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Snowe, Collins defend early support of stimulus

By SETH McLAUGHLIN Special to MaineToday Media

WASHINGTON — Maine's two Republican senators, who broke with their party a year ago to support the federal stimulus bill, do not regret their vote.

But, they say, the plan was and remains far from perfect.

"It was a necessity given the fact that it was at the precipice of the potential collapse in our economy," U.S. Sen. Olympia Snowe said. "Would I have done it differently? Would I have wanted a different package if I had my choices? Absolutely. But I think at that moment in time it was essential to do something on behalf of the state and on behalf of the country."

U.S. Sen. Susan Collins said the $787 billion American Recovery and Reinvestment Act was a "compromise that has provided tax relief for low- and middle-income families and for small businesses, robust infrastructure spending and significant funding for states for education and health care programs."

"Although far from perfect, the Recovery Act has provided important tax relief, helped to create and save jobs, and it responded to our nation's dire economic crisis – the worst since the Great Depression," she said.

Snowe and Collins were labeled turncoats by conservative Republicans last year after they provided Democrats crucial support in the stimulus debate.

Only three Republicans supported the bill. The other, U.S. Sen. Arlen Specter of Pennsylvania, has since switched parties.

U.S. Reps. Michael Michaud and Chellie Pingree, both Democrats, also supported the bill. They said Tuesday that more still needs to be done to create a better climate for small business and job growth.

Over the past year, many Republicans have criticized the stimulus because they say it includes wasteful spending and has had a lackluster impact on job creation.

But Collins defended her vote Tuesday, saying Maine is scheduled to receive about $2 billion in stimulus dollars and that, as of Dec. 31, 2009, the state had received more than $880 million in contracts, grants and loans.

She also said citizens and businesses have received approximately $650 million in tax relief through various provisions, including homebuyer tax credits.

Snowe said $400 million in federal stimulus dollars are being used to boost Medicaid payments to hospitals in Maine and that additional money has helped finance unemployment benefits.

And both senators noted than Maine was the first state in the nation to obligate 100 percent of its highway transportation stimulus dollars, part of which was $35 million investment to improve Interstate 295 northbound.

Now, Snowe said, the administration must do more to ensure the money goes directly toward job creation and is not funneled into initiatives that should go through the regular appropriations process.

Earlier this month, she introduced a proposal that would require the Office of Management and Budget to provide a list of as-yet unallocated stimulus funds to Congress and recommend whether the money could be better spent on programs that have proven to create jobs.

"Stimulus is designed to be timely, targeted and temporary, and currently they are not meeting two out of the three goals," Snowe said.

"So that is the point here."