Showing posts with label appropriations budget earmarks spending. Show all posts
Showing posts with label appropriations budget earmarks spending. Show all posts

Saturday, December 16, 2017

Infrastructure News

ENERGY

Missouri DOT Explores Solar Roads

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INFRASTRUCTURE

Maps of U.S. Infrastructure

The Washington Post has an online article that includes six informative maps about U.S. infrastructure. We encourage readers to check it out.


Missouri Gets F for Road Safety

That National Safety Council gave Missouri an F for road safety in its recent State of Safety: A State-by-State Report. Missouri’s low score is a result of the lack of laws relating to child passenger protection, texting while driving, seat belts and other transportation safety issues.

The state received and overall grade of F and was ranked lowest in the country (ranked 51st out of all states and the District of Columbia and ranked 49th for road safety) . In addition to road safety, the report considers safety issues in workplaces, homes and communities. You can find the Missouri scorecard here, as well as NSC’s scoring methodology.

Missouri Still Contender for Hyperloop

We previously noted that a Kansas City to St. Louis route was entered into a competition for Hyperloop One as it considers routes for a high-speed, tube magnetic levitation system. Apparently the 240 mile route across Missouri to connect the two Midwestern metropolises is still in the running. You can find more here.

Here is a link to another articles on a potential hyperloop in Missouri:

Missouri Transportation Improvements Stalled

The Columbia Missourian recent published an evaluation of Missouri Governor Eric Greitens’ campaign promise to improve state transportation infrastructure. Though the governor recommended supplemental appropriations for the transportation agency in his fiscal year 2018 budget, he has not proposed new or increased funding sources and generally has opposed increased taxes. Recent bills in the state General Assembly that would increase fuel taxes have also failed to pass.

Here are some additional articles on Missouri’s transportation funding.

Texting Lanes Coming to Miami

Apparently it is hard for some people to put down their cellular phones and pay attention to something else. The Miami Dade Express Authority has decided it is easier to change the roads than change behavior. It is planning to install to install bumpers on one lane of a highway and designate it for texting use.

Infrastructure Watch usually passes on thing like this without comment, but this seems like a bad idea. It may keep texters from wandering into other lanes, but it seem like they can still get into a lot of other troubles. In addition, it does nothing to address texting while driving in other lanes or on other roads. IW believes there is a role for technology in addressing this issue and that we have to be realistic about human behavior, but on the whole this does not seem like a very expensive way to address just a small part of the problem.

For all of you texters who won’t be driving Florida’s bumpered, baby lanes: STOP IT!

At any rate, you can read more about this here.

Incidentally, Florida got a F for road safety in the NSC State of Safety report, where it ranked 44th. It’s overall grade was a D, with a rank of 40th. You can see the Florida scorecard here.


Philadelphia Unearths Wooden Water Pipe

Recently a construction crew digging in Philadelphia came across segments of wooden water pipe that were probably installed in 1812. Fortunately, Philadelphia is not still using these pipes. When they were installed, they would have carried water from the Schuylkill River that was pumped up by steam engine.  You can read more about it here.

The Poop Engineer: Wastewater Blog

IW welcomes another engineering and environment blog to the web, The Poop Engineer. IW is not associated with The Poop Engineer, though the author worked at the same company for a while. Good luck, Andy.

Water Weirdness

Apparently some UK utilities uses dowsing rods to find water pipes.  IW does not recommend this, but it’s interesting that people cling to it. Here are links to articles on the practice.


Monday, February 1, 2016

Transportation and Engineering News


Missouri Governor Proposes Funding Increase for Amtrak

The budget proposal submitted by Missouri Governor Jay Nixon included an additional $500,000 for Amtrak, for a total of $10.2 million. Amtrak claims it will need $18 million from the state to install positive train control, as mandated by Congress, on the Missouri River Runner line, with a total cost of $30 million. You can find more about this issue here.

