Collins, 16 senators focus stimulus on job creation

Collins, 16 senators focus stimulus on job creation


Group ‘scrubs’ bill of spending, Snowe boosts small business
By Drew FitzGerald
Boston University Washington News Service
AP PHOTO BY LAUREN VICTORIA BURKE
Sen. Susan Collins, R-Maine, fol-lowed by Sen. Ben Nelson, D-Neb., exits a senators-only meeting on Capitol Hill on Thursday, where the details of the stimulus pack-age were discussed.

WASHINGTON — A bipartisan group of senators led by Susan Collins, R-Maine, and Ben Nelson, D-Neb., met three times Thursday to “scrub” a now $900 billion economic stimulus bill of measures that they said would not directly create jobs.

The meetings came a day after Collins and Sen. Olympia Snowe, R-Maine, each met with President Barack Obama to discuss their concerns about the size and makeup of the bill.

In the Capitol Hill meetings Thursday, closed at times even to top aides, Collins and 14 other senators pored over the legislation line by line, removing any provisions that they thought would not save or create jobs or jump-start spending.

“I know it’s unusual to think of senators doing that kind of painstaking, thorough work, but that’s exactly what we’re doing,” said Collins. “It’s always refreshing to be able to do that because there are no filters and you talk straight, directly to one another,” said Nelson, a fiscally conservative Democrat who also met with the president Wednesday.

Details on the proposed reductions were not available Thursday night, and the talks could continue into Friday, but the group has come up with at least $50 billion in cuts, according to a press spokesman for Nelson.

Caught in the hall during a break in the negotiations, Collins said that the bipartisan group has done “an in-depth scrub of the bill” to cut spending. Collins also said she originally wanted roughly a $650 billion package, but changed her mind after her meeting with Obama Wednesday.

“The president did convince me that a larger package would be good, but I can’t support a package the size of what the House passed,” she said.

“We don’t want a package that is too small, because that will end up just wasting the money,” Collins said. “On the other hand, we’re very leery of having an enormous package that would not be necessary and would just boost the federal deficit.”

As the meetings ran late into the afternoon, Collins said senators from both parties were disagreeing on several spending items. Part of the difficulty arose from different senators’ definitions of what is a stimulus, she said, because even economists differ on the ideal size of the package.

Snowe, who spent most of the week working to amend the tax portion of the bill, also said the spending half of the package needed revision. She said the dollar cost of the bill was not as important as its composition, though she said $900 billion was too much.

“I’m more concerned … that every measure is specifically geared toward job creation and stimulating the economy,” Snowe said in an interview. “When you’re going to spend to the tune of $800 billion, you’d better get it right.”

Snowe said it is important that more of the spending outlined by the Senate Appropriations Committee last week stimulate the economy relatively soon.

Both senators said they consider any measure not directly intended to create jobs inappropriate for the stimulus bill.

Snowe said she introduced an amendment to the economic stimulus plan on Thursday to provide a temporary 35 percent tax break for small businesses to prevent them from laying off more workers. The problem is made even harder because banks are unwilling to lend to businesses trying to stay afloat, she said.

“We’re seeing so many businesses on Main Street shuttering,” she said. “It’s an emergency, in that sense.”

Snowe also sponsored an amendment Wednesday to strengthen oversight of the Treasury Department when it decides to dole out the second phase of its $700 billion federal bailout program. Companies supported by the bailout would have to repay any cash bonuses they gave executives while receiving the federal funding. The Senate passed the measure by unanimous consent.

“The flawed framework of the first financial rescue package enacted by Congress left open the escape hatch of golden parachutes for top executives on Wall Street — the same individuals whose careless mistakes hurt the financial system and forced taxpayers to foot the bill in the first place,” Snowe said in a statement Wednesday.

The stimulus package passed the House last week without a single Republican vote, and President Obama has said he would like to have a bipartisan measure on his desk by the end of next week.

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59 comments on this item

Unfortunatley, this "stimulus" program, paid for with more debt (who will buy it, and at what interest rate?), or, worse yet, paid for by simply running the money printing presses, will breed a whole new set of problems from infation/hyper inflation. Why are there no economists speaking out? Are ther any real economists left?

