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Road work the first sector to get stimulus money; others in line

Date Posted: April 10 2009

LANSING – The state is starting to spend the stimulus.

On March 31, Gov. Jennifer Granholm authorized the spending of $873 million – the state’s first major chunk of the American Recovery and Reinvestment Act – which will go toward hundreds of road and transit projects across the state.

“This legislation gives the green light to hundreds of projects that will put thousands of Michigan citizens to work within weeks, doing the vital work of improving our crumbling roads and bridges all across the state,” Granholm said. “It was essential to get this legislation passed in time for construction season, and I want to thank our legislators for moving so fast. Pumping this federal money into the state’s economy quickly will help accomplish our goal of using it to accelerate our own recovery plan for Michigan.”

Michigan is expected to get a total of $7 billion in stimulus money. The state said the federal dollars are expected to address a range of “shovel-ready” projects such as road-resurfacing, rehabilitation and widening, bridge repairs and transportation enhancement projects. The projects were chosen by planners, engineers, and local leaders and cover every region of the state.

The transportation construction money directs $635.4 million to the state trunkline (US, I and M routes) fund, $211.8 million directed to programs administered by local jurisdictions, and $25.8 million directed to rural and inter-city bus capital projects.

Just a few examples of projects include repair of 11 bridges over I-96 in Detroit ($22 million), reconstruction and widening of I-96 in Kent County ($30 million), and road reconstruction and bridge work on I-475 in Genesee County ($26 million).

The spending is the first use of Michigan’s share of about $7 billion in federal recovery money that the state will invest in accelerating its own recovery plan. It is in addition to approximately $980 million Michigan is spending on transportation funding this year, which will create more than 27,000 additional jobs, according to the state.

“These recovery projects will allow Michigan construction workers to keep working in Michigan,” said state Transportation Director Kirk T. Steudle. “It is also a shot in the arm for our transportation system. Although this won’t meet all our state’s long-term transportation needs, it’s a huge step toward making our roads and bridges safer for our citizens and visitors and attracting new employers.”

Transportation construction isn’t the only sector getting federal money. On March 30, Granholm announced that 69 Michigan communities and tribal governments would soon be getting $76.6 million to fund energy efficiency and energy conservation projects.

“Making our state more energy efficient will put Michigan workers back on the job, increase demand for our own renewable energy technologies, and reduce our reliance on fossil fuels, Granholm said.

Though the federal Department of Energy has determined the overall funding levels for state and local governments, communities still must submit an application to the DOE before they will receive their Recovery Act dollars.

The money will be spent on: conducting energy audits and installing energy efficiency retrofits in residential and commercial buildings; developing and implementing advanced building codes; creating financial incentives for energy efficiency improvements; equipping landfills to reduce and capture methane and other greenhouse gases; installing renewable energy technologies on government buildings; investing in energy efficient traffic signals and street lights, and utilizing combined heat and power and district heating and cooling systems.

Further indication of how the $7 billion in stimulus will be spent was revealed on March 26, when the Michigan House of Representatives adopted a plan that will spread $2.1 billion of federal stimulus funds across 10 state departments. The plan now heads to the Senate for approval.

“This investment in Michigan will lay the foundation we need to get our economy moving in the right direction,” said House Majority Floor Leader Kathy Angerer (D-Dundee).

The plan that passed the Michigan House will provide at least some yet-to-be determined work for the construction industry, but overall, it provides indications how large portions of the stimulus money will be spent:

  • $962.6 million to the Department of Education, which will focus on handicapped preschool initiative grants, special education, assisting at-risk children and school improvements.
  • $435 million to the Department of Human Services for weatherization programs, food assistance and other community assistance.
  • $344 million to the Department of Energy, Labor and Economic Growth to support energy efficiency programs, unemployment and employment services, and workforce training programs.

An amendment to the plan offered by State Representative Dan Scripps (D-Leland) requires that the agencies post reports on a public web site to detail how each dollar of the federal stimulus funding is spent.

“This is a one-time investment in Michigan, so we must make sure every cent is spent wisely,” Scripps said.