Missouri Legislator Suggests Punt to Counties

Missouri State Representative Bryan Spencer proposed to make counties responsible for the upkeep of certain roads that are currently maintained by the state (these are generally rural, two-lane highways). This would reduce the amount of state-maintained roads by 19,000 miles. The roads in question have been state-maintained since 1952, when they were shifted away from county maintenance. To implement the proposal, the state constitution must be amended. You can find more about this proposal here and here. Most proposals to improve Missouri’s road funding problem involve raising the fuel tax.

WOMEN IN STEM

Women Take Lead at Engineering Organization


The American Society of Civil Engineers (ASCE) has nominated two women to the ballot for its president-elect.  Robin Kemper and Kristina Swallow are both professional engineers, and one will be ASCE’s president-elect and eventually president. Kemper provides expertise on construction and professional liability issues at Zurich Services Corporation. Swallow leads a team of public works engineers in Las Vegas. ASCE’s current president-elect, Norma Jean Mattei, will step up to the office of president, meaning the top two offices in the organization will be held by women for the first time in the 164 years it has existed. You can find more here.

Sunday, December 13, 2015

All About Missouri This Week

Bill Prefiled to Ban Texting and Driving

Missouri State Senator David Pearce has prefiled a bill that would prohibit the use by all drivers of hand-held mobile phones to send, read or write text messages. Find out more here.

Gubernatorial Candidates Discuss Tranportation Funding (Just a Little)

So far, Missouri’s candidates for governor have provide few details about how the state will pay to maintain roads. Missouri is 7th among the states in the size of its transportation system, but 47th in state funding.

Candidate Catherine Hanaway suggested that the $200 million annually in state fuel tax revenues that is used to fund the Highway Patrol could be committed to transportation. The Highway Patrol would be funded from general revenue, though Hanaway’s plan does not provide specifics about how other general revenue-funded programs would be cut or how general revenue would be increased. You can find more about Hanaway’s proposal here.

The state General Assembly is also looking at the issue. A prefiled bill (HB 1381) would raise the state fuel tax from 17 cents to 19 cents per gallon.

First Woman Engineering Dean at University of Missouri

My alma mater, the University of Missouri College of Engineering, has named its 11th dean, Elizabeth G. Loboa. She is the first woman to hold the position. Loboa has a background in biomedical engineer. Before coming to Mizzou, she held a joint appointment at the University of North Carolina-Chapel Hill and North Carolina State University.

Highway Commissioner Appointed

Gov. Jay Nixon appointed Hannibal-area lawyer John Briscoe to serve on the Missouri Highway and Transportation Commission. The appointment must be confirmed by the Senate.

Springfield Buying Wind Energy


City Utilities of Springfield announced it will be buying energy from a wind farm to be built north of Oklahoma City, OK. The wind farm is being built by Duke Energy Renewables and is designed to produce 200 megawatts.

Wednesday, March 20, 2013

In Congress


Continuing Resolution

Because Congress still has resolved budget debates and passed appropriations bills, it will need to pass another continuing resolution by March 27. The bill passed by the House of Representatives (H.R. 933) holds non-defense spending at the levels approved in Fiscal Year 2012.

One consequence of this is, at least for the time being, the increased spending on surface transportation programs included in MAP-21 will not be enacted. Senate leaders indicated that they might add transportation spending increases in that chamber.

Related posts and articles

House, Senate Transportation Bills Differ

Budget proposals from the House of Representatives and the Senate differ greatly on transportation (as well as other issues). Mainly, the House budget cuts transportation funding, and the Senate budget increases it.

Related posts and articles

Senate Questions Interior Secretary Nominee

The Senate Energy and Natural Resources Committee posed questions to Sally Jewell, President Barack Obama’s nominee for Secretary of Interior. As you might expect, questions focused on energy development on federal lands and environmental protection related to such projects. Of particular concern was hydraulic fracturing (fracking) for natural gas production in western states and oil drilling in the Pacific Ocean and Alaska.