If Congress wanted to stimulate the economy, it would cut payroll taxes in half -- quick and easy to do, and you start seeing results the very next payday.

This is about stealing from the taxpayers and funnelling money to whose campaign contributors.

It might be useful for folks to know what Susan Collins wants to cut out of this bill:

– $150 million cut to the Violence Against Women Act

– $50 million to the Victims of Crime Act

– $25 million to the Internet Crimes Against Children Task Forces

– $1.1 billion to Head Start

– $50 million to Teacher Quality Partnership Grants

– $5.2 billion for Prevention And Wellness (including diabetes screening and HIV testing)

– $13.9 billion for Pell Grants

– $2 billion for Child Care Development Block Grants

That's what Susan Collins wants to cut out of this bill.

It would be great if we ... you know ... had a newspaper that would provide us with this information.

But hey ...

You know, it's kind of weird that it took me about 5 seconds to find the above information about the specific cuts that Susan Collins has recommended in . The link is thinkprogress.org and talkingpointsmemo.com

The list of cuts Susan Collins has proposed was published yesterday afternoon at 4:45 p.m. at thinkprogress.org

But somehow nobody at the Bangor Daily News was able to find this list of cuts and put them into the story.

But I found them in 5 seconds. Yesterday.

This entire story is basically a press release written by Collins' staff.

“I know it’s unusual to think of senators doing that kind of painstaking, thorough work, but that’s exactly what we’re doing,” said Collins.

Yes, Susan, your only fault is that you are too modest and don't give yourself enough credit.

Kudos to Senator Collins for taking the reigns. Obama planned this excessive wasteful "stimulus" weeks before the election. Yet he still pushes for it and more. Pretty scary stuff, ruling by intimidation.

If you would like to see ALL of the pork removed from this important stimulus package, please call your Senator & Representative today at 1-202-224-3121 (DC switchboard). In addition, since many of these politicians seem to believe our governments should be even larger and more expensive for the taxpayers, please let them know if you would prefer to have private-sector jobs created over a fatter government. It's time for our voices to be heard, and we must stop stealing money from our future generations. All forms of government should be making cuts right now, and not adding more fat for their own benefit.

Gee, as I recall, the Democrats won the election. The private sector has done such a wonderful job of achieving health care for all, building a public-transportation infrastructure, ensuring early childhood development and education, protecting the environment, establishing new and cleaner sources of energy, keeping college loans affordable... in the face of all this success, what can our newly-elected Democratic government possibly do to improve on the Republican paradise George W. and his cronies built over the past eight years? Ignore the results of the elction all you want, but the ground has, indeed, shifted.

DouglasWatts, thanks for that list.

DouglasWatts:

Noble programs, perhaps. But where are the short term jobs that emanate from that list? Collins is remaining focused on the job at hand with one priority: jobs.

Hankwilliams, you may think its the private sectors responsibility to achieve health care for all, building a public-transportation infrastructure, ensuring early childhood development and education, protecting the environment, establishing new and cleaner sources of energy, keeping college loans affordable, but many of us do not. Frankly, I don't think that's the role of government either. That is the fundamental philosophy difference between conservatives and liberals. Both sides have their opinions, and you can debate if that is right or wrong. In addition, please keep in mind that all those republicans opposing this spending bill also won their elections, and are voicing the opposition of those who elected them.

Our national debt is so large, it is irrelevant WHAT this bill comes in at. Who cares? It's all play money, anyway. The Great Depression was caused by government not stimulating the economy - ask any economist. The government insisted on running a balanced budget in a depression. Who's ever heard of one of those? And they got into their mess with fiscal conservatism and spending only what the government took in. Whether more debt is a bad thing is not the right question. The right question is, should we do everything we can think of to stave off economic disaster? Or should we wait and "fine tune" the rescue proposal with input from financial experts like Susan Collins.

Susan Collins is seeking attention. It is certainly different to see her or any other senator 'work', as she says. Just get the job done, Senator, and stop grand standing. If you claim you are working, for a change, let's see some results. Obama made a big mistake when he tried to reach a bipartisan economic solution. He should have rammed it through the Democratic majority. Now, he has Susan Collins, and a host of others, seeking credit for a rescue while the economy burns. Go Susan Go. It's called work.

