The Recovery Act

in Michigan

June 2009

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 2

The American Recovery and The American Recovery and Reinvestment Act (ARRA) of 2009Reinvestment Act (ARRA) of 2009

• President Obama signs the Recovery Act on February 17, 2009

• The largest investment in America’s infrastructure in 50 years

• The most significant expansion in tax cuts for low and moderate income households ever

• It aligns perfectly with Michigan’s economic plan to diversify our economy, train our citizens and protect our families

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 3

Visit michigan.gov/recovery often for grant applications and the latest updates!

• Through existing programs

• In competitive grants

• In tax cuts

How Are the Funds Flowing to Michigan?How Are the Funds Flowing to Michigan?

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 4

How much will Michigan receive?How much will Michigan receive?

• Total minimum estimated benefit for Michigan: $18 billion

• Funding available for existing programs: more than $7 billion

• Will create or save 109,000 jobs over the next two years

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 5

Financial Help for FamiliesFinancial Help for Families

• $400 tax cut for workersearning less than $75,000

• Expanded Earned Income Tax credit

• $1,000 per-child tax credit available to more families

• $250 payment to seniors and people with disabilities

• First-time Home Buyer Tax Credit increased to $8,000

• American Opportunity Tax Credit – up to $2,500 of college expenses now tax deductible

• Pell Grants – maximum award for low income students will increase from $4,850 to $5,350 this fall

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 6

Help for Unemployed WorkersHelp for Unemployed Workers

• Unemployment eligibility extended by up to 20 weeks (maximum of 79 weeks)

• $25 per week increase in unemployment benefits

• First $2,400 in unemployment benefits exempt from income tax

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 7

Funding For Education & Training Funding For Education & Training

• More than $2.2 billion for Michigan schools– Special education– Programs for at-risk students– Mitigating budget cuts – Head Start and Early Head Start

• No Worker Left Behind – $182 million expanded job training, including summer youth employment– More than $1,000,000 available to tribes through WIA

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 8

Help for Citizens in NeedHelp for Citizens in Need

• Increased Food Assistance -helping more than 1.3 million Michigan citizens

• $36.8 million for local community service providers to help families in poverty; more than $200,000 to tribes

• $4.2 million to provide housing services for tribal members

• $390,000 for expanded child care services for tribal members

• $95,000 for senior nutrition services for tribal members

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 9

Saving Energy & Creating JobsSaving Energy & Creating Jobs

• Weatherization Assistance – a family of four making less than $44,000 can receive up to $6,500 for upgrades to save money on energy – $243 million for Michigan; 30,000 homes

• Energy Efficient Improvement Tax Credits – maximum credit tripled to $1,500

• Energy Efficient Conservation Block Grant – to improve energy efficiency of public buildings– almost $1.4M for tribes

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 10

Providing Health CareProviding Health Care

• Pays for 65% of continued health coverage for citizens who have lost their jobs (COBRA)

• Significant Medicaid funding boost– 1.6 million Michigan citizens rely on Medicaid health coverage

• Over $9 million for health clinics and $6.4 million for hospitals that serve large numbers of low-income patients

• $2.2M for Indian Health Services in Michigan

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 11

Investing in Public SafetyInvesting in Public Safety

• $67 million to expand public safety services

• $6 million to help rural communities upgrade or purchase public safety equipment

• $4.5 million for child support enforcement in Michigan

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 12

Roads & InfrastructureRoads & Infrastructure

• $873 million for road & bridge projects, creating 25,000 jobs

• Over 843 lane miles will see improvements

• $135 million for public transit

• $142 million for road and bridge maintenance on tribal lands across the country.

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 13

And that’s just the beginning …And that’s just the beginning …

Through competitive grants, we can create additional jobs and provide additional help to citizens in need …

• High Speed Rail• Broadband• Advanced Battery Technology• Community Priorities

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 14

Competitive Grants are available … Competitive Grants are available …

• Tribal Transit Grants– Funds for public transportation capital projects or operations

• USDA Rural Housing Preservation Grants– Funds to address vacant or foreclosed properties to stabilize

communities

• Indian Community Development Block Grant Program– expand quality housing and economic opportunities for low-

income citizens

• Strengthening Communities Fund– Help local communities, non-profits or tribes build capacity to

better serve citizens in need

• Early Head Start– Funds to expand early childhood education services

Michigan Recovery and Reinvestment Plan • http://michigan.gov/recovery 15

Learn More …Learn More …

• State of Michigan Recovery Portal:http://michigan.gov/recovery

• White House Recovery Portal: http://recovery.gov