Related posts and articles

Friday, February 22, 2013

In Congress


Balancing Act

The Balancing Act (H.R. 505) has been referred to several committees of the House of Representatives. The bill is intended to delay sequestrations, improve efficiency, reduce tax loopholes, and extend some programs. Some of the infrastructure related highlights of the bill include

If Congress would like to put this blogger to work, it should end this ongoing threat of sequestration and agree on a budget.

Congressional Budget Office Releases 4Q2012 Recover Act Report

The Congressional Budget Office (CBO) released a report on the economic impact of the American Reinvestment and Recovery Act (ARRA) for the last quarter of 2012. During that period, ARRA funded 113,000 full-time-equivalent jobs (FTEs), though this figure does not necessarily correlate to increased jobs in the economy. CBO estimates the economic impacts for the reporting quarter to be
-0.1 to 0.6 percent increase in gross domestic product (GDP),
-0.1 to 0.4 percentage point decrease in unemployment, and
-increased the number of people employed by between 0.1 million and 0.8 million.

Fix It First

President Barack Obama’s Fix-It-First proposal has received some fairly gentile criticism from House Transportation and Infrastructure Chairman Bill Shuster (PA). The plan would provide an additional appropriation of $50 million to transportation projects ($40 million to transportation programs and $10 million to capitalize an infrastructure bank). Rep. Shuster says the proposal fails to address the long-term issue of transportation funding. Current transportation funding sources bring in $35 billion annually, but Congress has approved spending of more than $50 billion annually. You can read more about this issue at The Hill.

Thursday, February 7, 2013

Missouri Governor Proposes Moving Energy Division



The Division of Energy houses programs related to energy policy, resources, efficiency and education.  Specific program include low-income weatherization assistance, the energy revolving fund and certification of home energy auditors.

The General Assembly may reverse this decision if it acts before April 8 (60 days after the executive order was signed on February 4).  If this does not occur, the transfer will become effective on August 28.

Related post and articles

State laws that could be affected by the change include
Sections 135.300-135.311 RSMo.tax credit for wood energy
Section 143.121 RSMo. – tax deduction for home energy audits
Sections 414.400-414.471 – reduction of state vehicle fuel consumption
Section 640.150 RSMo. – various energy policy, information and education duties assigned to Department of Natural Resources director
Section 640.153 RSMo.certification of home energy auditors
Sections 640.155-640.219 – various provision related to energy programs, education and funding
Sections 640.651-640.686 RSMo. – establishing the Energy Set-Aside Program fund and an energy loan program

Wednesday, January 9, 2013

Revisit: Fiscal Cliff, More Trouble for Colo. R., EPA Leadership


Fiscal Cliff Deal & Wind Energy

I posted highlights from the fiscal cliff deal earlier this monthThe law extended several tax credits and program supporting energy, including wind energy.  Here are links to some additional information on wind energy in the fiscal cliff deal.

Senator Viewed Low Mississippi River

Reuter reported that Sen. Dick Durbin (IL) toured the Mississippi River near Thebes, IL, to view efforts to remove rocks and keep the drought-strained river open to barges.

IW has been following the impacts of the drought on the Mississippi River:

Southwest United States May Be Dryer in Future

Researchers from Columbia University predict a 10 percent decrease in rainfall in areas of the southwest United States.  This would lead to a corresponding reduction of flow in the already critical Colorado River, which may news recently because of the recent release of a federal plan for the river.  Find out a little more in this Los Angeles Times article by Bettina Boxall (here→).

Speculation on Next EPA Administrator

Environmental Protection Agency (EPA) Administrator Lisa Jackson announced her plans to resign.  Speculation has begun on who may replace her.  I don’t know if odds-makers are taking bets.  Here are some links that may help you handicap the race.

