Stimulus Spending Gets a Slow Start, GAO Finds

[Better Believe It]

Stimulus Spending Gets a Slow Start, GAO Finds
By LOUISE RADNOFSKY
Wall Street Journal
April 23, 2009

WASHINGTON -- The first official scorecard for the $787 billion economic-stimulus plan shows limited progress in getting out the small portion of money meant for states and communities this fiscal year.

The Government Accountability Office, the congressional watchdog charged with monitoring implementation of the plan, reported Thursday that states had yet to spend "significant amounts" of transportation funding. It also said that only three states -- South Dakota, California and Illinois -- had completed the application process for getting aid to plug holes in their budgets under the "State Fiscal Stabilization Fund." They're expected to use most of the money to cover shortfalls in school systems.

The report drew attention to the small proportion of the funds, $49 billion, scheduled to go out to states and communities by Sept. 30, the end of the fiscal year. Two-thirds of that money is for state Medicaid programs to maintain coverage and prevent layoffs, and almost all the rest is for state budgets and transportation projects.

States and communities are due to get most of their money, $108 billion, in fiscal year 2010. Another $123 billion will trickle out through 2016. Federal departments are directly distributing another $300 billion for infrastructure and social programs.

http://online.wsj.com/article/SB124049338272347855.html

- I think it's now rather obvious that we need a more effective job creating stimulus program along the lines proposed by the United States Conference of Mayors. The current stimulus is, to use the description of Nouriel Roubini, "puny" compared to what needs to be done.

[Cant trust em]

1. Pretty misleading headling, based on the article. NT

[Better Believe It]

3. I was surprised that $123 billion will trickle out through 2016!

All the more reason why we need a job creating stimulus bill that will have an impact and jolt the economy over the next year and half or two.

While the small tax cut will help pay some bills and the unemployment compensation is badly needed we need to create a few million useful and important public works and infrastruture jobs now.

Have you read the United States Conference of Mayors proposal?

[Teaser]

2. let me help BBI out

news.google.com/news?pz=1&ned=us&hl=en&q=obama+sucks

[Better Believe It]

5. You're on ignore

[Teaser]

7. You'll come crawling back

you always do.

[dkf]

4. The states aren't even using the funds for their intended purpose.

The Hawaii Governor is planning to use education funds for the general state budget.

I still say the Chinese stimulus package was much better thought out than ours. They are already seeing the effects of their package.

[Better Believe It]

6. These two economic recovery programs would get the job done

We need a new stimulus/recovery plan that will jolt the economy and actually create many useful jobs in the next two years. The initial stimulus plan is puny and devote only a small portion of funds, about 100 billion a year to schools and infrastructure over the next two years. Most of the "stimulus" won't be spent until after 2010.

The following two recovery plans would do the job.

The first is: "America's Mayors Report to the Nation on Projects to Strengthen Metro Economies and Create Jobs Now".

This "Ready to Go" Public Works Plan Will Cost 149 Billion And Create 1.6 Million useful public works Jobs in 2 Years

The Republican and Democratic mayors released a report on January 17, 2009. It lists 18,750 local infrastructure projects in 779 cities costing 149 billion dollars that will create 1.6 million jobs. All of these projects can be quickly started and be completed by the end of 2010!

Find out exactly what "shovel ready" stimulus projects are ready to be built in your city, how many jobs would be created and how much they would cost under this plan.

It's in PDF format.

Go here:

http://www.usmayors.org/mainstreeteconomicrecovery /

And click on:

Option 1: Download a PDF version of the full report, including the executive summary, list of participating cities and then projects, sorted by project type or by city.
+ Click to download the report (5 MB)

The second plan Is: "The American Institute of Architects Plan For Restoring Our Economy and Greening Our Communities"

As the global financial crisis continues to threaten the livelihood of American businesses and workers, the American Institute of Architects (AIA) strongly urges Congress to support policies that will stimulate and restore confidence in the U.S. economy.

Rebuild & Renew: The AIA Plan
America’s architects believe that this economic crisis presents an opportunity not only to build, but to build better.

Read the Complete AIA Plan at this link:

http://www.aia.org/aiaucmp/groups/aia/documents/pdf/aia ...

[PBS Poll-435]

8. LOL

:rofl:

[CreekDog]

9. Contradiction: they haven't been able to spend the money fast enough yet, so give them more NOW

I'm all in favor of more stimulus, but the states have to put up good projects, get them approved and funded, then contract them out, or get their finance machinery moving to spend down the money --that takes time.

Adding more money is fine, but if the stimulus were twice as big, you would probably see the same amount of spending at this point in time. Construction projects in particular, require in addition to applications for funding, public noticing, competitive bids and so forth --you don't do all that in 2 months and that doesn't count the time the states needed to apply for the money in the first place.

[Better Believe It]

11. Give it directly to the cities that have shovel ready projects just waiting for funds

Read the United States Conference of Mayors stimulus proposal.

It's very specific. Look up what projects are proposed for your city, if you live in a city.

[AtomicKitten]

10. Looks like you're getting a slow start today if this is the best cheez you could find to post. nt

On edit: Don't forget I'm on ignore so no peaking.

[cooolandrew]

12. There is extra time involved when there is bidding for contracts. Wiser to give them in slow >

release to assure the money is being spent wisely before providing more.