GIVE EACH TAX PAYER $50,000.00 THAT WILL BOOST THE ECONOMY, THEY WILL PAY THEIR MORGAGE ON TIME AND MABEY BUY A CAR, THIS WOULD GET THE BANKS AND AUTO MAKERS THEIR MONEY AND PUT THE BOOST IN THE ECONOMY. ALSO LIKE JWBOOTH SAID CUT PAYROLL TAXES IN HALF. SIMPLE PLANS DOES NOT TAKE MONTHS TO DEBATE. GET THE JOB DONE ALREADY.

(“I know it’s unusual to think of senators doing that kind of painstaking, thorough work, but that’s exactly what we’re doing,”)

UNUSUAL? Try REFRESHING!!!

Seems like you're finally doing your job. As a Dem who did not vote for either one of you last time, I'm not opposed to bipartisan moderates keeping 'em honest in the White House. While the cuts that are being criticized have merit on their own, they don't belong in this bill.

I'll say it: Good job, Maine Senators.

augustagoverned, It is not play money... and there lies the danger... printing to much money and borrowing money makes the remainder worthless. No one will want it. It will reduce in value then inflation of 20% annual will take off. re: your comment about the depression... you can find plenty of economists on the other side. There are no absolutes in religion and economics.

DouglasWatts ... Many of those programs are worthwhile... but none of them are "stimulus" that create jobs and help business retain people... Those programs need to be dealt with through the normal budget process.

Let's see.... I should be pleased because Sen. Collins is cutting a whopping $50 billion out of a $900,000,000,000.. I don't think so.. The egoistic tenor in the White House seems to have rubbed off.

The country will collapse if we don't' spend, $50 million for the National Endowment for the Arts, $2 million for neon signs in Las Vegas, $4.5 million for an “eco park” featuring butterfly gardens and gopher tortoises in Florida, $886,000 to build a 36-hole “disc golf” course, for frisbee tossing and $500,000 to create a place for dogs to run off the leash in Texas!

Oh the humanity of it all! Obama please save us all!

I see Danby's cartoon today has the Republican driving the tax reform vehicle over the cliff while the Deomcrat sits in the passenger seat. Although you draw figures well, your thought process is bass ackwards. You biased chump!

While the president is seeking bi partisan support, many thinking conservatives and moderates (both Republicans and Democrats) are providing a service by pointing out those items, which while they may be worthy programs, are not "quick" stimuli to the economy. Unfortunately, the Rush Limbaugh wing is using their work to try to stop the stimulus and return to tax cutting policies that have been partially responsible for put us into this mess. The Bush administration gutting of government oversight of business did the rest.

It is time to put away extremism and move toward the middle. If eight years of Bush believing he was morally right about everything has taught us anything, it should be that no one has a handle on the whole truth. And, as Lincoln paraphrased Jesus, "A house divided against itself cannot stand,"

May those elected put aside the hubris of partisanship and once again provide leadership before we become a footnote in history, like the British Empire.

No jobs in what Collins wants to cut? Hello, the teachers at Headstart don't work for free, the counselors that help victims of violence, women or otherwise, don't work for free. Education isn't free. These people who want to cut education funding are the same people that are pushing an un-funded government mandate called No Child Left Behind down our throats. How many other jobs require the training and education that teachers have to have and yet pay them so pathetically? If anyone out there wants to insult the work that a teacher does, don't you dare open your trap until you've spent a week substitute teaching. Do that and then you have the right to complain about teacher pay.

Also, for any of you fake conservatives that keep thinking that Republicans are all about small government, look at the numbers. The governments under republican administrations are ALWAYS larger than one under Democratic administrations. Just look at the size of Clinton's government vs. the size of Bush I or Shrub's governments. The majority of republicans in government are all about looting the coffers, as our former "president" did, letting your rich friends get richer. The numbers don't lie.

I remember Obama saying he was going to go line by line with a scapal through the budget, but it seems to have turned into a butter knife spreading the lard from all the pork. If it doesn't create jobs now it shouldn't be in this bill. If an item is scheduled to begin payouts in 2010 and 2012( hmm election years, how convienent) then it belongs in another bill. There are plenty of deserving items in the bill, but if it isn't stimulus , put it in another bill and see if it passes with being a rider on the tidal wave of lard.

