Pawlenty, Clark react to passage of $26.1 billion state aid bill

The U.S. House of Representatives, reconvened for an emergency vote, passed a $26.1 billion bill providing aid to cash-strapped state governments. The revenue-neutral bill provides $16.1 billion in Medicaid funding and $10 billion to help states keep teachers on the payroll. Minnesota’s delegates split along party lines on the 247-to-161 vote, with Democrats supporting the bill. The news brought quick responses from two Minnesota politicians — Tarryl Clark, who chided Rep. Michele Bachmann for her no vote, and Gov. Tim Pawlenty who derided Congress’ “reckless spending.”

As Annie Lowrey at the Washington Independent explains, the bill is revenue-neutral and will save around 161,000 teachers’ jobs:

The House estimates that the bill will save approximately 161,000 jobs by providing states funding for teachers’ salaries. And the Economic Policy Institute estimates that the Medicaid funding will save a further 158,000 jobs. (States might not have cut Medicaid, which offers health care coverage to impoverished Americans. But they would have made up the shortfall by firing other workers, like firefighters, and cutting contracts, leading to job losses in the private sector.) Even with the funds — less than half of what the White House requested just a few months ago — local governments will likely still shed jobs in the coming year. Last month alone, states cut 48,000 payroll positions.

Republicans on the Ways and Means Committee countered that the tax hikes contained in the bill would cause the economy to shed an additional 141,000 jobs.

To pay for the bill — Republicans refused to cross the aisle unless the bill was entirely deficit-neutral — the Senate resorted to some controversial cuts. It closed a tax loophole for companies shipping jobs overseas, saving $9 billion. It also rescinded unspent funds from a variety of programs. Then, most controversially, it took $12 billion from future Supplemental Nutrition Assistance Program, or food stamps, funding. Senate aides stress that the cut does not cut the benefits authorized in the most recent Farm Bill. It takes from expanded benefits created in the $787 billion American Recovery and Reinvestment Act, the Feb. 2009 stimulus.

Pawlenty’s office sent a two-sentence statement on the bill’s passage:

“The federal government should not deficit spend to bail out states and special interest groups. Minnesota balanced its budget without raising taxes and without relying on more federal money. The federal government’s reckless spending spree must come to an end. “

Clark’s campaign expressed chagrin that Bachmann voted against the job-saving bill, noting that “Bachmann decried the increased spending — ignoring the fact that the bill is entirely paid for.” It released a statement that read, in part:

“Let’s be honest about real costs and real responsibilities. This bill is entirely paid for by closing tax loopholes and cutting the budget. It doesn’t contribute a single penny to the deficit, and Congresswoman Bachmann knows it,” said Zach Rodvold, Campaign Manager for Tarryl Clark’s campaign for Congress. “The Congresswoman needs to look voters in the eye and accurately explain her vote against police officers, teachers and fire fighters across her district.”

“Tarryl Clark believes that our children should be a top priority: that they should have highly-qualified teachers that are not over-burdened. She wants our communities to be safe, so she supports keeping police and fire fighters on the job.” Rodvold concluded, “We know that Tarryl Clark’s priorities are safe communities and well-educated children. What are Congresswoman Bachmann’s priorities?”