State Economic Stimulus Plans
Updated August 1, 2009
A number of states have proposed state-level stimulus plans in response to the current economic recession. Public spending on infrastructure projects is perhaps the most common component of state stimulus plans. Other elements include small business development, increased capital in local financial markets, job creation incentives, and investments in green energy and health technology.
The following chart shows stimulus plan details for 18 states. Investment proposals (which includes programs still being considered, as well as those that have already been enacted or failed) from these selected states add up to around $39 billion.
Stimulus plans have already been authorized in at least eleven states (Alabama, Arizona, Colorado, Florida, Illinois, Iowa, New Jersey, North Carolina, Ohio, Oregon, and Virginia). Together, these programs add up to nearly $35 billion in spending, tax incentives and lending.
Stimulus plans adding up to $2.5 billion have failed in at least four states (Alabama, Georgia, Indiana, and Montana). Proposals from at least four states (Minnesota, Rhode Island, Vermont, and Washington) have yet to be acted on. They combine for $1.6 billion.
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State
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Stimulus Plans
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Proposed Amount
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Alabama
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Enacted: Senate Bill 367 dedicates $6 million from the state's oil and gas royalties trust fund to a mortgage guarantee fund. In hopes of stimulating the state's housing market, the fund is to be used to reimburse investors suffering foreclosure losses on loans.
Failed: Alabama's legislature rejected a stimulus bill (Senate Bill 163) to invest $1 billion in infrastructure over a period of ten years. Funds for infrastructure projects would come from yearly withdrawals of $100 million from the state's oil and gas royalties trust fund.
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Enacted:
$6 million
in spending
Failed:
$1 billion in spending
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Arizona
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Enacted: In response to current fiscal conditions, Arizona's stimulus plan focuses on tax incentives, rather than public works projects. Senate Bill 1403 (signed July 10, 2009) creates individual and corporate income tax credits for "new and expanded investment in renewable energy operations."
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$70 million
in tax credits
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Colorado
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Enacted: Legislation authorizing the various pieces of Colorado's stimulus plan was signed in May, 2009. The plan includes encouraging private lending to small businesses and providing tax credits for job creation. The commitment of public funds to the loan program is expected to leverage more than $50 million in private financing. Tax credits will be provided to firms creating and maintaining a specified number of jobs for one year.
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$50 million
in business loans
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Florida
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Enacted: The main component of Florida's stimulus program is loans to small businesses. Businesses with 10 to 99 employees can be eligible for 2 percent interest rate loans of up to $250,000 to be used in expansion of their enterprise. This could include capital purchases, employee training and salaries for new positions. The stimulus plan also includes regulatory reform as state agencies are directed to identify "burdensome regulation and barriers to job creation."
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$10 million
in loans and support services for businesses
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Georgia
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Failed: House Bill 481, "The Jobs, Opportunity, and Business Success Act," would provide a number of business tax reductions and incentives. These include: the suspension of filing fees, providing tax credits of $2,400 to companies for each unemployed person meeting certain conditions hired, reductions in sales taxes and capital gains tax rates, and the elimination of the corporate net worth tax. The governor vetoed the bill on May 11, 20009 citing current and projected fiscal difficulties.
Enacted: House Bill 482, signed May 4, 2009, repeals the state's business inventory tax.
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Not Available
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Illinois
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Enacted: Legislation authorizing the capital construction plan "Illinois Jobs Now!" was signed July 13, 2009. Projects include improvements to "roads, bridges, transportation networks, schools and communities." Green projects include weatherization works, water improvement and high speed rail efforts. The state estimates the plan will create 439,000 jobs in the next six years.
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$31 billion
in spending
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Indiana
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Failed: House Bill 1656 would redirect $500 million of federal highway funds and $1.5 billion from leasing the Indiana Toll Road to local infrastructure projects. The proposal also clarifies that the legislature, not the governor, is to distribute future federal stimulus funds.
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$1.5 billion
in spending
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Iowa
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Enacted: Legislation to create the "I-JOBS" bonding program was signed by the governor on May 14, 2009. Senate File 376 and Senate File 477 allow the state to borrow up to $830 million to be used in flood repair and infrastructure investment.
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$830 million
in spending
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Minnesota
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Proposed: The governor's proposed "Jobs Recovery Act" is focused on tax incentives to encourage business investment. Part of the proposed plan is a gradual reduction in the state's corporate income tax from its current rate of 9.8 percent to 4.8 percent.
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Not Available
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Montana
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Failed: Senate Bill 503, "The Montana Stimulus Act," would stimulate the economy through tax incentives for capital investments and job creation by businesses. The governor vetoed the bill.
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New Jersey
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Enacted: New Jersey's stimulus plan, "Invest NJ," includes capital investment grants ($70 million), and grants and tax incentives for small business to hire and expand ($50 million). Small businesses that hire and retain a new employee for at least one year are eligible for grants of $3,000 per position. In addition to the grants, small businesses may be eligible for sales tax credits for capital investments over $5,000.
Enacted: The "New Jersey Economic Stimulus Act of 2009," Assembly Bill 4048, was signed July 27, 2009. The legislation provides tax incentives to developers.
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$120 million
in grants
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North Carolina
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Enacted: North Carolina's state stimulus plan "fast-tracks" funds to construction projects at state education and corrections facilities. The state estimates the projects will generate up to 26,000 jobs.
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$744 million
in spending
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Ohio
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Enacted: Ohio's $1.57 billion stimulus plan focuses on investment in public works projects. The enabling legislation for the program was signed in June 2008.
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$1.57 billion
in spending
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Oregon
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Enacted: The "Go Oregon" state stimulus plan was signed February 5, 2009. The legislation, Senate Bill 338, authorizes the state to issue bonds for $175 million to be spent on construction and capital renovation projects. Projects at universities and community colleges comprise most of the spending.
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$175 million
in spending
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Rhode Island
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Proposed: Rhode Island's state stimulus plan would increase the amount of money available in the state for small business loans. Much of the capital in the plan is from commitments from top banks in the state to dedicate $165 million for loans to small businesses. The remaining amount would come from state funds and the Business Development Company of Rhode Island.
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$200 million
in capital for business loans
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Virginia
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Enacted: Virginia's House Bill 2583, signed March 30, 2009, will speed up construction projects at state universities by providing $230 million to fund project planning and execution. The legislation also increases capital in local banks by requiring that 10 percent of state revenue holdings be kept on deposit in Virginia banks.
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$230 million
in spending
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Vermont
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Proposed: The House speaker has proposed a $150 million stimulus plan for construction and repair of state transportation infrastructure. Most of the funds, $120 million, would be used to repair roads and bridges.
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$150 million
in spending
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Washington
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Proposed: Washington's legislature and governor have proposed different state stimulus plans. Senate plans focus on job creation in "green" industries, health, and construction. The governor's plans would focus on construction, mostly on roads and projects at universities, and business tax breaks. Both plans include changes to unemployment benefits.
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$1.2 billion
in spending
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Selected States Total
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$38.86 billion
in spending, loans for businesses, and tax cuts
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Source: Various media and government reports, 2009
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For additions or corrections to this information please contact Ian Pulsipher.
Updated August 1, 2009
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