Introduction

On Tuesday, February 17, 2009, Democratic President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). This law provides $787 billion of federally-financed economic stimulus funding through a combination of spending programs and reductions in business and individual taxes.

On Thursday, March 12, 2009, the Republican-led Michigan State Senate created the Senate Federal Stimulus Oversight subcommittee to appropriate our state's portion of the monies. Every Democrat voted against the measure (Senate Resolution 19) because we believe the existing Senate Appropriations committee should oversee the distribution of stimulus funds.

However, Democrats are compelled to participate in the process to ensure the stimulus investment be managed according to federal rules and with all fairness, transparency, and expedience.

The Senate Federal Stimulus Oversight subcommittee held its first meeting on Thursday, March 19, 2009. The next meeting is scheduled for Tuesday, March 24, 2009, at 2 pm, 3rd floor, Capitol Building.

First up for legislative consideration is the transportation portion of the stimulus investment. The Michigan State House of Representatives approved this spending (HB 4582) on Wednesday, March 18, 2009.

IN THE WEEK AHEAD:

The State Senate is expected to render its approval of HB 4582

Transportation Facts & Figure$

$873 million - Michigan's share of transportation funds

$319 million - Amount of transportation monies that Michigan MUST obligate to contractors within 120 days of Pres. Obama signing the ARRA. This federal requirement immediately puts people back to work.

23,000 - Total number of jobs expected to be created or maintained by transportation projects.

16 - Transportation projects included in the first phase of stimulus implementation

April 2, 2009 - Date by which the legislature must pass the transportation bill or greatly slow down the process and increase Michigan's chance of losing funding.

June 28, 2009 - Federally-imposed deadline for transportation contracts to be pledged to contractors or Michigan's money will be redistributed to other states.

Transportation Projects in Detroit

The following projects are included in the 1st phase of stimulus investment. All plans must be contracted by June 28, 2009:

Phase I
Deck Replacement - Seven Bridges over I-96 - $15,500,000
Deck Replacement - Three Bridges over I-96 - $5,000,000
Removal of Railroad Structure - I-96 - $600,000
Deck Replacement - I-96 under Underwood St. - $1,500,000

Total Investment: - $22,600,000

The following projects are included in the 2nd phase of stimulus investment. All plans must be contracted by August 1, 2010:

Phase II
Deck Replacement - Jos. Campeau over Davison Freeway - $2,000,000
Deck Replacement - Goddard over Davison Freeway - $2,300,000
Mill & resurface - Southfield Freeway McNichols to Ford Rd. - $4,016,000
Active Speed System - I-94 EB @ I-96 EB & WB - $850,000
Active Speed System - I-94 WB @ I-96 EB & WB - $850,000
Sidewalk, tree planting, street lights, trash receptacles, bike rack Woodward Ave. I-94 to Euclid St. - $1,588,248

Total Investment: - $11,604,248

The following projects are planned for the 3rd phase of stimulus investment. MDOT officials expect to pay for the work with stimulus funds transferred from other states that fail to meet federal criteria. No contracting deadline has been announced:

Phase III
Paint & patch deck- Charest pedestrian bridge over Davison Freeway - $400,000
Repair three railroad bridges on Fort St. - $700,000
Mill & resurface Michigan Ave. Livernois to Rosa Parks - $10,000,000

Total Investment: - $11,100,000

Transportation Projects in Dearborn

The following project is planned for the 3rd phase of stimulus investment. MDOT officials expect to pay for the work with stimulus funds transferred from other states that fail to meet federal criteria. No contracting deadline has been announced:

Phase III
Resurface Michigan Ave. Outer Dr. to Brady - $4,000,000

Total Investment: - $4,000,000

What You Need to Know

• The federal government requires all projects to be shovel-ready within 120 days of the enactment of the ARRA. This means they have to be vetted, planned, approved and ready to start.
• Stimulus funds cannot be used for maintenance activities such as fixing potholes or removing snow. Monies can only be used for resurfacing, building, or expanding.
• Transportation investments will be awarded through regional groups that represent cities, townships and rural communities.
• The Southeast Michigan Council of Governments (SEMCOG) is the lead organization for Detroit and the Detroit metropolitan area.

Highlights On the Horizon

Here's a snapshot of stimulus investments Michigan will receive:

$962,658,000 - Education
$9,000,000 - Community Development Block Grants
$3,792,000 - Services to the Aging
$134,800,000 - Public Transit
$202,050,000 - Training and Unemployment Services
$244,000,000 - Weatherization Assistance Programs