The Recovery Act invested millions in new projects that are improving our infrastructue, repairing homes, and much more. But it also provided millions in direct benefits for families, students, businesses, investors, and more including more than $288 million in various forms of tax relief. Guidance on how to access each of those benefits is below.
By the summer of 2008, Texas was already feeling the same symptoms that plagued the rest of the nation and much of the world. Exports had dropped sharply, the energy markets struggled with higher prices and lower demand, and the state’s unemployment rate cleared five percent in June 2008. A slowdown in consumer spending has contributed to gaps in the State’s budget in both 2009 and the upcoming 2011 legislative session.
It was in this context that state and federal policymakers began discussing remedies to our economic ills. To that end, federal lawmakers began by attempting to bolster the country’s financial sector and housing market. The centerpiece of their strategy was the American Recovery and Reinvestment Act of 2009, which was aimed at stimulating demand in the private sector, saving and creating jobs, and helping people weather the recession.
Recovery Act benefits quickly reached millions of people in Texas. More than 2.8 million households have benefited from increased food stamp payments, hundreds of thousands more have taken advantage of a new tax credit for homebuyers, and more than $3 billion in unemployment benefits have been collected. The State also received much needed budget relief, using Recovery Act funds to close 97 percent of the State’s multi-billion-dollar budget gap, according to numbers published by the National Council of State Legislators. Recovery Act funds supplanted State obligations in many cases while contributing to increased expenditures in many programs:
The Recovery Act in the Texas State Budget, 2009
Source: CPPP
Recovery Act implementation was approached in very differently across states, with some creating temporary offices and working groups. Texas used its existing appropriation and spending procedures, with the Legislature choosing to maintain a “hands-off” approach.
Many state agencies have had their hands full managing their allocations. A year after the Recovery Act was passed, some major programs are finally hitting the ground here in Texas, including the Weatherization Assistance Program and many major road projects. The benefits are beginning to become clear: perhaps most importantly, Texas added 50,000 jobs in the fourth quarter of 2009. Still, state and federal policymakers are taking additional steps to create jobs and get the economy growing again.
The recovery in Texas the nation is far from complete or assured. The State’s budget problems will be a serious concern in 2011 and beyond, unemployment remains high, and many areas across the state are suffering from disproportionate poverty and lack of opportunity, especially now. The State will have to make a concerted effort to ensure that economic recovery benefits Texas students, families, and businesses statewide. This site aims to support that goal.