Tuesday, December 18, 2012

DOT Inspector General Gets Extension to Spend Stimulus Funds


The American Recovery and Investment Act (ARRA) provided funds for inspectors general at agencies receiving supplementary appropriations through the act to conduct investigations related to the spending of the funds, oversight of projects, and compliance with special requirements.  A subsequent act directed act (the Dodd-Frank Wall Street Reform and Consumer Protection Act) required the return to the Treasury of unobligated ARRA funds after December 31, 2012, unless the president found it was not in the national interest to do so.  At the request of several inspectors general, including the one at the Department of Transportation, President Barack Obama waived the recession of ARRA funds for the inspectors general so they could continue long-term investigations and oversight.

Tuesday, December 4, 2012

111th Congress Wrapping Up

Congress Wants Noisier Hybrids
Congress has passed the Pedestrian Safety Enhancement Act of 2010 (S. 841). The bill requires the Secretary of Transportation to issue rules that would require hybrid and electric cars to create enough noise to alert blind pedestrians of their presence. The bill must be signed by the president to become law.

Bill Introduced to Extend Hours of Service Rules to Yardmaster Employees
Outgoing Transportation and Infrastructure Chairman James Oberstar introduced the Railroad Hours of Service Act of 2010 (H.R. 6519). The act would extend hours of service rules for railroad employees to yardmaster employees.

House Votes to Reauthorize Transportation Program for One Year
Earlier this month, the House of Representatives passed a continuing resolution that would authorize continued spending on transportation programs at the current level through the end of the fiscal year. It will be up to the incoming Congress to work out a new transportation bill.

Related posts and articles
Bill Watch—111th Congress

Recovery Act Review


Economic Impacts of ARRA 

The Congressional Budget Office (CBO) reports quarterly on the estimated economic impact of the American Reinvestment and Recovery Act of 2009 (ARRA).  In its report for the third quarter of 2012, it estimated that ARRA funded more than 135, 000 jobs (full-time equivalents, or FTEs).  It expects 90 percent of ARRA’s budget impacts will be realized by the end of the year.  It projects that ARRA will increase they budget deficit by $833 billion by 2019, up from its original estimate of $787 billion.

Cleanup Projects

 The Department of Energy (DOE) received $6 billion from ARRA for the cleanup of DOE-managed sites that produced nuclear material.  According to a Government Accountability Office (GAO) report, ARRA-funded jobs peaked in the fourth quarter of 2010 at about 11,000 FTEs.  They reduced the footprint of managed sites by 70 percent; that is they cleaned up more than 650 square miles.

Beginning with ARRA, DOE implemented a project management approach that broke down projects into more manageable pieces.  GAO found that this practice may have allowed the agency to classify projects in a way that may have allowed them to avoid certain review processes.  In addition, inconsistencies in developing project scope, schedules and targets, along with variability in documentation, makes it difficult to accurately assess and compare project and program performance.

State and Local Management of ARRA

State and local governments had significant responsibilities in managing ARRA funds as recipients.  GAO reported findings related to their review of state and local management.  Some of those findings include:

-The emphasis on obligating ARRA funds resulted in delayed obligation of other funds.
-Recipient expertise effected the management of ARRA funds.  Particularly, state agencies tended to have more success in managing their ARRA projects that local agencies because of greater familiarity with federal requirements.
-Unclear guidance caused problems for various projects.
-Internal controls of some recipients were not adequate, at least at the start, for monitoring compliance with ARRA requirements.

Related posts and articles

American Reinvestment and Recovery Act News

$1 of Highway Spending Creates $2 of Economic Activity (Infrastructure Watch, Dec. 4, 2012)





$1 of Highway Spending Creates $2 of Economic Activity


Economists at the Federal Reserve Bank of San Francisco studied the effects of unexpected grants to states for Federal-Aid Highways affected gross state product (GSP, or the gross domestic product (GDP) of a state).  They found that an unexpected $1 increase in federal highway grants to a state resulted in a $2 increase in GSP.  The economic effect was double the amount of the grant.  In the short term, effects on GSP were even greater.

