• Posted on Tuesday, February 10, 2009
  • Bookmark and Share
  • email
  • |
  • print
  • |
  • rss

tool name

close
tool goes here

Its senators voted no, but S.C. will get billions from stimulus

Stay Connected

Follow us on Twitter Follow us on Facebook Follow us on your iPhone
Follow us on your Android device Sign up for email newsletters RSS

More on this Story

WASHINGTON — The Senate on Tuesday passed an $838 billion economic-stimulus bill demanded by President Barack Obama despite opposition from Sens. Lindsey Graham, Jim DeMint and all but three other Republican senators.

The massive mixture of spending, tax cuts and tax rebates, passed by a 61-37 vote, would be worth $10 billion to South Carolinians and to their state government, most of it by the end of 2011.

Graham, a Seneca Republican, ridiculed the Senate legislation as "an obscenity" and "a bunch of garbage" that won’t come close to meeting Obama’s goal of creating or preserving 4 million jobs.

"There are some things that will help South Carolina in this package," Graham said before the vote. "But for every dollar that will create jobs in South Carolina, there's another dollar that will grow government and pay for people's pet projects."

Sens. Susan Collins and Olympia Snowe, both of Maine, and Sen. Arlen Specter of Pennsylvania were the only three Republicans to vote for the plan.

The Senate bill is similar in cost to an $819 million stimulus measure the House passed last week – without a single Republican vote - but they have significant differences.

The Senate package removes more than $291 million contained in the House plan for building and repairing South Carolina's public schools, colleges and universities.

Under the Senate bill, the state government would get $445.5 million to offset its budget deficit and education shortfalls - less than half the $905 million contained in the House legislation.

Much of the funds decreased or eliminated from the House measure are used in the Senate package to provide $1 billion in tax relief for South Carolinians - $69 billion nationwide - hit by the alternative minimum tax.

The Senate bill would give the state $882 million in extra Medicaid payments; $566 million in increased unemployment benefits; $482 million to build and repair roads and bridges; $335 million for low-income health insurance and almost $260 million for food stamps.

Senators and representatives on a conference committee immediately began negotiating the two plans’ differences, with the goal of producing a unified bill to be passed by Congress and signed into law by Obama before the President's Day holiday next week.

Aides to House Majority Whip Jim Clyburn said the Columbia Democrat was disappointed that the Senate had removed school-construction funds and cut in half the state-deficit-reduction money. But he hoped the conference committee would restore at least some of the funding.

Handed a note while speaking to several hundred Floridians at a Fort Myers town hall, Obama elicited cheers by reporting the news from Washington.

"The Senate just passed the Economic Recovery and Reinvestment Plan," Obama said. "That's good news."

Despite receiving so little Republican support, Obama has hammered Congress to pass his stimulus bill, warning that a failure to act could turn crisis into catastrophe.

The Senate passed the stimulus bill shortly after Treasury Secretary Timothy Geithner unveiled a financial-services rescue plan that could cost a staggering $1.5 trillion to stabilize banks, thaw lending and revive the housing market.

DeMint, a Greenville Republican who helped galvanize Senate opposition to the stimulus measure, criticized the growing government intervention in the private sector as wasteful and counterproductive.

"Democrats are now asking taxpayers for a trillion-dollar spending bill, a trillion-dollar (bank) bailout, and they will soon seek over $400 billion more for an omnibus appropriations bill filled with earmarks," DeMint said.

"I'm very concerned that this reckless spending will create a staggering deficit that will lead to inflation and higher taxes that will cripple our economy," he said.

Republicans initially cheered Obama’s post-election pledge that tax cuts would make up 40 percent of his stimulus package.

Tax cuts account for 35 percent of the Senate bill's cost, with tax rebates making up an additional 10 percent.

How much for SC

Tax cuts $4.26 billion = $1,000 per person
Tax rebates$1.22 billion = 286 per person
Medicaid payments$ 882 million
Other spending$ 4.18 billion

JOIN THE DISCUSSION

We welcome comments. To post one, you must sign in using either your McClatchyDC login or your login for Facebook, Twitter or Disqus. Just click the appropriate box below.

Please keep your comment civil, short and to the point. Obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. If you find a comment abusive or inappropriate, please flag it for the moderator by placing your cursor on the comment, then clicking the "flag" link that appears. Thanks for your participation.

ECONOMY IN TURMOIL

economy in turmoil

Read McClatchy coverage of the economic pain Americans around the country are feeling, from Florida to California to Alaska.

ECONOMY QUESTIONS & ANSWERS

 hall & pugh

McClatchy correspondents Kevin G. Hall (left) and Tony Pugh are available to answer your questions about the economic meltdown at home and abroad, and what's in store for ordinary Americans.

Q&A: THE HOUSING CRISIS

Mark Zandi, the chief economist for Moody's Economy.com, is took questions from McClatchy readers about the nation's deep housing crisis. His book, "Financial Shock," offers a 360-degree look at what caused the crisis, what mistakes were made and who made them. It offers a way forward to prevent future crises.

Q&A: TERMINAL CHAOS

U.S. air travel these days is about as fun as a trip to the dentist. Departure delays are rampant, bags often miss the flight you've caught and rising jet fuel prices have major airlines charging to check a bag. In his new book "Terminal Chaos," George Donohue, a professor and former high-level Federal Aviation Administration official, explains why our system of air travel is broken and what can be done to fix it. Read the responses.

Q&A: THE THREE TRILLION DOLLAR WAR

For two weeks, Nobel Prize-winning economist Joseph Stiglitz and Harvard professor Linda Bilmes, authors of "The Three Trillion Dollar War," fielded questions about the cost of the Iraq war and its impact on the U.S. economy. They're not taking new questions, but they're still posting answers to ones they've already received. Read their responses.