or rehab
affordable housing 39.2 million Organizations
that host AmeriCorps programs
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Competitive Grants

• Funding available nationally on a competitive
  basis in energy and natural resources

20 billion Renewable energy study and
research 4.5 billion Smart grid investments
to modernize the nations electricity grid and
make it more efficient and reliable 400
million Energy efficiency improvements to reduce
carbon emissions 400 million Electric vehicle
infrastructure for states
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Competitive Grants

• Funding available nationally on a competitive
  basis in criminal justice

1 billion COPS grants to support hiring of
career law enforcement officers 225
million Byrne grants to support crime prevention,
improve administration of justice and provide
services to crime victims 125 million Rural
law enforcement to combat drug related crime
43 million Housing and support services for
victims of domestic violence, sexual assault or
stalking
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Competitive Grants

• Funding available nationally on a competitive
  basis in infrastructure and economic development

7.2 billion Broadband deployment and
infrastructure in rural, unserved and underserved
areas 2 billion Purchase and rehab vacant
foreclosed properties and create affordable
housing to stabilize neighborhoods 150
million To assist urban and rural communities
with severe economic dislocation and job loss due
to corporate restructuring 20 million Small
and emerging business enterprise grants for
rural distance learning networks and adult
education
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Accountability

• Unprecedented provisions for transparency and
  accountability
• Mandatory provisions to identify and prevent
  fraud, waste and mismanagement
• Detailed spending information at and
  www.staterecovery.org

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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Tennessees Online Resource
www.TNRecovery.gov

• News and updates
• Documents and reports
• Frequently asked questions
• Links to state and federal agency recovery Web
  sites

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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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The Road to Recovery
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American Recovery and Reinvestment Act of
2009 Speed economic recovery ? Create and save
jobs ? Provide needed services to Tennesseans
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The Road to Recovery

• Speed economic recovery
• Create and save jobs
• Provide needed services to Tennesseans

The American Recovery and Reinvestment Act of 2009
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