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Crapo Explains Stimulus Plan's Impact on Idaho

Boise, Idaho -- Sen. Mike Crapo made a special address to both the house and senate about the stimulus bill and what it means for the Gem State. Obama's economic stimulus plan is something he never wanted to see passed.

"The reality is these dollars come from somewhere and they come from borrowing money. from more debt which we pile onto our children and our grandchildren," explained Crapo.

With interest factored in, that debt will reach over $1 trillion in just a few years. Still, it's a done deal now and Crapo wants the public to know part of the bill will have a positive impact in the Gem State.

Up to a $1 billion will be coming to Idaho. 

"Approximately $400 million plus, maybe as much as $465 million will come to INL right here in Idaho for hundreds of new jobs and a significantly expedited clean up activity," enthused Crapo. 

With more hiring expected, the chair of Boise State University's economics department echoes Crapo's prediction that the money will mean some quick improvement.

"It is going to slow the decline. Unemployment will be less than it would have been otherwise," said BSU professor Don Holley.

Still, both he and Crapo agree the government spending has to be well planned or it could cause the Gem State to eventually go into debt. Crapo is advising legislators to spend money on one time projects like construction rather than programs that require funding year after year.

Holley forecasts that he'll get his wish.

"I think there will be a big push in the legislature to fund those kind of projects, so they'll buy into the highway projects very easily," he said.

As to the multi-million dollar question, whether the stimulus will really do enough to kick start the economy?  The experts we talked to, worry more action on both the housing and credit crises will be required before a full recovery.

"Will it put banks back into a position where they're willing to lend? Will it create enough income that people are willing to spend like they spent before.?  The answer is no," explained Holley.

"The stimulus is going to be short lived and we will be stuck with the bill," complained Crapo.