You can read the unpublished paper here→ or read a summary here→.  Additional posts and articles related to the impact of infrastructure investment include:

Wednesday, January 11, 2012

Bill Quickies

The 10 Million Solar Roofs Act (S. 1108) would establish best management practices for solar permitting and provide grants to local governments to implement those practices.

A group of Iowa, Kansas, Missouri, and Nebraska Congressmen sponsored a bill (H.R. 3719) that would make restoration of levees after the 2011 floods the top priority for the Corps of Engineers in its management of the Missouri River.

Congress finally passed an appropriations bill for the rest of fiscal year 2012 (H.R. 2055).

The Hydropower Regulatory Efficiency Act of 2011 (H.R. 3680) would ease the permitting of small hydropower projects and fund workshops, pilot projects, and studies related to hydropower.

The Geothermal Exploration and Technology Act of 2011 (S. 1142) would fund geothermal exploration and the development of related technology.

President Obama signed into law the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (more information).

Monday, November 14, 2011

In Congress

Congress rolls on, after its fashion, even when a blog pauses. Here is a summary of what our senators and representatives have been up to over the last few weeks.

Acronym Mongers Active in Legislature
The Farmers Undertake Environmental Land Stewardship Act (H.R. 3158) would set limitations for rules the Environmental Protection Agency (EPA) might implement to control spills at animal feeding operations. Another bill would constrain EPA (S. 1702) would limit the agency’s regulation of emissions from stationary internal combustion engines used for electric power generation or water pumping, though it doesn’t have a clever name.

The Resources and Economic Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast Act of 2011 (H.R. 3096) would create a Gulf Coast Restoration Trust Fund to be funded from penalties from the Deepwater Horizon incident. The fund would support restoration efforts in the coastal states on the Gulf of Mexico. The bill would also create five centers for excellence for the study of effects of the spill and the restoration of the Gulf.

Agency Potentially Under the Ax

The EDA Elimination Act of 2011 (H.R. 3090) would repeal the Public Works and Economic Development Act of 1965, which created the Economic Development Agency. The bill has been referred to various committees.

American Jobs Act
The American Jobs Act of 2011 (H.R. 12) rolls together a lot proposals into an omnibus, dare it be spoken, stimulus bill. A significant portion of the bill deals with employment tax relief, other tax reform and supporting education jobs and facilities. Only part of the bill deals with the kind of infrastructure we normally cover at Infrastructure Watch.

-Transportation appropriations. The bill would appropriate $39 billion to air, rail, port and highway transportation programs. In most cases, normal matching requirements would be waived.

-Infrastructure Bank. The bill incorporates the BUILD Act, the main purpose being the creation of a national infrastructure bank.

-Redevelopment. The bill appropriates $15 billion to the Department of Housing and Urban Development to make grants for the redevelopment of abandoned and foreclosed properties.

A version of this bill was also introduced in the Senate (S. 1660). There are several other bills intended to create jobs and stimulate the economy.

The Jobs Through Growth Act (S. 1720) would, among other things, limit EPA’s rulemaking authority and ease the way for energy exploration in the continental shelf. The Rebuild America Jobs Act (S. 1769) would fund transportation projects and create an infrastructure bank, and increase taxes on people with incomes of $500,000 or more (I wish I had that kind of problem).

Appropriations
Appropriations acts, the only thing Congress really has to do every year, are making their way through the process.

-The Continuing Appropriations Act, 2012 (H.R. 2608) passed both houses.
-The Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2012 (S. 1596) was introduced to the Senate.

Bill Would Suspend Requirements for Highway Projects
Rep. Randy Forbes (VA) has introduced the 414 Plan Act of 2011 (H.R. 2924). The bill would suspend several federal requirements for federal-aid highway projects and highway safety construction. The suspension would last for five years. It would also repeal several laws relating to biking and pedestrian traffic.

