From the Director: Federal Economic Stimulus Package – Update

We received over $600 million in transportation requests and another $600 million in non-transportation infrastructure requests in just four days.

Last week, the House Democrats unveiled their American Recovery and Reinvestment Tax Act of 2009. On the positive side, there is inclusion of Community Development Block Grants, Energy Block Grants and funding for law enforcement. We are also appreciative of U.S. Congressman Norm Dicks (D-Tacoma) efforts that have resulted in considerable flexibility in the drinking and clean water state revolving loan fund programs.

We, and most across the nation, are disappointed with the transportation proposal. Our state can expect about $515 million after various takedowns. These funds are further distributed by formula-55% goes directly to the state, and the remaining 45% is further sub-allocated to the Metropolitan Planning Organizations and to the state. To put this in perspective, the Puget Sound Regional Council would receive about $60 million in comparison to over $3 billion in requests. Clark County’s federal metropolitan planning organization would receive about $8 to $10 million. The sub-allocation to the state is approximately another $70 million – the state has the discretion to retain or distribute these funds to local jurisdictions. We have already been in contact with the Governor’s staff on the use of these funds for local purposes.

The proposed Act is peppered with requirements for the state and locals. For example, the state must submit its priorities for wireless and broadband grant proposals within 75 days. Locals must have transportation funding obligated within 90 days or remit the funds to the state (the state has a total of 120 days to obligate funds).

We are expecting the Senate to unveil their version of the American Recovery and Reinvestment Act of 2009 next week. If the rumors from Washington D.C. hold, most of the programs will be very close to the House proposal. The one exception is that the transportation level is expected to increase. Any transportation increase is clearly good news. On the other hand, we must be realistic. A hypothetical twenty-five percent increase will result in additional state projects, a few extra projects in our most urban regions, and one or two projects throughout the rural areas of the state.

Once Congress takes final action, the authority to proceed at the state level can occur as soon as seven days after President Obama signs the Act. From that point forward, we can expect to see results of the package by spring of this year.

We will continue to be engaged with the Governor’s office and the respective Legislative Leadership to secure resources for cities.

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