HARRISBURG, Pa. (WHTM) — Nearly 2 trillion dollars will be pushed out from Washington, D.C. to the states as part of the American Rescue Plan. So how much is Pennsylvania getting?
Matthew Knittel says, “we’re projecting about 56 billion dollars to be injected into the state economy through the new federal stimulus.”
Knittel, the director of the Pa. non-partisan Independent Fiscal Office, crunched the numbers and expects 18 billion dollars in direct aid to the state, nine billion more to local governments, and with very few strings attached.
“The only things they can’t be used for is to reduce taxes or pension obligations,” Matthew said.
Republicans complained the rescue plan is too generous and unnecessary. Knittel said because of previous federal stimulus, the state is running a 600-million-dollar surplus. And the plan will rescue higher than average earners.
Knittel goes on to say, if you’re making $150,000 and have three kids, you’re getting a $7,000 impact payment.
But the pandemic has had a negative impact on the economy. The Independent Fiscal Office estimates 472-thousand jobs are lost and many won’t return.
The IFO says if not for the federal stimulus the state was a year away from a 2.5-billion-dollar deficit.