Coal Combustion Product Regulation
The House of Representatives passed the Coal Residuals Reuse and Management Act (H.R. 2273). This bill would put regulation of coal combustion products under Subpart D of the Solid Waste Disposal Act, essentially putting regulation in the hands of the states and heading off a potential determination from EPA that may have brought it under a federal regulatory program.

Congress Passes Bill to Extend Transportation Programs
Both houses have Congress have passed a bill (H.R. 2887) to extend several surface and air transportation programs through March 31, 2012. Long-term reauthorization is underway (S. 1786).

Related posts and articles
Congress of Deadlines
Congress to Take Up Transportation Bill, Infrastructure Bank
House Passes Transportation Bill

Energy Bill Has Unusual Name, Other Energy Proposals
In spite of its name, the Rebuild American Roads Act (H.R. 2983), would expedite plans for energy resource exploration and drilling in the continental shelf, especially in the Gulf of Mexico. The bills was introduced by Rep. Shelly Moore Capito (WV). The POWER Act (H.R. 2360) would make U.S. laws applicable on energy structures on the outer continental shelf.

The Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act of 2011 (H.R. 2842) would smooth the way for the development of hydropower generation projects in Reclamation water conveyances. The Public Lands Renewable Energy Development Act of 2011 (S. 1775) would establish means to permit solar and wind energy projects on public lands and extend existing geothermal development programs.

Missouri River Priorities Contested
Rep. Sam Graves (MO) has introduced a bill (H.R. 2993) that would strike wildlife protection as priority for the Corps of Engineers’ Missouri River management plan and make flood control the top priority. S. 1795 would direct the Corps to address flood control specifically by increasing storage.

National Infrastructure Bank Bill
Sen. Sherrod Brown (OH) has introduced the National Infrastructure Bank Act of 2011 (S. 1550). The bank would be board-governed and make loans and loan guarantees of up to half the project cost to public sponsors of a variety of infrastructure projects. The bill would authorize appropriations of up to $5 billion annually through 2015 to capitalize the bank.

The American Jobs Act of 2011 (S. 1549) also includes an infrastructure bank proposal. That bill would establish the American Infrastructure Finance Authority to make loans and loan guarantees for transportation, water and energy infrastructure projects. This provision appears to be very similar to the BUILD Act.

A version of this bill was also introduced into the House of Representatives (H.R. 3259).

Related posts and articles
Calls for Infrastructure Bank Continue
Congress to Take Up Transportation Bill, Infrastructure Bank
President Proposes New Recovery Plan
President Sends Jobs Plan to Congress

Water Resources Infrastructure Bill Hits Senate
The Senate version of the Water Infrastructure Resiliency and Sustainability Act of 2011 (S. 1669) has been introduced. A similar bill was previously introduced in the House.

Related posts and articles
Water News: Water Resources Resilience Bill Introduced

Friday, September 9, 2011

President Proposes New Recovery Plan

President Barack Obama recently addressed Congress to proposes a $447 billion plan to stimulate the ecomony. He didn’t use the word “stimulus.” He spoke a lot about jobs, though, and is looking to construction as one way to do it. The proposal combines spending and tax breaks. It is bigger than anything the House of Representatives will likely be comfortable passing, but House leaders have indicated there are portions of the proposal they can get behind.

Related posts and articles:
Obama Channels Frustration with $447B Plan
Obama’s Jobs Bill: Heavy on Infrastructure, But Heavy Enough?
Obama Tax Cut Wouldn’t Guarantee Quick Boost, Economists Say

Friday, September 2, 2011

Congress to Take Up Transportation Bill, Infrastructure Bank

Some are anticipating that Congress will approve an extension of federal transportation programs in the week following Labor Day. Cuts in funding of up to 20 percent may be part of the bill, with some programs getting hit harder than others. An infrastructure bank measure may also be considered.

