The $787 billion dollar stimulus package signed last week by President Barack Obama has many Mississippi students and faculty wondering how they and the state will be impacted.
Although promises of job creation and investments into green technology have been made, it appears the state of Mississippi may reject any economic recovery funds altogether.
Just days after the bill passed, a small number of Republican governors, including Mississippi Gov. Haley Barbour, said they may turn down the $144 billion set aside for state and local governments.
According to NBC News, Barbour spokesman Dan Turner said the governor is concerned about taking unemployment money in the bill and having to pay Mississippi residents who do not meet the state requirements to receive such aid.
R-Alaska Gov. Sarah Palin and R-La. Gov. Bobby Jindal said the enforcement of maintaining programs in the package after the depletion of funds is reason enough not to take the extra funds.
While contemplating whether to take only portions of the stimulus, Barbour told CNN Sunday that it could lead to eventual tax increases.
“[The stimulus] would cause us to raise taxes on the unemployment tax,” he said. “We do not get more jobs by taxing employment.”
Speaking to MSU student leaders before the stimulus package passed, Barbour did not favor the complete package but said it would benefit education.
“Republicans have recommended a bill that costs half as much as the one being voted on, and it creates just as many jobs,” Barbour said. “Now I do believe [the stimulus] will help education greatly. The thing is we don’t know what education levels are included in this package; it could include help for higher education, and it may not.”
In addition to the tax break, Pell Grants will also be affected by the recovery bill. The maximum award level will be increased by $500, possibly helping more than 7 million students.
Senior physical education major Nick Nowacki said the Pell Grant increases will have no effect on his life.
“My parents make too much for me to qualify for a Pell Grant and plus I am not old enough to receive one with them claiming me,” Nowacki said. “Plus the grant does not cover your graduate degree only your bachelors.”
Meghan Millea, associate professor of finance and economics, said economists differ greatly on whether the stimulus package will jump-start the economy.
“Usually government spending and taxes can stimulate the economy with no problem,” Millea said. “This is a unique recession, this is a particularly severe one … so we really don’t know whether it will work.”
Although she said the stimulus could create more employment, Millea said it is important for students to approach their studies seriously to ensure job placement during a recession period.
“You’ve got to really work to make yourself look attractive to employers,” she said. “With fewer jobs then that means more interest in graduate schools and higher competition for acceptance. The best students are going to come out okay but it’s the marginal students who will really suffer.”