Overview of the Impact of the Stimulus Plan on the Openings Industry The $787 billion economic stimulus was signed into law on February 17th. From an initial glance, President Obama's stimulus package has a number of provisions that may positively impact the openings industry. The stimulus bill includes language that will create a program called the State Fiscal Stabilization Fund, which will have a school modernization/public school component. The following summarizes how the State Fiscal Stabilization Fund of close to $55B will be distributed and highlights the areas that may have a direct and positive impact on the openings industry. • $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization or other purposes. $5 billion to states as bonus grants for meeting key performance measures in education. $10 billion for states’ high priority needs such as public safety and other critical services, which may include education and modernization, renovation and repairs of public school facilities and institutions of higher education.
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The Door and Hardware Institute is in the process of working with decision makers in Washington and at the Department of Education to make sure our voice is heard. From our experience, it is most likely that a committee will be formed to oversee the decisions being made with the State Fiscal Stabilization Fund. In addition to this fund are a number of construction projects that are relevant to our industry. Listed below is a breakdown of the money that will be spent on these projects: • • • • • • • • • • • Infrastructure tax cuts of $22 billion in new tax credit bonds for construction or repair of public schools - $10B NIST facilities construction and maintenance backlog - $360M Construction of new research equipment and facilities for NSF - $400M Construction, repair and energy alterations to federal buildings and facilities $5.5B Construction, repairs and equipment for ports of entry to the U.S. - $420M Funding for Coast Guard acquisitions and construction - $98M Indian Health Facilities construction, maintenance and equipment - $347M Training high-risk youth in construction job skills - $50M Office of Job Corps construction and modernization of residential facilities for atrisk youth - $250M Construction funding for school districts without a local property-tax base $100M Construction of a new National Computer Center for the Social Security Administration - $500M
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Military Defense hospital construction - $1.3B Army National Guard construction - $50M Air National Guard construction - $50M Army family housing construction and repairs - $38M Air Force family housing construction - $97M Veterans Grants for construction of state-extended care facilities for veterans $150M
A complete list can be found at: http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html Collectively, will these initiatives get business moving again? Only time will tell. In the meantime, tell us what you think. How is your company going to be impacted by the plan? What steps are you and your company taking to benefit positively from these potential opportunities? Send an e-mail to Jess Madden (jmadden@dhi.org) and share your thoughts as we hope to feature articles in upcoming issues of Doors & Hardware magazine.