Political Capitol

On Friday retiring Democratic U.S. Sen. Chris Dodd announced Connecticut will receive $110.5 million from the federal government to save an estimated 1,500 teaching jobs.

“Not only will this critical funding help save 1,500 jobs, but keeping our teachers in the classroom will provide our deserving children with a first-rate education to better prepare them for future success,” Dodd said at the time.

The money comes from the $26 million emergency spending bill Congress passed in August – the same bill that was panned by Republicans as a hand-out to unions.

But late yesterday retiring Republican Gov. M. Jodi Rell in a press release hailed the grants as “relief for local school districts who have been struggling through the recession with limited resources. They have had to make extremely difficult choices that included cutting teaching and other staff jobs. These funds will help restore and save (those jobs) and put the focus where it belongs – in the classroom and on our children.”

I asked the two major candidates for Dodd’s seat – Republican Linda McMahon and Democrat Richard Blumenthal – to respond. Both have been critical of previous federal stimulus efforts while at the same time promising to help create jobs and rebuild the economy if elected.

Blumenthal’s campaign told me the candidate supported passage of the $26 million package, but added ”he still believes the stimulus was poorly structured and failed to do enough to create jobs and put paychecks in people’s pockets.”

McMahon, who made her first real foray into public life in early 2009 when Rell nominated her to the state Board of Education, complained the money for teachers adds to the national debt.

“It’s not paid for and Linda is opposed to any new spending that isn’t paid for,” Ed Patru, her campaign spokesman, said. “The Democrats have already acknowledged they have no intention of cutting food stamps, which is how they proposed to pay for it. The states are cash-strapped, but so is the federal government … The politicians who continue to support spending on programs that aren’t paid for are pandering for votes, and Linda thinks it’s time we start treating voters like adults.”

McMahon resigned from her school board seat in April, citing a newly recognized conflict with her Senate candidacy, which she launched last September.

UPDATE: Marla Romash, an advisor to the Blumenthal campaign, just e-mailed the following:

The Congressional Budget Office (CBO), the Non-partisan Agency that Analyzes the Costs of Every Bill, Indicated the Emergency Bill would reduce the Federal Deficit by $1.37 billion over the Next Ten Years. CBO “scored” the legislation as reducing the deficit by $1.371 billion over the next ten years. [CBO, 08/04/2010].

The New York Times noted that the Bill to Save Hundreds of Thousands of Jobs was Fully Paid For. After the Senate passed the bill that was ultimately passed by the house, the New York indicated that “[t]he cost of the Senate bill is fully paid with other spending cuts and a provision to close a tax loophole.” [NY Times, 08/04/2010].

The Washington Post also noted that the Bill is Fully Paid For. “They also had to cover the cost of the measure so that it would not increase future deficits. The bill includes nearly $10 billion in new taxes on U.S. multinational corporations that do business abroad, and it rescinds after 2014 an increase in food stamp payments enacted in last year’s $862 billion stimulus package.” [Washington Post, 08/11/2010]

“Politifact” – the Non-partisan Fact-Checking Organization – Verified that the Bill is Fully Paid For, Reducing the Deficit by $1.37 billion. “Specifically, between 2010 and 2019, the bill is estimated to actually reduce the deficit by $3 million. When you add in an additional year — making the budget window 2010 to 2020 — the bill would reduce the deficit by $1.371 billion or, rounded up, the $1.4 billion that the Speaker’s release refers to.” [Politifact, 08/10/2010].

Congress Made Tough Choices to Ensure That the Bill would Save 150,000 jobs and Still Be Fully Paid For. While the bill is expected to raise 150,000 jobs, “Democrats were forced to make cuts to ensure the bill doesn’t add to the deficit. The measure clamps down on what Democrats call the abuse of tax credits for multinational corporations intended to ensure income earned abroad isn’t taxed twice, by both the U.S. Treasury and a foreign government.“ [Bloomberg, 08/10/2010].

The bill was fully paid for by closing tax loopholes and cutting some already paid for stimulus funding. “Supporters say the bill will not add to the deficit because it is paid for by closing tax loopholes, eliminating advance refunds on the earned income tax credit and ending stimulus funds for food stamps earlier than expected.” [Reuters, 08/04/2010].