Governor Rendell: Federal Recovery Investments Up 83 Percent in First Quarter

Putting more than 15,000 Pennsylvanians to Work, Stimulating Economy

HARRISBURG, Pa., April 12 /PRNewswire-USNewswire/ -- More than 15,000 full-time equivalent jobs were funded directly by the American Recovery and Reinvestment Act in Pennsylvania in the first quarter of 2010, Governor Edward G. Rendell said today. Investments in the first year translate into more than $1,700 per household in the state.

In the past quarter, state agencies invested nearly $600 million in Recovery Act funds -- increasing the total amount of federally reported Recovery Act funds invested by 83 percent over the total at the end of the previous quarter.

"The infusion of Recovery funds into our education system is helping school districts and colleges keep property taxes and tuition down while increasing learning opportunities for students," Governor Rendell said.

For example, in the Allentown City School District, Recovery Act funds supported 117 jobs ranging from career education coaches to class-size reduction teachers. The district is also using State Fiscal Stabilization Funds for extended day kindergarten programs that offer remedial assistance to academically needy students and for after school tutoring for elementary students.

In Westmoreland County, Recovery Act funds received by the Kiski Area School District are supporting jobs and helping expand technology resources, course offerings, kindergarten and professional teacher education.

"These districts are just two examples of how we are stimulating the economy and improving education in ways that would not be possible without these federal funds," Governor Rendell said.

"Overall, jobs funded by the Recovery Act are helping to stabilize our unemployment rate, which has been at or below the national rate for 83 months of the past 86 months.

"More importantly, we are reversing a dangerous trend in our job count," the Governor said. "In the first quarter of 2009 - before the Recovery Act kicked in - Pennsylvania lost 82,300 jobs; by the end of the year, job losses were cut to 12,600 and, based on the first two months of this year, we expect that trend of fewer job losses to continue when the March jobs numbers come out later this week."

Recovery Act funds continue to increase Pennsylvania's investments in the new energy economy.  In the past quarter, $22.8 million Recovery Act funds were invested in three large-scale wind energy projects that are estimated to put 387 people to work and leverage more than $200 million in private investments. The three projects include building 50 wind turbines that will help reduce harmful carbon dioxide emissions by nearly 450 million pounds annually -- the equivalent of removing 39,000 passenger vehicles from the road.

Beyond education and energy investments, taxpayers are seeing other benefits from the Recovery Act, including reduced federal income tax withholding, extra unemployment benefits, health care, infrastructure and public safety.

"Pennsylvania continues to exceed Recovery Act reporting requirements," said Ronald J. Naples, Pennsylvania's chief accountability officer and chair of the Stimulus Oversight Commission. "Again this quarter, we posted all federal reports online for public review immediately upon submission. Later this week, while some states are still filing their reports, we will provide another edition of the Citizens' Update to help residents understand how the money is being invested.

Over the weekend, Pennsylvania submitted 376 separate reports to meet the original deadline for Recovery Act fund recipients to file the latest quarterly report to the federal government to show taxpayers how, when, and where their tax dollars are being invested. The commonwealth-submitted reports cover 19 agencies and represent more than 3,200 vendors and recipients.

In addition to reports submitted by the commonwealth, every local government, business, organization and entity that received direct Recovery Act funding in the past three months from the federal government will file reports this week. All of the reports will be available from the federal government later this month, but Pennsylvania made each of its preliminary reports available immediately at www.Recovery.Pa.gov, click "Reports," in the top bar, then "1512 Reports."

"So far, Pennsylvania has injected nearly $8.5 billion into its economy," Governor Rendell said. "This amounts to $1,700 in Recovery Act funds invested per household in the state."

In total, Pennsylvania is on track to receive more than $26 billion from the American Recovery and Reinvestment Act. Of that $26 billion, individual and business federal tax credits and benefits comprise about $11 billion. The $13.5 billion flowing through state government agencies will build highways and bridges, help workers, improve the environment, support communities, develop alternative energy, and house residents. More than $2 billion will be awarded directly from the federal government to entities across the state, including local governments, transit agencies, businesses, non-profit organizations and universities, for a variety of projects and programs.  

For more information about the impact of Recovery Act funds in Pennsylvania visit: www.Recovery.Pa.gov.

Media contact: Barry Ciccocioppo, Governor's Office; 717-783-1116

Editor's Note: Following is a fact sheet highlighting some of the impact of Recovery Act funding in Pennsylvania.

Stimulus Impact Fact Sheet – April 2010

• In the 13 months of reporting on the 36-month Recovery Act, Pennsylvania has invested more than $8.5 billion into the economy for worthy projects and services.
  • This amounts to $1,700 in Recovery Act funds invested per household in the state.
  • This is a 47 percent increase in Recovery Act investments over the total invested at the end of the previous quarter.

• The commonwealth submitted 376 reports to the federal government on time on April 10 despite technical problems with the federal reporting Web site that forced a six-day deadline extension.
  • The reports cover $1.3 billion of Recovery Act funds spent through state agencies as of the end of March 2010.
  • There was an 83 percent increase in federally reported stimulus investments at the end of the last quarter compared to the amount as of the period ending Dec. 31, 2009.

• More than $1.6 billion has been invested to date in Pennsylvania's education system, including nearly $811 million for education improvements and innovation from the State Fiscal Stabilization Fund.
  • More than 10,000 full-time equivalent jobs were created or retained in schools throughout the state in the first quarter of 2010 – a nearly 300 percent increase from the previous quarter.

• Weatherization work to help save energy and reduce heating costs for residents is underway or complete in 3,814 homes.
  • Weatherization work in the first quarter of 2010 created or retained more than 480 full-time equivalent jobs – a 300 percent increase from the previous quarter.
  • In all, more than 29,000 homes will be weatherized over the next two years.

• A total of $2.5 billion is in the hands of more than 1 million unemployed individuals due to the Recovery Act funds helping families buy food, pay for rent, or pay their utilities.
  • More than $219 million in supplemental food stamp payments have been made to more than 1.5 million people.
  • Approximately 4.5 million households are paying $3.5 billion less in federal taxes due to the Recovery Act tax code changes by the end of this year.

• To date, more than $2.4 billion has already made it possible to continue providing health care to Pennsylvanians in need.

• PennDOT has obligated all $1.026 billion of funds for 326 road and bridge repair projects.
  • Bids have been opened for all 326 projects.
  • 245 projects have started work; 94 projects are complete.
  • More than 1,900 people were working directly on Recovery Act-funded transportation projects in February alone.
  • The U.S. House Transportation and Infrastructure Committee ranks Pennsylvania the number one large state in terms of rapid deployment of Recovery Act funds for transportation.

• PENNVEST has disbursed grants and loans of $63.4 million – 29 percent of $221 million total Recovery funds – to provide clean water and fix wastewater problems that will benefit more than 100,000 households across the state; helping 1.1 million people.
  • All but two of the 113 Recovery-funded clean drinking water and waste water projects have started and are expected to put 5,298 people to work.

• Recovery Act funds are increasing Pennsylvania's investments in the new energy economy.
  • Three large-scale wind energy projects are receiving $22.8 million for 50 wind turbines, putting 387 people to work and reducing harmful carbon dioxide emissions by nearly 450 million pounds annually -- the equivalent of removing 39,000 passenger vehicles from the road.
  • Nine projects in eight counties are receiving $12.1 million for combined heat and power projects that will cut costs and conserve energy.
  • Eight projects are investing $5 million into biogas energy efficiency projects.

SOURCE Pennsylvania Office of the Governor