Related posts and articles
Congress of Deadlines
New Bill Proposed by The House Transportation & Infrastructure Committee
Obama: Jobs, Infrastructure Bank and the Labor Day Weekend

Tuesday, August 2, 2011

Reviewing the Recovery Act

Infrastructure Watch has been following the American Reinvestment and Recovery Act (ARRA) since it was enacted. While infrastructure accounted for a relatively small amount of the total supplementary appropriations provided by ARRA, tens of billions of dollars is noteworthy in any industry. Much of the money that went to infrastructure has been spent and ARRA will begin a slow wind-down from the perspective of infrastructure. It seems like a good time for a review of the program and it effects so far.

INFASTRUCTURE INVESTMENT

ARRA committed only a fraction of its supplementary appropriations to infrastructure. Even so, the $62 billion appropriated to transportation and water infrastructure was significant considering that federal spending in this area had been declining. In 2009, this resulted in a $6 billion increase in federal infrastructure spending, of which $4 billion was directly from ARRA.

The Congressional Budget Office (CBO) estimates that 90 percent of these funds will be spent by 2013. The Government Accountability Office (GAO) had reported that 90 percent of the highway funds had been obligated by February 2010 and about a quarter of that had been paid out to state transportation programs. The clean water and drinking water state revolving fund (SRF) programs had drawn almost 80 percent of the funds by June 2011.

The author and others working in these industries are already looking for what projects or business lines might have the potential to bring in revenues as the ARRA well runs dry in a few years. The prospects aren’t entirely gloomy. Generally, the federal government accounts for only 25 percent of the spending on transportation and water infrastructure. The rest comes almost entirely from state and local governments.

Though federal funding is a minority of the investment in infrastructure, it is a significant portion of the capital investment, with relatively little going to operations and maintenance. This trend continued with ARRA. Smart Growth America criticized ARRA because to much went the construction of new transportation assets and too little to repairing existing infrastructure. They thought the extra appropriation would have been better spent and had a greater economic stimulus if more of it had been spent on the repair of existing infrastructure.

Maintenance of Effort
Though states are already a significant contributor to spending on transportation efforts, ARRA required states to continue funding transportation at the level they would have without the extra funding. Congress wanted to increase spending on transportation infrastructure, not give states a way to shift money to other areas.

The requirement has proven problematic. States are facing losses of revenue that may have forced them to cut transportation spending anyway. In addition, ARRA didn’t require to report what there level of effort would be until several months after they began to use the funds. States may not have, strictly speaking, circumvented the maintenance of effort requirement, but it has become difficult to say they have continued funding as they would have anyway.

JOBS CREATION
ARRA recipients reported more than 580,000 full time equivalent (FTE) jobs in he last quarter of 2010. The way jobs are reported by recipients makes it difficult to determine the exact impact of ARRA on jobs.

ARRA recipients report work-hours that were paid for out of the ARRA funding. In the case of an infrastructure project, these work hours might involve construction trades, construction management, engineering design and oversight, and other services (legal, environmental, and more). The nature of these jobs means that the people may be working part-time on ARRA projects while working part-time on other projects, or temporarily work full time on an ARRA project. It is easy to add up the hours and calculate an FTE. It is difficult to know if any of these jobs were created ARRA, or if they might have ended except of ARRA, or might not have been affected.

This type of reporting has a built-in decline as ARRA money is spent down and projects end. Reported ARRA-related jobs is already declining in the SRF programs. ARRA-related jobs reported from SRF programs peaked in the Spring of 2010 and have declined since. Some foresaw a post-stimulus jobs drop even as it was just getting off the ground.

The author is an example these features of jobs reporting, ARRA work having accounted of about a quarter of an FTE in relation to him over the last 19 months. It’s impossible to say what, if any, other work the author may have done if not involved in ARRA projects; he’s glad to have good projects from wherever they come. When he transfers his effort to other work, hopefully, over the next year or so, his hours reported for ARRA will decline and end.

