Last Update: Feb 9 @ 3:06 PM
Economic Development
R.I. would gain 13,000 jobs,
Mass. 83,300 under Obama plan
BLOOMBERG NEWS FILES / MELISSA GOLDEN
“WE NEED to immediately jump-start job creation, and President Obama’s American Recovery and Reinvestment Plan will help those who have suffered the most,” said National Economic Council (NEC) Director Lawrence H. “Larry” Summers.


WASHINGTON – Rhode Island could expect to create or retain 13,000 jobs under President Barack Obama’s financial stimulus plan, while Massachusetts could gain 83,300 jobs, according to state-by-state data released by the White House.

“We need to immediately jump-start job creation, and President Obama’s American Recovery and Reinvestment Plan will help those who have suffered the most,” said National Economic Council (NEC) Director Lawrence H. “Larry” Summers.

Independent analyses by both Macroeconomic Advisers and Moody’s have confirmed that the plan will meet the president’s overall goal of creating or saving 3 million to 4 million jobs over the next two years, the White House said. More than 90 percent of those jobs would be in the private sector, in industries from alternative energy to education to health care.

“Our economy is in the midst of an unprecedented crisis and we need to act now,” Summers said.

The anticipated employment impact in the 50 states plus the District of Columbia – based on an analysis of government data by Christina Romer, chair of the Council of Economic Advisers, and Jared Bernstein, chief economist to Vice President Joseph R. Biden, in a report dated Jan. 9 – ranges from 421,000 jobs in California, 286,000 in Texas and 228,000 in New York to 8,000 jobs apiece in Vermont and Wyoming.

In a state-by-state fact sheet released this afternoon, the White House detailed the anticipated local impact of several provisions of the president’s stimulus plan:

• A “Making Work Pay” tax cut of up to $1,000, “designed to pay out immediately into worker’s paychecks.” The tax cut – intended to reach 95 percent of American workers and their families – would reach an estimated 2.53 million Massachusetts workers and 470,000 in Rhode Island.

• An additional $100 per month in unemployment insurance benefits to workers who have lost their jobs during the recession, including about 503,000 in Massachusetts and 86,000 in Rhode Island.

• Extended unemployment benefits to those who have exhausted regular jobless benefits, including about 84,000 in the Bay State and 17,000 in Rhode Island.

• “The most ambitious school modernization program on record, sufficient to upgrade 10,000 schools … so our children have the labs, classrooms and libraries they need to compete in a 21st-century economy.” Locally, the plan would allocate enough money to modernize at least 167 schools in Massachusetts and at least 37 in Rhode Island.

Other provisions likely to have a strong local impact – although it was not quantified in today’s White House fact sheets – include:

• A drive to double the nation’s “green” generating capacity over the next three years, creating enough renewable-energy capacity to power 6 million homes.

• An effort to computerize all U.S. health records over the next five years, to reduce health care expenses and help eliminate medical errors.

• A push to renew the nation’s aging transportation infrastructure, by 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.”

“Across the country, this plan 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,” the White House said.

“Make no mistake about it, the need for action on this bill is dire,” said U.S. Sen. Jack Reed. “Rhode Island’s unemployment rate has doubled over the last two years: Two years ago, 28,611 Rhode Islanders were looking for work and today, over 56,000 men and women are unemployed. We need to reverse this trend and put people back to work in good, high-paying jobs.

“We are working with President Obama to begin to turn the tide by saving or creating 13,000 jobs in Rhode Island over the next two years and provide tax cuts for 470,000 families so that more people will see an increase in their paychecks,” the senior senator from Rhode Island continued. “After eight years of economic mismanagement by the Bush administration, we need to reinvest in the American people and reestablish a sense of hope, a sense of progress and a sense of opportunity in our state.”

U.S. Sen. Sheldon Whitehouse agreed. “We can’t afford stall tactics and delay when tens of thousands of Rhode Islanders are out of a job and many more families are struggling to make ends meet,” he said in a Feb. 6 statement. “The recovery plan will put our state back to work, cut taxes and provide other needed relief for people who need help the most, and make smart, valuable investments in our present and our future. It’s time to pass this bill and begin to jump-start our faltering economy.”

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News and information from the Obama administration– including the latest presidential executive orders, proclamations and nominations – are available from the White House briefing room at www.WhiteHouse.gov.

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