The $26 billion jobs bill signed by President Obama Tuesday addresses key economic concerns for Maine and states across the nation.
It provides $10 billion to school districts for teachers’ salaries, reducing the pressure for layoffs before the start off the school year. It also distributes an additional $16 billion in Medicaid funds, bolstering state budgets.
Both forms of aid are welcome in Maine, and the measure was passed in an emergency House session Tuesday, with the support of Democratic Reps. Chellie Pingree and Mike Michaud. Senators Susan Collins and Olympia Snowe cast the only Republican votes in favor of the bill when it passed in the Senate last week.
Although Republicans have complained bitterly about its cost, the aid is expected to be fully paid for, in part by raising more tax revenue from corporations.
The legislation was praised by Democrats for closing loopholes that encourage corporations to ship jobs and profits overseas. These tax credits and other provisions were intended to bolster U.S. competitiveness, but often work against the interests of most Americans.
Revising these rules may impose difficulties for firms with ambitions abroad, but support for state government and education has to be the top priority in a time of hardship. The education funding alone is expected to save more than 160,000 teaching jobs, 700 of them in Maine.
Maine is also expecting about $77 million in additional Medicaid funds. Gov. John Baldacci said the funds will help thousands in need and praised the bipartisan work of Maine’s congressional delegation to preserve an essential safety net.
It’s true such spending has not brought back the jobs and prosperity we once enjoyed, but without it, today’s economic landscape would be much grimmer.
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