The numbers say it all. Alaska's highest jobless rate in four years. Nearly 28,000 Alaskans out of work.
Nationally, 3.6 million jobs lost, with half of those just in the past three months. Absent swift action, economists predict another 5 million jobs could be lost this year alone.
Without question America and Alaska are facing some of the most dire economic conditions since the Great Depression. That's why I spent much of my first month as Alaska's new U.S. senator helping craft an economic recovery package to get our state and country back on the road to long-term competitiveness and prosperity.
The American Recovery and Reinvestment Act, already signed into law by President Obama, is designed to protect or create 3.5 million good-paying jobs over the next two years, 90 percent of them in the private sector. It will help rebuild our nation's deteriorating roads and public facilities, train our citizens for future jobs and extend the safety net to the most vulnerable.
Normally I would agree with most of the e-mails and callers to my office who object to such large government involvement in the economy. As a lifelong small businessman, I've always believed government's role is to build the foundation of roads and utilities to attract private sector development, and then get out of the way.
But these are hardly normal times.
During the campaign for the Senate, I listened to thousands of Alaskans having trouble making ends meet as a result of skyrocketing energy prices, the plunging value of their savings and shrinking job prospects. And that was before the massive international economic crash of the past few months.
Rather than simply saying "no" -- the easy and politically popular course -- I rolled up my sleeves to make the economic recovery bill better for Alaska. I worked with a coalition of moderate senators from both parties to cut more than $100 billion from earlier versions of the package.
The result is still larger than I would have liked, but the benefits for Alaskan families and our economy are huge. A projected 8,000 jobs saved or created in Alaska over the next two years. A nearly $1 billion economic shot in the arm to our economy. Funding for roads, education, benefits for veterans, cutting-edge technologies.
An enormous but often-overlooked benefit of the Recovery Act is significant tax cuts, with 40 percent of the package giving direct tax relief to working and middle class families. An estimated 220,000 Alaskan workers and families will see tax cuts up to $800. Other provisions suspend taxes on unemployment payments under $2,400, extend tax breaks for capital investments and permit sales tax deductions for vehicle purchases.
When it comes to investments in infrastructure, energy and new technologies, Alaska does very well: $48 million for mass transit, which can help reduce commuting costs between Anchorage and the Mat-Su; $44 million for clean water improvements in rural Alaska; and $11 million to help weatherize Alaska homes, among other benefits.
One of the most important investments economists say will help stimulate the economy is assistance for education and training. The act extends college tax credits to 7,000 additional Alaska families, funds modernizing 28 Alaska schools and supplements Head Start, the successful early education program which is sorely under-funded in our state.
Another vital part of the Recovery Act is improving the safety net for Americans least able to make ends meet. I worked especially hard to expand veterans' benefits, including incentives to hire unemployed veterans and make essential improvements to medical facilities used by our veterans. The package also contains an estimated $220 million over the next two-plus years for Medicaid, the program that covers basic medical care for low income and disadvantaged Alaskans.
During the three weeks of congressional debate on the Recovery Act, I was especially struck by the contrast between some politicians at the state level and local community leaders. Scores of local government and school district officials and university and veterans group representatives pressed hard for more funding to improve local roads, school, education and health care.
Ironically, some state officials have threatened to reject elements of the recovery package, at the same time Alaska faces a deficit of more than $1 billion. It is in Alaskans' best interest to put politics aside and move forward. Much-needed dollars soon will begin flowing to the states.
Let's focus now on getting Americans back to work, giving families tax relief and protecting vulnerable Alaskans in this time of uncertainty.
Democrat Mark Begich is the junior U.S. Senator from Alaska.
By SEN. MARK BEGICH