Dear Milomaine,

You have been reading to many back issues of Pravda.

ckc1996, I'm assuming that your last comment was a back-handed way of calling Milomaine a communist, and I know you realize that Russia is no longer a communist country, so your Pravda reference is puzzling.

hankwilliams is right. The democrats DID win the election. We should continue to NATIONALIZE our industries and SOCIALIZE our healthcare system. The only thing then left to do is rename the Democrat party. Suggestions anyone?

Maybe something along the lines of the National Socialists Party.

Why does that photo remind me of either a cigarette or liquor ad?

From where I sit,we are all blaming the wrong people for this BIG mess.Congress spends the money.Bush should have used his veto in the first term.But he and I suspect Obama too,started running for a second term directly after the inauguration.Maybe our presidents should be limited to one six year term.Then the business at hand could be met head on.Politics is corrupt and we are responsible for letting them get away with it.God help us all,especially the next generation or two...who will be footing the bill.....IF WE SURVIVE THAT LONG!!!

1 trillion dollars to "possibly" creater 3 million jobs = $333,333 spent to create each job. Gee, no government waste there is there?

pavance blames "tax cutting policies that have been partially responsible for put us into this mess". Hello???

This "mess" is a direct result of President Clinton's (well intentioned) program of expanding home ownership to people who weren’t financially qualified through massive expansion of Fannie Mae and Freddie Mac. Can you say, “No income verification required”?

Congressman Christopher Shays was the first elected official to sound the warning (in 2002). As late as last fall, Rep Barney Frank and Senator Dodd were denying there was any problem! The huge financial firms, banks, insurance companies and governments that are now bankrupt had one thing in common ----- HUGE stakes in Fannie Mae and Freddie Mac.

Government loan guarantees from Fannie and Freddie built an empire on an unstable mortgage foundation and artificially inflated housing prices. The foundation crumbled and the empire has collapsed.

No one in Washington (or the media) points this out.

Why would any intelligent, informed citizen trust the inept ba$tards in Washington to fix the disaster they deny they created? And their “fix” a TRILLION dollar pork fest!

Inform yourself here! http://www.washingtonian.com/articles/people/8593.html

How about cutting the $5 billion a week for the slaughter of the Iraqis and Afghans.

Maybe to support job growth the Senator could cut her own pay, benefits and those of her co-workers. She could cut some of her staff. When i called her Bangor office to suggest this I was hung up on.

Kate,

I visited her office in Bangor last week. It was a very modest affair with two staff. They field a lot of calls, emails and unannounced visits (like mine) with courtesy and respect.

I’m extremely angry with Congress in general. I frequently find myself in disagreement with Senator Collins on issues. However, I have been very satisfied with the reception, response and follow-up I receive from her staff and particularly when she hears and addresses the concerns people bring to her.

'centralmaine' ---- you offer the truth.

$900 Billion Ponzi Scheme.

I thought we voted for change, not pork barrel politics, tax cheats and free money for the connected.

Where is the leadership??

central Maine, it's the "Democratic" party, you know, as in democratic values, which means that the ballot box, not the bank book, is the source of its legitimacy. Yes, we should socialize health care. We have public schools because we recognize that education is a universal value. It isn't in anybody's interest to have a vast, uneducated underclass. The same is, or should be, true of health care. Public health concerns all of us.

boogyman wrote: "Why does that photo remind me of either a cigarette or liquor ad?"

Because you're an alcoholic smoker? What are you talking about?

Good question, Roberto!

Where is the leadership we had only a few months ago, where our fearless (or was it hapless) leader Dubya kept on saying what he said each and every time he mentioned the economy: "the economy is STRONG."

Wondering where the leadership is a few weeks into the presidency? Obama is telling it like it is. It's just too bad we don't like the sound of it.

What type of leadership would you propose? Maybe Halliburton is hiring?

Give. Me. A. Break.

Back from spitting on the troops passing through BIA so early markko?

She may have office staff of 2 in Bangor kate but how many offices does she have? In this state alone there are 3. I'm not talking about her exclusively, I'm talking all of them. And I'm not talking about canning the $10.00 an hour office staff in Bangor, I'm referring to all the aides and BS jobs they have around the capital.

