State Economic Stimulus Plans

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. 

Last Updated March 25, 2010

State

Stimulus Plans

Proposed Amount

Alabama

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. Enacted April 14, 2009.

Failed: Alabama's legislature rejected a stimulus bill (Senate Bill 163) to invest $1 billion in infrastructure over a period of 10 years. Funds for infrastructure projects would come from yearly withdrawals of $100 million from the state's oil and gas royalties trust fund.

$6 million
in spending

$1 billion
in spending

Arizona

 

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."

$70 million
in tax credits

Colorado

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.

$50 million
in business loans

Florida

 

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 to expand 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."

$10 million
in loans and support services for businesses

Georgia

Failed: House Bill 481, "The Jobs, Opportunity, and Business Success Act," would have provided several business tax reductions and incentives. These included: the suspension of filing fees, providing tax credits of $2,400 to companies for hiring each unemployed person meeting certain conditions, 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, 2009, citing current and projected fiscal difficulties.

Enacted: House Bill 482, signed May 4, 2009, repeals the state's business inventory tax.

Not Available

Illinois

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.

$31 billion
in spending

Indiana

 

Failed: House Bill 1656 would have redirected $500 million of federal highway funds and $1.5 billion from leasing the Indiana Toll Road to local infrastructure projects. The proposal also clarified that the legislature, not the governor, would distribute future federal stimulus funds.

$1.5 billion
in spending

Iowa

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 for flood repair and infrastructure investment.

$830 million
in spending

Minnesota

Failed: The governor proposed a "Jobs Recovery Act" focused on tax incentives to encourage business investment. The plan included a gradual reduction in the state's corporate income tax from its current rate of 9.8 percent to 4.8 percent.

Not Available

Montana

Failed: Senate Bill 503, "The Montana Stimulus Act," would have provided  tax incentives for capital investments and job creation by businesses. The governor vetoed the bill.

 

New Jersey

Enacted: New Jersey's stimulus plan, "Invest NJ," includes capital investment grants ($70 million), and grants and tax incentives for small businesses 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.

$120 million
in grants

North Carolina

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.

$744 million
in spending

Ohio

 

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.

$1.57 billion
in spending

Oregon

Enacted: The "Go Oregon" state stimulus plan was signed Feb. 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.

$175 million
in spending

Rhode Island

Failed: Rhode Island's state stimulus plan would have increased the amount of money available in the state for small business loans. Much of the capital in the plan was from commitments from top banks in the state to dedicate $165 million for loans to small businesses. The remaining amount would have come from state funds and the Business Development Company of Rhode Island.

$200 million
in capital for business loans

Virginia

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.

$230 million
in spending

Vermont

Enacted: Vermont’s House Bill 438, enacted May 29, 2009, allows the state treasurer to issue up to $100 million in tax-exempt transportation infrastructure bonds (TIBs) for funding the rehabilitation, reconstruction, or replacement of state and municipal bridges and culverts, and state roads, railroads, airports.

$100 million
in spending over fiscal years 2011-2013.

Washington

Enacted: Washington’s House Bill 1906, signed April 6, 2009, temporarily increases the weekly benefit amount for unemployed workers by $45 per week.

Enacted: Washington’s Senate Bill 5921, signed May 4, 2009, creates a clean energy leadership initiative in collaboration with a statewide, public-private alliance focused specifically on growing the clean energy technology sector in Washington state.

Not Available

 

Source: Various media and government reports, 2009 - 2010

For additions or corrections to this information please contact econ-info@ncsl.org.

Updated March 25, 2010