Memo re: President Obama Signing the American Recovery and Reinvestment Act, 2/17/09

Governor Arnold Schwarzenegger’s Special Advisor for Jobs and Economic Growth David Crane issued the following memo on President Obama today signing the American Recovery and Reinvestment Act:

MEMO

TO: Concerned Parties
FROM: David Crane, Special Advisor for Jobs and Economic Growth, Office of Governor Schwarzenegger
DATED: February 17, 2009

RE: American Recovery and Reinvestment Act

“The federal Economic Stimulus Package signed today by President Obama represents the potential of roughly $80 billion in benefit to our state in the forms of tax relief, expenditures and investments.

“$80 billion represents about five percent of our state’s economy. We are encouraged by the quick action taken by the Congress and the President to stimulate economic growth and to do so in a manner which hopefully will not only boost employment in the short term but also establish a firmer foundation for sustainable long term economic growth.  However, for this to succeed in truly stimulating our economy and creating jobs, and for our economy to continue to grow, we also need to address the foreclosure crisis and to re-establish a stable financial system. On that note, California remains keenly attentive to President Obama’s speech tomorrow in Phoenix regarding the foreclosure crisis and to details of Secretary Geithner’s financial stability plan.

“Of the $80 billion, we estimate that about $45 billion will come to California in the form of expenditures for education, health care, infrastructure, and unemployment benefits. A third of that will be awarded on a competitive basis. For now we assume we will receive a share of that funding proportionate to our share of U.S. population, but because so much of that money is for programs that are directly in California’s wheelhouse – such as energy efficiency programs, infrastructure projects and high-speed rail – it is possible we will fare better and earn a greater share of those awards.

“In coming days, we will be putting together a plan to put our share of the stimulus plan to use, and will take steps to guarantee accountability that the funds received by the state are used appropriately and in ways that will be most beneficial to the state and create the most jobs.”