To much pork has been added to the Stimulus Package. I applaud Senator Collins for attempting to hold the Democrats in check on the amount of money being proposed by Obama. To many social programs have been added to the package that have nothing to do with creating jobs. I find it absolutely disturbing that the Democrats can spend money we do not have and then hold cocktail parties to celebrate.

Here the cuts Susan Collins is pushing, as of noon:

Total Reductions: $80 billion

Eliminations:

Head Start, Education for the Disadvantaged, School improvement, Child Nutrition, Firefighters, Transportation Security Administration, Coast Guard, Prisons, COPS Hiring, Violence Against Women, NASA, NSF, Western Area Power Administration, CDC, Food Stamps

*****************************

Reductions:

Public Transit $3.4 billion, School Construction $60 billion

*****************************

Increases:

Defense operations and procurement, STAG Grants, Brownfields, Additional transportation funding

Public Transit is the best money you can spend. We need to reduce the subsidies to cars and car owners.

Think about it. You rent an apartment. Parking is included in the rent, with no break if you don't use it. You drive to work. There's no charge for your parking space there, either, but employees who don't drive to work don't get a break, either. The car and truck companies aren't paying to fill the potholes in the streets, the government is. That's (gasp!) Socialized Driving.

Building public transit will enable people to get to and from work without owning a car for the express purpose of getting to and from work. These people will then be able to keep more of their money and stimulate other sectors of the economy. Plus people will be put to work and traffic and pollution will be reduced. It's the same principle as weatherizing homes. Spend now, save later, create jobs in the process. If Eisenhower could build the Interstates, Obama can build an effective public transit network. The obstructionis Republic party should get out of his way.

I meant "obstructionist."

I'd like to get in on some of that pork the government has to offer. I'd like to get in line for the handout...I mean bailout. Where do I send my morgage bills and my kids college tuition bills? Hey, why not bail out all the American people, pay off all our bills, and we will go out and stimualte the economy by buying and buying and spending and spending. I like my idea better than theirs.

If this passes in the near future inflation will explode. Or perhaps we'll just become part of China since they own all our debt. There is nothing in this spending bill to encourage businesses that have gone overseas to come back. Nor is there anything in this to help corporations be more competitive int he global market. U.S. businesses have the 2nd largest tax burden in the industrialized world. Also, Obama just needs to shut up!!! Every time he opens his stupid mouth, more workers loose their jobs. This is what we get, for putting a man in office who has never had a real freaking job in his life! Congrats to all you know nothings that put him in office. And by the way, this whole mess started when the Dems took over the Congress,several years ago. Oops, you Obama voters still think it's controlled by Republicans. And while I'm at it, George Bush was no fiscal conservative.

hankwilliams says, "Public Transit is the best money you can spend."

>>He must not know about Amtrack. It loses hundreds of milions of taxpayer dollars every year.

hankwilliams adds fuel to the case that he's an idiot with this gem, "The car and truck companies aren't paying to fill the potholes in the streets, the government is."

>>Uhhh...I can't believe anyone is that numb. Those pot holes are (supposed to be) filled by the 50 cent per gallon tax on gasoline. The roads are in tough shape because 25 cents is lost to government bureaucracy, 20 cents goes to propping up Dirigo "Health Care" leaving a nickle for the much maligned DOT .

Boogyman is right!

That's a picture right out of the "Virginai Slims" era, "You've come a long way baby", and SHE has.

landeinorono,

The reason that few economists are speaking up is because they support the stimulus bill (not each line item but the total size). They agree that at least $800 billion is needed. Those who disagree like Mr. Gross as reported on Bloomberg.com yesterday think trillions are needed.

Our Senator Collins is trying with her 13 friends to prevent the recovery by passing a too small bill. Others of her party are trying to block the bill entirely (Mr. DeMitt). Call Collins and Snowe and ask them to support a stimulus bill of at least $900 billion.

The only think that this bill is going to stimulate is the growth of the government!

commonsense,

See you like to make up things over here too. 2nd highest tax burden LOL. The US until George Bush arrived was judged the most internationally competetive country in the industrialized world. I'm certain that has eroded under George Bush. Problems started when democrats took over congress? Surely you jest. How about you get a job on Comedy Central.

