by Gongwer News Service
March 27, 2009

The hope and promise of federal stimulus money has been such an overwhelming concern that it is hard to remember it has been just a few months that the…well…hope and promise of stimulus money has been on the political landscape. Now, state and local politicians and business and labor executives can begin to exhale, because the money is coming.

Yes, but even so, some are warning that the funds are not enough to cure the state’s ongoing ills, and when the pipeline goes dry, officials will have to continue to confront a pile of ills that a recovered economy alone may not be able to cure.

For the moment though, focus on the money. Even critics of the stimulus package acknowledge something has to be done for the state, which this week learned that unemployment in February hit 12 percent, the highest level in exactly a quarter-century, and that Moody’s Investors Service had revised its outlook for the state from “stable” to “negative.”

In the past week, the Senate unanimously took final action on HB 4582, which will open the gates for expanded road projects this year. More than $873 million will spent for state and local road and bridge projects. Once Governor Jennifer Granholm signs the bill, expected as soon as possible, the state can begin letting contracts for the projects as early as April 2.

Officials hope as many as 25,000 jobs will be created or maintained through the spending. While that is not nearly enough to reverse the 277,000 jobs lost over the past year, it will certainly give the state some new hope.

That came on top of the House passing legislation allocating another $2.1 billion in stimulus spending (HB 4258). While it still needs to go through the Senate, it met with a bit of a political hiccup as Republicans refused to give the measure immediate effect, with House GOP leader Rep. Kevin Elsenheimer (R-Bellaire) likening the measure to an underdone pork roast. Democrats, of course, cried foul, but the bill still has far enough to go in the legislative process to get much exercised over any procedural delays at this point.

Lawmakers are looking for other ways of using the stimulus money, with the House Higher Education Appropriations Subcommittee, for example, cutting university funding by 3 percent (complying with Ms. Granholm’s budget request) but plugging that general fund hole with stimulus money in order to ensure that universities do not lose money.

Ms. Granholm, meanwhile, has been playing the role of circuit preacher, proclaiming the good news of the stimulus package, the American Recovery and Reinvestment Act, and its benefits at locations throughout the state.

But every silver lining has its dark cloud, and while the state is now finally beginning to realize some of the stimulus money and rekindle its hopes it will help restore the economy, there are voices saying it won’t be enough. Many of those voices focused on the state of the state’s infrastructure.

Mike Nystrom of the Michigan Infrastructure and Transportation Association said the stimulus money helps, but to get state roads to a point where potholes are as rare as hen’s teeth will take an annual expenditure of $3 billion.

And Chuck Hersey of the Southeast Michigan Council of Governments said just the sewer systems in his region have upkeep needs that could cost as much as $50 billion in the next several decades, and the stimulus money will not approach that effort.

That remains in the future. For now, officials are happy to get the help.

For nearly 50 years in Michigan, Gongwer News Service has provided independent, comprehensive, accurate and timely coverage of issues in and around Michigan’s government and political systems. For subscription information, including a free trial, visit Gongwer online.