In addition, only some of the ARRA-funded programs are required to report jobs. Those that report jobs only have to trace them so far, to primary contractors and their subcontracts. It is a practical impossibility to count the jobs created or retained by such a program.

Even so, CBO made a go at estimating it. They estimate that ARRA increased the number of people employed by between 1.3 million and 3.5 million in the last quarter of 2010.

CONSTRUCTION COSTS
In the years before ARRA, construction costs had been rising more rapidly that prices the rest of the economy. Bucking that trend, GAO reported that many ARRA-funded projects were receiving bids that were lower than expected. The author has heard from water utilities and state revolving fund programs that a similar trend is occurring in drinking water and wastewater projects.

The thought is that the recession has made the environment very competitive and more bidders are going after each job. In response, contractors are taking minimal profits in order to get projects and stay afloat until the economy recovers. The Associate General Contractors of America has even suggested that contractors have bid projects at less than cost for that purpose.

This drop in bid prices is a reflection of the economic environment, not a response to ARRA. The touted “bid savings” that have ostensibly allowed the ARRA dollars to stretch farther have provide the same benefit to all the other money spent on construction.

MACROECONOMICS
CBO estimates that ARRA increased the gross domestic products (GDP) by between 1.1 percent and 3.5 percent in the last quarter of 2010.

FEDERAL DEFICIT
CBO estimates that the ARRA will increase budget deficits by $821 billion between 2009 and 2019. They estimated 70 percent of that, approximately $575 billion, was realized by the end of September 2010.

REFERENCES
The following references were used in the preparation of this review of ARRA.

Congressional Budget Office (CBO). Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2010 Through December 2010. Washington, DC: CBO, 2011.

-----. Public Spending on Transportation and Water Infrastructure. Washington, DC: CBO, 2011.

Cooper, M. Companies pretty up prices to win stimulus projects. New York Times. March 28, 2009.

Farley, R., & Grabell, M. ProPublica and PolitiFact test Obama claims on stimulus. ProPublica. Nov. 10, 2010.

Fields, G. Job cuts loom as stimulus fades. Wall Street Journal. Dec. 1, 2009.

Government Accountability Office (GAO). Recovery Act: Funding Uses for Transportation Infrastructure Projects, but Some Requirements Proved Challenging. Washington, DC: GAO, 2011.

-----. Recovery Act: Funds Supported Many Water Projects, and Federal and State Monitoring Shows Few Compliance Problems. Washington, DC: GAO, 2011.

-----. Recovery Act: One Year Later, States’ and Localities’ Uses of Funds and Opportunities to Strengthen Accountability. Washington, DC: GAO, 2010.

Smart Growth America. Recent Lessons from the Stimulus: Transportation Funding and Jobs Creation. Washington, DC: Smart Growth America, 2011.

The following references are offered for those interested in additional information on ARRA.

Infrastructure Watch (blog). Coverage of infrastructure economic stimulus. May 14, 2009.

-----. Coverage of infrastructure in economic stimulus. Apr. 14, 2009.

-----. Government Accountability Office watches Recovery Act implementation. August 23, 2010.

-----. Infrastructure & recovery news. Oct. 8, 2010.

-----. Infrastructure & stimulus news. June 17, 2010.

-----. Infrastructure economic stimulus in the news. July 1, 2009.

-----. Infrastructure stimulus. Jan. 27, 2011.

-----. Recovery Act and infrastructure in the news. Jan. 26, 2010.

-----. Recovery Act and infrastructure in the news & elsewhere. Aug. 1, 2009.

-----. Recovery Act and infrastructure news. May, 11, 2010.

-----. Recovery & stimulus news. Mar. 25, 2011.

-----. Show me the money: Stimulus & infrastructure news. July 7, 2010.

-----. Summary of transportation stimulus oversight findings. Sept. 27, 2009.

-----. USDOT redirects high-speed rail stimulus away from slow states. Dec. 21, 2010.

McNamar, T. Profiles from the recession. Blueprint America (blog). Sept. 15, 2010.