But you are right that the stimulus bill may fuel inflation after we get out of the depression George put us in. That's the point. When in a deflation inflate and when in an inflation deflate. This is the most dangerous economic period in US history (ignoring the funding of the revolution itself). What policy makers will have to do is pass a big enough stimulus bill (this one is half of what will be needed) to jump-start the economy and then after a sustained period of solid and demonstrable economy growth say 2-3 years raise interest rates slowly to cool inflation. Pretty much turning the economy around on a dime. The risk of hyper-inflation in this situation is real. That doesn't mean you don't address the depression and the 11.6 million now unemployed or the 15 million who will be unemployed before the economy bottoms out. Delay now or do nothing and we will be writing about solutions to the depression in 2020.

JWBooth and others,

Payroll tax cuts do not stimulate the economy. People behave rationally and reduce their debt. Debt reduction does nothing to stimulate the economy. No jobs get created. This is a silver bullet notion that doesn't fly.

yes, hankwilliams: The torch has been passed......thankfully.....

JonAlbbrecht---

Thus we address a country in debt by adding more debt ?

Marx had the same idea.

One has to wonder if Obama is over his head after just two weeks on the Presidental job. Maybe he was never told that being President required someome to be a leader. He really hasn't any leadership ability, never held a real job where he had to direct people and be responsible for their outcome. He served as junior State and US Senators where he didn't introduce any legislation and always voted as told to vote if he didn't vote "present". What does a community orgainzer do or lead?

His party runs the House and Senate and all we hear him do is cry that the Repubicans won't back the crummy bailout package that will only increase the size of government. For god-sake Obama..lead and stop crying...wa wa wa wa wa. Your party has the votes to pass the bailout package so get it done and take the credit for it if it suceeds of the blame if it fails. Thats what a real boss does.

You have stopped being Presidental and gone back to being a campaigner. Lead Mr President stop talking about GWBush and Rush Limbaugh. You won as you say, now get over it and lead.

nearbanger I agree with your statement completely. I am dumbfunded how Obama keeps getting a free pass. He is going down a road that will divide the two parties like no other president has ever done. He can not continue to blame the Republicans and Bush. He certainly is only being President to the people who voted for him. Someone needs to remind him over 40 million people didn't vote for him but he still needs to represent us as well. But then again he is a Liberal and Liberals think they know what is best for everyone else anyway.

dear senator collins,

i strongly urge your repudiation and withdrawal of the amendment you are now sponsoring with mr. nelson, the gentleman from nebraska (to the American Recovery and Reinvestment Act) that would cut funding allocated for education

if there is any policy area that should receive consideration and solicitude without regard to partisanship, education is it...

...not to mention that the Act in question promotes JOBS to help resolve this epochal economic crisis!

i appreciate your attention to this request and your concern for our youngsters and the benefits of education to an improved world society

respectfully,

bangeither

maine

7 feb 2009

hankwilliams wrote:

The car and truck companies aren't paying to fill the potholes in the streets, the government is. That's (gasp!) Socialized Driving.

HA HA HA HA HA funny observation -- brilliant even... could it be that humor is the only way out of the quagmire?

Doesn't ANY new $1 injected into the economy act as a stimulus? I believe economists call it "the multiplier effect". But isn't the question really not "Can we stimulate the economy?" (yes); but can we do it in a SUSTAINED fashion so that we aren't right back in this same spot in the future? Sustainable economic stimulation requires, brains, determination, creativity, innovation, entrepreneurship, etc. - money alone, it seems to me, will be about as productive as taking a hit on a bong - may be fun, but no lasting effect. Unfortunately, even the US Senate cannot legislate brains, determination, etc.

NO TO THIS REDICULOUS OVER STATED STIMULOUS GREEDY SPENDING!!!!! VOTE NO...MS COLLINS AND MS SNOWE, MAINERS ARE NOT IMPRESSED WITH THIS SO CALLED PACKAGE. STOP THE BARGAINING! NO TO UNWARRANTED SPENDING ANYWHERE! WE WANT 'CHANGE'.......

PS: WHOSE WRITING THESE PACKAGES TODAY? THE 20 YEAR OLD KIDS REPRESENTING THE CONGRESSIONALS?

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