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Cuts to Senate Recovery Bill Mean Fewer Jobs in States

SOURCE: AP/J. Scott Applewhite

Senate Minority Leader Mitch McConnell (R-KY) walks through the Capitol on the way to a news conference as work on the economic stimulus bill continues.

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The Senate compromise legislation is a stumble backward from the legislation passed by the House of Representatives on January 28. The compromise would create between 430,000 and 538,000 fewer jobs than the House-passed bill—a finding consistent with what other economists, including Paul Krugman, reported over the weekend.

Ben Nelson said on Saturday that the compromise “pares back $110 billion of spending that didn’t belong in the bill. We’ve trimmed the fat, fried the bacon, and milked the sacred cows.” In fact, the Senate cuts will reduce the stimulative nature of the act. The $40 billion cut from the Senate bill for state fiscal stabilization funds will mean that roughly 182,000 fewer jobs are created or saved as education and other public services are rolled back. Slashing the entire $19.5 billion school and higher education construction program will mean that, compared to the House bill, approximately 104,000 fewer jobs will be created or saved. Much of this burden will fall on women.

Cuts to Senate Recovery Bill Mean Fewer Jobs Created and Saved

State Fewer jobs due to Senate cuts
Alabama 8,420 – 10,002 fewer jobs
Alaska 1,552 – 1,848
Arizona 10,211 – 12,376
Arkansas 4,457 – 5,449
California 50,095 – 63,294
Colorado 5,894 – 7,482
Connecticut 2,116 – 3,465
Delaware 1,434 – 1,747
District of Columbia 1,875 – 2,153
Florida 29,607 – 35,706
Georgia 16,724 – 19,988
Hawaii 2,174 – 2,639
Idaho 2,273 – 2,790
Illinois 19,284 – 23,866
Indiana 10,177 – 12,436
Iowa 3,537 – 4,563
Kansas 3,148 – 4,089
Kentucky 6,616 – 8,094
Louisiana 7,665 – 9,236
Maine 1,831 – 2,316
Maryland 3,980 – 5,949
Massachusetts 4,522 – 6,989
Michigan 18,249 – 21,887
Minnesota 6,055 – 7,942
Mississippi 5,715 – 6,754
Missouri 9,145 – 11,246
Montana 1,615 – 1,969
Nebraska 1,931 – 2,543
Nevada 4,460 – 5,330
New Hampshire 956 – 1,408
New Jersey 6,146 – 9,557
New Mexico 3,162 – 3,862
New York 30,671 – 38,644
North Carolina 13,937 – 17,207
North Dakota 1,047 – 1,295
Ohio 16,961 – 21,026
Oklahoma 5,465 – 6,695
Oregon 5,020 – 6,355
Pennsylvania 15,687 – 20,282
Rhode Island 1,908 – 2,354
South Carolina 7,225 – 8,785
South Dakota 1,273 – 1,557
Tennessee 1,0415 – 12,543
Texas 35,127 – 43,225
Utah 3,447 – 4,301
Vermont 968 – 1,218
Virginia 6,723 – 9,287
Washington 8,732 – 10,962
West Virginia 3,014 – 3,664
Wisconsin 6,232 – 8,177
Wyoming 914 – 1,122

Looking at how the Senate cuts affect states shows that 13 states will lose more than 10,000 jobs if the Senate compromise prevails instead of the House act. Texas, which lost 43,000 jobs in December alone, will see between 35,000 and 43,000 fewer jobs created or saved as a result of the Senate compromise. The range is based on the Congressional Budget Office’s low and high estimates of different multipliers for different lines in the recovery act.

More on the Recovery and Reinvestment Act:

Column: A Step Forward, a Stumble Back

Background brief: Recovery and Reinvestment 101

Interactive Maps: Recovery Beyond the Beltway

Infographic: The Stimulus: Four Reasons We Can’t Afford Not to Have One

Interactive: Design Your Own Stimulus Package

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