Senator questions using unspent stimulus money to avoid teacher layoffs
Proposal would just move funds from "one pocket to the other," Education committee chairman says.
Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin, D-Iowa, Tuesday questioned a House Democratic idea to offset a provision in the war supplemental spending bill that would provide $23 billion for school districts to avoid a wave of teacher layoffs by using unspent money from the 2009 stimulus package.
"The recovery is working out there; you can see it in everything, so why would you take money out of that to pay teachers? It's sort of [moving funds from] one pocket to the other," said Harkin, who has championed the teachers' cause in the Senate. "I don't see that as helping to stimulate the economy."
His comments came as House Democratic leaders are exploring the idea of dipping into the stimulus. They are faced with a growing number of members in their Caucus who are reluctant to vote for legislation that would add to the deficit.
Despite his concerns, Harkin said he hopes the House can pass the supplemental with the teacher funds. He had sought to include his proposal in the Senate version of the supplemental passed last month, but ultimately decided to drop it over concerns it lacked support.
"I think it's an emergency ... It should be paid for that way," Harkin said. "But we'll leave it to the House and see what they do."
House Majority Leader Rep. Steny Hoyer, D-Md., Tuesday stressed that the stimulus funds, if available, would avert having to borrow new money for teachers.
"It would be paid for to the extent that you would not be borrowing new money," Hoyer said.
Sen. Barbara Boxer, D-Calif., said she supports exploring if the stimulus can be repurposed.
"I think it ought to be looked at," Boxer said.
She added that states -- California in particular -- need the aid. She also recommended looking at Troubled Asset Relief Program funds, which were authorized in 2008 to stabilize the financial industry.
"We are in a very deep hole, and I think it's worth looking at all funding sources," she said.
Their comments came after President Obama urged congressional leaders last week to pass $24 billion to help states cover Medicaid costs and $23 billion to stave off the teacher layoffs.
The Medicaid funding was in a House draft of the tax "extenders" legislation, but the provision was dropped over Democratic concerns about the bill's cost. The measure is now in the Senate, where Democratic leaders are looking to possibly redo the provision.
But some Senate Democrats are opposed to doing so without offsetting the funding.
Sen. Ben Nelson, D-Neb., said using stimulus funds to pay for the proposal would "certainly improve its chances, as far as I am concerned."
Senate Budget Committee Chairman Kent Conrad, D-N.D., said he has proposed having the states repay the Medicaid funding later, possibly "three or four years from now." But he said the proposal has not gotten any traction among his colleagues.
Billy House contributed to this report.