Report: Vt. hits stimulus jackpot

By Dan McLean, Free Press Staff Writer • March 11, 2009

Vermont ranks No. 5, on a per-capita basis, for how much money is being distributed through the federal stimulus plan, according to a report in Rolling Stone magazine.

The analysis examines how $525 billion in stimulus money is being handed out to the states through the $787 billion measure — and determines that Vermont is receiving $2,163 per resident. Washington, D.C., received the most per resident at $2,614, and Utah received the least, $1,420, according to the analysis. The average was $1,750.

The $525 billion state-distribution figure was compiled by the Center for American Progress, a progressive think-tank. Rolling Stone used U.S. Census data to create the per-capita statistics.

The analysis accompanies an article by Nobel Prize-winning economist Paul Krugman, titled “Obama’s Bailout.” The edition will be published March 19.

“Indeed not since FDR has a new president moved so aggressively on the economic front,” the columnist for The New York Times wrote.

However, he says the nearly $800 billion stimulus plan is not enough to jolt the sagging economy back to life. “What’s truly scary is the breadth of the crisis,” he wrote. “What began as a housing bust mutated into an implosion of the entire financial system.”

The president set his target too low in an effort to seek Republican support and included too much in tax relief, as opposed to direct government spending, he said, noting a large chunk of tax cuts will be saved, not spent.

“At some point, probably later this year, the Obama administration will realize that what it has done is not enough. ... At that point, the administration will devise a more ambitious plan, one designed not just to provide a cushion against the slump, but to lead the way to full recovery. That almost surely involves nationalizing several major banks on a temporary basis and pumping in a lot of cash to get them running effectively.”

Rep. Peter Welch, D-Vt., announced Tuesday his office will make available a guide to the $787 billion American Recovery and Reinvestment Act for Vermont taxpayers, businesses, nonprofits and municipalities.

“Throughout Vermont, folks are wondering how this recovery package will help them weather this economic storm,” Welch said in a written statement. “This one-stop shop will connect Vermonters to the myriad funding opportunities that have been designed to create jobs and rebuild our economy.”

The “User’s Guide to Economic Recovery Resources” is available by calling 888-605-7270 or by logging on to www.welch.house.gov/recovery