Stimulus: Let the Building Begin
State and local governments will need to move fast to take advantage of the billions of dollars Congress is offering for infrastructure projects.
By the staff of The Kiplinger Letter
February 17, 2009
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Spending on everything from pothole repairs to green energy is at the heart of the stimulus plan designed to create as many as 4 million jobs in two years. With earmarks largely absent from the bill, it will be up to states and local communities to decide how to use the money, but they'll have to scramble to meet tough restrictions that require springing into action quickly. There's no shortage of "shovel ready" projects to choose from, but deciding and then getting the necessary approval from Washington will be difficult for some.
The $787-billion stimulus bill includes about $29 billion for road and highway projects, $8.4 billion for mass transit, $9.3 billion for rail (including Amtrak) and $6 billion for clean water projects. There's another $7 billion to expand the reach of broadband Internet service and billions more for energy infrastructure and health information technology. The hope is that these investments will have a long-term effect. "Money spent now on these projects will pay dividends over the next 10 to 50 years in terms of reduced congestion, vehicle emissions and improved efficiency that increases productivity for businesses and consumers," says John Horsley, executive director of the American Association of State Highway and Transportation Officials.
A state-by-state survey by Kiplinger reporters in the two weeks before passage found a wide variety of situations. Some states already have a pretty good handle on what they want to do; others felt they couldn't decide until they see the details; and still others had to resolve conflicting demands from communities seeking big slices of relatively small pies. Most local communities have long wish lists, but it will be up to each state to pick which will do the most good and can best satisfy federal demands. That means a lot of lobbying and competition.
We've compiled the results of our survey into an interactive map that guides you to the most likely projects in any given state. Final decisions are still weeks away.
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Reader Comments (4)
Posted by: Bob at 02/17/2009 10:29:07 AM
What a political PR joke. Just $29 billion for road and highway projects out of $787 billion? That's less than 4%. Anyone in the construction business realizes what a paltry amount this is when spread nationwide. Most of this amount will be gobbled up by the largest cities in each state and smaller cities and towns will get little or nothing. I talked yesterday with an engineer who said that twenty small cities in his state were competing for $5 million in stimulus funds. Each small city(50,000-100,000) might get about $250,000 each. But the politicians in each city are so anxious to claim that they are going for a piece of the stimulus money that they have already wasted more than that amount getting potential projects ready. In other words more taxpayer money was being wasted than could be gained. Instead of hiring workers, some city employees may be laid off to cover the extra planning expenses. Tell me again. Just how many jobs will this really create? Show me that interactive map again. Somehow I just can't suspend my disbelief.
Posted by: Nomen at 02/17/2009 04:41:18 PM
"That means a lot of lobbying and competition. " Sadly, after the political dust settles many communities won't get a dime even after spending the money to plan and present their projects. From the map above it looks like the biggest cities in each state get the best cuts of pork. Just a few cracklings for everybody else if you're lucky.
Posted by: Carol at 02/17/2009 05:40:55 PM
Amen Bob! As a small business owner, I had my credit line taken away by Bank Of America two weeks ago due to market devaluation of my home. I voted for Obama with high hopes that he really would be different and offer positive change with a fresh approach. Now I wonder, what was I think? Same old politics with the same old results is where we are headed now. Common sense would tell us that if EVERY person in America simply received a stimulus check for $5000, there WOULD be spending and jobs saved….that week.!!! And Americans could actually keep the jobs and homes they have!! Gee, I should be the Money Czar!
Posted by: scott at 02/17/2009 06:45:26 PM
3 to 4 million jobs created out of a welfare, ingrain the Democratic party-spend package? there should of been $500 billion spent on road and highway projects that would of produced high paying construction jobs for out-of-work folks who would then buy vehicles and homes. Take it from small business owner: this stimulus package is joke and is nothing more than an attempt to entrench the democratic party for 20 years and a shift toward socialism. more people on the dole, more govt handouts. God Bless America, let the conservative movement reignite to save this country.