Ohio Federation of Teachers
Pass Economic Plan Quickly

 

What Ohio Needs in a Federal Recovery Package

At flat funding for FY2010-11, Ohio is projected to have a $7.3 billion deficit. If each agency is funded at 90% for FY10-11, Ohio would still have a $4.7 billion deficit for the coming biennium. Additionally, Ohio is facing a $640 million deficit in the remaining portion of FY 2009.

Many governors, including Ohio’s, must introduce their budgets in January and February 2009. Assistance is needed immediately if we are to avoid budgeting for and beginning to execute even more painful reductions. While infrastructure money would be welcomed, states also need flexibility to continue providing the important services they currently provide.

Sample Letter for Campaign

Subject: Help Ohio's Economy Recover

Dear [ Decision Maker ] ,

At this critical time in our history, I urge you to work with President-elect Obama and support swift passage of an economic recovery and jobs creation package.

The increasing depth, breadth and projected duration of the economic crisis point to the need for bold action that will stimulate the economy and lay the foundation for recovery.

The new Congress must respond with the same sense of urgency that motivated the passage of a bailout package for Wall Street and that responds directly to the needs of Main Street Americans. Such action also will be a solid first step toward realizing President-elect Obama's goal of creating or preserving 3 million jobs over the next two years.

To this end, I urge that the stimulus package include the following:

* Immediate fiscal relief to states--The federal government should increase the Federal Medical Assistance Percentages (FMAP) contribution to the state Medicaid program substantially and increase funding for the Social Service Block Grant over the next two years. These countercyclical programs will provide immediate help to cash-strapped states and help maintain vital public services, such as education and healthcare;

* Investment in improving our nation's infrastructure--States need assistance to rebuild a crumbling infrastructure. Building for the future will result in improved roads, schools, bridges, and transit and water systems as well as more jobs for unemployed and underemployed workers. The final package should include a significant investment for "ready to go" infrastructure projects across the nation. These investments will provide immediate benefits by putting people to work and buying goods, and also will benefit Americans for years to come by creating "green jobs" using technology that will increase energy efficiency;

* Immediate federal assistance to school districts facing budget cuts--State and local governments are cutting back on one of their most essential investments: educating the next generation. This disinvestment in education is shortsighted because it places our economy in a race to the bottom for years to come. Even in these tough economic times, for the long-term health of our country it is imperative to reinvest, not disinvest, in education. The federal government should provide substantial funding for an emergency education stabilization fund for school districts. This could be used to fund any of the activities already authorized under ESEA (the Elementary and Secondary Education Act) or IDEA (the Individuals with Disabilities Education Act); and

* College accessibility--Public colleges and universities must keep their doors open, their classes affordable. their education programs up to date, and maintain the high quality of their workforce, in the face of rising enrollments. Unfortunately, colleges and universities are typically the first to see a reduction in state investment and support when states face budget shortfalls. At least 24 states already have implemented cuts to public colleges and universities, and many institutions are implementing large tuition increases to make up for insufficient state funding. Although the prior Congress did important work by beginning to restore the purchasing power of Pell Grants, the next Congress must carry through on this commitment by fully funding the Pell shortfall to ensure that students with the greatest financial need receive sufficient assistance. Congress also should take steps to increase the maximum Pell Grant.

Consideration also should be given to providing funds to help states sustain current investment levels in programs for pre-K education, teacher quality, and child care.

Please allow flexibility of Title I spending to help cover lost state revenue.

Sincerely,

Campaign Launched:
January 20, 2009



Background Information

 

What Ohio Needs in a Federal Recovery Package

 

At flat funding for FY2010-11, Ohio is projected to have a $7.3 billion deficit. If each agency is funded at 90% for FY10-11, Ohio would still have a $4.7 billion deficit for the coming biennium. Additionally, Ohio is facing a $640 million deficit in the remaining portion of FY 2009.

Many governors, including Ohio’s, must introduce their budgets in January and February 2009. Assistance is needed immediately if we are to avoid budgeting for and beginning to execute even more painful reductions. While infrastructure money would be welcomed, states also need flexibility to continue providing the important services they currently provide.