Posted on 01/26/2010 6:56:04 PM PST by FromLori
The Congressional Budget Office hiked its forecast Tuesday for how much the stimulus bill will add to the nation's deficit, raising its estimate by $75 billion to $862 billion.
Unemployment compensation: In CBO's initial estimate for the Recovery Act, the unemployment rate was expected to cap at 9%, but the rate rose above 9% in May and soared above 10% in October.
As a result, the CBO said unemployment compensation in 2009 and 2010 will cost $58 billion. That's $21 billion more than initially expected.
Food stamps: Nearly half of the additional $75 billion comes from more spending on food stamp benefits than originally anticipated. CBO said in its February 2009 estimate that the government would spend $20 billion on increased food stamp benefits through 2019, but it now believes that amount will be closer to $54 billion.
Food stamp benefits are adjusted incrementally every year as inflation rises but the maximum food stamp benefit for a family of four was jacked up by 13.6% to $668 per month as part of the Recovery Act. That maximum benefit was to remain at $668 per month until inflation caught up, at which point the normal incremental adjustments would begin again.
Build America Bonds: The rest of the $75 billion comes from the Build America Bonds initiative. The popular stimulus program allocates federal money to pay state and local governments for 35% of their interest costs on taxable government bonds issued in 2009 and 2010 to finance capital spending.
(Excerpt) Read more at money.cnn.com ...
well there goes the Obama $15 billion in cuts ... what a scam.
Must be accrued interest cause I am finding it hard to believe that something can cost more when $500+ billion of it still remains unused.
Apparently, this lametard jack squat administration forgot to add in some political payoffs and this amounts to being nothing more than an “Oopps! My bad. I’ll rectify it by adding the cost to the American people by adding it to the already FAILED Stimulus......
Yes by 60 BILLION pretty soon it all adds up to big money seriously I never in my lifetime thought we would be hearing about Trillions sigh.
They are Pros at underestimating it seems ever notice when the unemployment report comes out and then a few weeks later someone digs up a buried story that it has been revised? Underestimating my behind just like the unemployment I believe it to be intentional.
>”I believe it to be intentional”<
Agreed.
Was this "unexpected",too?
not by me
Doesn’t surprise me. Look at the unemployment rate. http://www.sacbee.com/1232/rich_media/1698037.html#mi_rss=Business
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