In the News

The American Recovery and Reinvestment Act of 2009 was introduced on January 15. The bill provides for hundreds of billions of dollars worth of initiatives designed to promote economic activity and to create or sustain jobs. The bill has generally been referred to as the economic stimulus package.

The proposed legislation provides a full course meal in government spending. It makes supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and state and local fiscal stabilization. The portion that concerns us most directly is title XII which addresses infrastructure issues.

The legislation will be shaped by some debate but it is believed that it will be enacted relatively quickly. The current consensus is that it will be adopted by mid-February.

Some preliminary information includes:

• There will be no local match for any projects undertaken pursuant to the stimulus package.

• There will be no earmarks of projects at the congressional level.

• Money will be disbursed to the states through existing programs.

• The money will be made available on a use it or lose it basis on a 90-day, a 120-day, or 180-day obligational cycle.

• The amount of dollars in the stimulus package continues to change but the amount going to transportation continues to decrease.

The measure would add approximately $43 billion to the U.S. Department of Transportation budget. At least $30 billion would be obligated for highway and bridge programs.

• About half the $30 billion would be on a 120-day use it or lose it clock.

• Unspent money will be redistributed elsewhere.

The bill allocates the funding between state DOTs and local agencies represented through the area-wide planning organizations. These groups, known as MPOs, are the coordinating councils for highway and bridge spending. SEMCOG is the MPO for the Seven County region that includes Livingston County.

The formulas for suballocation are contained in the draft legislation. Small urban areas such as the Brighton-Howell-South Lyon urban area would share in $31.4 million made available for this purpose to the State of Michigan.

There is an additional $132 million that is left to the state’s discretion as how best to spend it. There also is $39 million in transportation enhancement activities for facilities for bicyclists, pedestrians, and similar purposes.

There are many questions that do not have answers at this time. The most significant one deals with project selection. Traditionally, federal highway rules require certain engineering minimums be met as a condition of receiving funds. This has meant in the past that many of our more rural roads that might otherwise be eligible do not qualify for assistance because of deficiencies such as inadequate shoulder width.

We have been working on this stimulus project since December and have evaluated many miles of roads. The most obvious application of the funding that would meet the spirit of the timeline is for asphalt resurfacing.

To view any of our previously issued News Articles and Media Advisories, please visit our Archives.