If the amount of money to be spent on Iraq reconstruction were being invested at home, New Jersey's share alone would be $567.3 million, according to a report released today by New Jersey Citizen Action and New Jersey Policy Perspective.

The numbers come from The American Parity Act Report, a national study conducted by the Washington-based Institute for America's Future that analyzes what a $20.3 billion domestic investment-the same amount being spent for Iraq reconstruction-could mean to financially strapped states.

President George Bush's request that the United States pay an additional $87 billion for operations in Iraq and Afghanistan includes a specific request for $20.3 billion to pay for jobs, healthcare, education and homeland security in Iraq over the course of just one year. No such plan exists to create jobs and growth in America, despite many unmet needs in New Jersey and around the nation.

"The Bush Administration's supplemental Iraq funding request is a concrete, funded plan to create Iraqi jobs and economic growth, build Iraqi schools, provide Iraqi's with healthcare and provide for other domestic needs," said Bridget Devane, New Jersey Citizen Action. "Meanwhile, New Jersey has nearly 2 million uninsured people, our school districts are slashing their budgets and tuition is increasing at our colleges and universities. Where are our national priorities?"

"The generous Iraq aid package combined with federal tax cuts targeted for the wealthiest Americans spell trouble for middle-income people," said NJPP President Jon Shure. "They are the ones who will bear the brunt of state budget cuts and ballooning federal debt that could be avoided."

Many in Congress are asking similar questions as they prepare to take up funding for Iraq next week. The American Parity Act (HR 1738), introduced by Rep. Rahm Emanuel (IL), and co-sponsored by more than 100 members of Congress, including New Jersey Reps. Rush Holt (D-12), Donald Payne (D-10), and Frank Pallone (D-6), would direct the United States to match spending on Iraq's domestic priorities with funding for America's domestic priorities. If enacted, the American Parity Act could direct an estimated $567.3 million to New Jersey over the next year, according to the report.

The report also points to a simple way to pay for US priorities in Iraq AND at home-rolling back tax breaks awarded only to America's top 1 percent of income earners to their pre-Bush levels.

The report does not argue against justifiable expenses for American servicepeople or against justifiable expenses for the rebuilding and reconstruction of Iraq. The US faces difficult challenges abroad and at home. But the report does juxtapose the Bush plan to create jobs and growth in Iraq with the many needs in New Jersey and the nation that continue to worsen, unaided by tax breaks that the Bush administration promised would create jobs and economic growth in America.

"With a sluggish economy and over-crowded job market, we have seen an increase in the number of people looking for assistance from social service agencies," said Kevin Duffy, case manager for a social service agency in New Jersey. "With record budget deficits in Washington on the horizon and little hope for an immediate recovery, social service agencies may be the last line of defense for many poor and indigent. These cuts will have harmful consequences on the most vulnerable citizens of our State. It will dramatically limit the ability of hospitals and social service agencies who provide services. Where should these people then turn?" asked Duffy.

Examples of what the $567.3 million (the approximate share for New Jersey of the $20.3 billion requested in HR 1738, the American Parity Act) could pay for in New Jersey:

Unmet Education Needs:

• Provide full college tuition for 139,010 college students
• Hire 18,467 new elementary and secondary teachers
• Enroll 81,814 children in Head Start Programs
• Create 13,482 new jobs to repair and renovate public schools.

Unmet Needs of Low Income New Jerseyans:

• Build 80,720 units of affordable, Section 8 housing and 5,673 new modest housing units.

Unmet Health Care Needs

• Fully pay health insurance premiums for 167,691 people from New Jersey
• Reimburse 567,867 of New Jersey Medicare beneficiaries for their out-of-pocket drug expenses.

Unmet Employment Needs

• Create 24,395 new jobs on local capital expenditures (e.g. roads and bridges)

TAX REFORM

WORK & WAGES

BUDGET & FISCAL POLICY

TRANSIT ISSUES

ECONOMIC DEVELOPMENT

VOTING & GOVT REFORM

© 2008 New Jersey Policy Perspective