Democrats drawing up stimulus package
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

WASHINGTON - Hoping to give the faltering economy a jolt, congressional Democrats are drafting a second stimulus package that would spend billions of dollars on road repairs and new unemployment benefits.

But most of their Republican counterparts - including President Bush - are lukewarm on the idea, though they are careful not to rule it out entirely.

There appears to be no split in Utah's five members of Congress. They don't want to see another economic stimulus bill.

"We should be careful not to allow election year politics dictate that unpaid projects get put in place," said Rep. Jim Matheson, the lone Democrat in Utah's delegation.

The new proposal, believed to be worth $50 billion to $75 billion, would not include tax rebate checks like the first stimulus package, approved by the president and Congress in February.

Under that $168 billion bill, workers and retirees received rebates worth $300 to $600. Those who have not yet claimed their rebate checks can still do so until Oct. 15.

House Majority Leader Steny Hoyer, D-Md., said a new Democratic stimulus package could come up for debate as soon as next week.

Democrats are also discussing the possibility of including $25 billion in direct loans to troubled U.S. automakers in the bill.

Some Democrats, including presidential candidate Barack Obama, have called for a second wave of tax rebate checks.

But White House spokeswoman Dana Perino told reporters this week that the president isn't calling for another economic stimulus bill, citing an increase to the deficit as a concern.

The non-partisan Congressional Budget Office reported Tuesday that the deficit will reach $407 billion this year and that next year that near-record amount could be as high as $438 billion. And that was before the government took over Fannie Mae and Freddie Mac. In the report, the CBO said the rapidly rising deficit is due to a faltering economy and increased spending, including the first stimulus package.

That's what has Matheson concerned about the latest proposal. He said he wouldn't support a stimulus bill that wasn't paid for and wouldn't immediately help the economy. He worries that money spent on projects such as roads and bridges have a delayed economic impact. Though he does support a broader long-term investment in such projects.

Out of Utah's congressional delegation, Republican Sen. Orrin Hatch, expressed the strongest opposition to the Democratic plan.

Instead of a stimulus package, he said Congress should focus its remaining time on energy legislation, free-trade agreements and extending the Bush tax cuts.

Sen. Bob Bennett's office wouldn't directly say whether he felt a stimulus package was necessary or not, but his spokeswoman Tara Hendershott said: "There are a limited number of days before the Congress adjourns and Senator Bennett believes the Senate should focus its attention on efforts to combat the energy crisis and fund the government."

Rep. Rob Bishop, R-Utah, wants to wait for the specifics of the package before saying whether he supports it or not, though he wouldn't be surprised if the Democratic proposal never materializes.

Rep. Chris Cannon did not return requests for comment.

mcanham@sltrib.com

What's included

Features of the new Democratic plan:

* Would include billions for road projects, home heating assistance, expanded unemployment benefits and state Medicaid.

* Also possible is as much as $25 billion in direct loans to automakers.

* Some Democrats, including Barack Obama, advocate a second round of tax rebates.

Utah's Congressional delegation is mostly cool to the proposal
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