Progressive Federalism

This week marks the one-year anniversary of the passage of the American Recovery and Reinvestment Act (ARRA).  The annual report by the White House task force monitoring the impact of ARRA funds, led by Vice-President Joe Biden, finds that up to 2.4 million jobs have been created or saved in both the public and private sector as a result of federal recovery efforts. 

How do we know the Recovery Act is working?

Over 70 members of the House of Representatives vociferously opposed ARRA, but returned to their home districts to take credit for job creation, investments in infrastructure and the green economy, and spending on critical community needs.  Many of these same lawmakers requested further federal funds for projects in their states.

In the State of the Union speech, President Barack Obama stated, "...jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill." With the fiscal crisis forcing states to layoff hundreds of thousands of teachers, nurses and police officers, the need for more federal job creation and state fiscal relief support is clear.  And there is substantial momentum building around this issue in the states.

Gridlock.  Slow fulfillment of promises of change in D.C.  A health care bill so compromised that even supporters are unhappy with many details. Frustration with D.C. seemed to be the clearest message from Massachusetts voters on Tuesday. But what can we expect other than gridlock and resistance when a 59-seat super-majority in the U.S. Senate is insufficient to pass serious legislation?  Or when monied interests in D.C. buy off support to block serious reforms on financial regulations, health care and climate change legislation? This is why bold, progressive leadership in the states matters. 

As this Dispatch will highlight, the first step is to fund jobs that support long-term economic competitiveness, notably by investing in people and physical infrastructure.  While the economic climate for profit-making business opportunities is more limited, investments in education, health care, transit and energy efficiency can create immediate jobs while strengthening building blocks for long-term growth.

With the new year, Progressive States Network is working with allies to launch a campaign to demand a new, federal job creation plan that includes fiscal relief to state and local governments in order to foster economic growth and create and maintain jobs. We are asking state legislators to sign onto a letter to promote this job creation plan, the full text of which can be seen at www.progressivestates.org/jobcreation. Legislators can sign the letter at www.progressivestates.org/jobcreation or by emailing jobcreation@progressivestates.org. 

On Tuesday, December 8th, President Barack Obama delivered an address to the Brookings Institution on the need for increased focus on the job crisis that is affecting so many working families across the country. 

Last week marked the 80th anniversary of the stock market crash of 1929.  While parallels can be drawn between the Great Depression and the lingering repercussions of the most recent recession -- high unemployment and foreclosure rates, steep decline in tax revenue, and the need for massive government spending -- the United States posted positive economic growth in the third quarter of 2009.  The Bureau of Economic Analysis (BEA) released an advance estimate last Thursday, reporting that in the third quarter, real gross domestic product (GDP) increased 3.5%

The Agency on Health Research and Quality (AHRQ) is accepting Letters of Intent until November 18, 2009, for grants of up to $1.5 million that can be used to create an academic detailing initiative.  States are establishing "academic detailing" initiatives, or “Prescriber Education Programs”,  to help physicians stay on top of the latest scientific information about drug quality and effectiveness and to reduce the industry’s influence over physicians' prescribing decisions.  The ARRA funds are available for academic detailing as part of comparative effectiveness research initiatives.

In his major stimulus speech in January, President Barack Obama stated, "I am confident [the stimulus] will save or create at least three million jobs over the next few years."  In particular, he emphasized that state fiscal relief "will save the public sector jobs of teachers, cops, firefighters and others who provide vital services."