Introduction

On Tuesday, February 17, 2009, 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 believed the existing Senate Appropriations committee should oversee the distribution of stimulus funds.

However, since senate Republicans hold the majority of the vote, the measure passed and the committee was created. Democrats were then compelled to participate in the process to ensure the stimulus investment be managed according to federal rules and with all fairness, transparency, and expedience.

On Thursday, March 26, 2009, the state House of Representatives approved stimulus spending (HB 4258) for several departments including Education, Human Services, Community Health, and Energy, Labor, & Economic Growth. The bill now goes to the Senate Oversight subcommittee.

The State Senate Federal Stimulus Oversight subcommittee approved $873 million in Transportation stimulus spending (HB 4582) on Tuesday, March 24, 2009 - sending it to the larger Senate Appropriations committee that voted out the bill the next day.

On March 26, 2009, the full Senate affirmed the legislation in agreement with the state House that passed it a week earlier. Now the bill is headed to Governor Jennifer M. Granholm for her signature. Once signed, stimulus transportation spending will immediately become law.

To read an analysis of HB 4582 click here.

The timely action of the senate subcommittee insures that Michigan workers will be put to work on road and bridge projects as soon as possible. I look forward to seeing orange barrels and the financial relief they'll bring to our families.

In the week ahead:

• The stimulus oversight subcommittee is expected to review HB 4258 on Tuesday, March 31, 2009, at 2 pm, 3rd floor of the Capitol Building. All subcommittee meetings are open to the public.
• Officials from various state departments and the Office of State Budget are working together to create spending plans. I will update you as those proposals are submitted.

What You Need to Know

• Stimulus funds will be distributed through two methods: the state legislative process and direct allocation to local governments and/or organizations.
• Stimulus spending subject to legislative approval is based on federal formula. Monies sent straight to local authorities are determined by two methods: federal formula or competitive grants.
• There are deadlines attached to some formula-driven dollars. State lawmakers are working hard to appropriate these funds as quickly as possible. These spending bills will be given priority.
• Stimulus funds made available to state or local governments may not be used for casinos, gambling establishments, aquariums, zoos, golf courses or swimming pools.
• Infrastructure projects involving construction, alteration, maintenance or repair of public buildings or public works must be accomplished by using iron, steel and manufactured goods produced in the United States (there are certain exceptions).
• The ARRA requires laborers and mechanics employed by contractors and subcontractors be paid the prevailing wage.
• Environmental reviews required by the National Environmental Policy Act must be completed using the shortest applicable process.
• State and local governments cannot institute preferential hiring guidelines for stimulus-funded projects. Officials must follow federal rules.
• Preferential hiring practices could trigger an enforced return of stimulus funds.

Facts & Figure$ (Formula-Driven Investments)

Transit
$134.8 million - Total amount of transit capital grants Michigan will receive for public transportation.
$109 million - Direct funding to local agencies for urban bus systems.
$37.6 million - Goes to SMART transit system and the metropolitan areas it serves.
$20.2 million - Detroit's share of transit funds.
$25.8 million - Transit capital grant funds that will flow through the state appropriation process for rural transit systems.
$21.9 million - Investment for non-urban bus systems.
$3.9 million - Funding for bus passenger service between Michigan cities
September 30, 2010 - Deadline for transit funds to be obligated or returned to the US Treasury department. *The transit funds listed above can only be used for capital acquisitions, such as bus replacement, not for operating costs.

Education
$400.6 million - Special Education incentive grants
$13.4 million - Handicapped Preschool Incentive grants
$12.3 million - Handicapped Infants and Toddlers grants
$390 million - Disadvantaged Children At-risk funding
$4.1 million - Emergency Food Assistance
*Education funds listed above are also available to public charter schools if they are currently eligible for federal aid.

Transportation Projects in Wayne County

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

PHASE I
Landscaping & ornamental fencing - I-75 Grand Trunk Western RR to East of Connor - $700,000
Patch and overlay three ramps - I-94 at Belleville Rd. - $750,000
Patch and overlay three ramps - I-94 at Haggerty Rd. - $750,000
Patch and overlay - Telegraph Rd. southbound Joy to Plymouth rds. - $7,500,000
Sound wall - I-94 at Telegraph Rd. - $3,225,131

Total Investment: $12,925,131

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

Mill and resurface - Davison Fwy. Oakland to Conant - $13,000,000
Design build/reconstruct - I-275 bikeway phase 1 - $4,000,000

Total Investment: $17,000,000

PHASE III
The following projects are planned for the 3rd phase of stimulus investment. Michigan Department of Transportation 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:

Epoxy overlay - Davison Fwy. at Second, Woodward, Hamilton & John R. - $1,250,000
Pump Station - Schaefer Hwy. at Ford Gate 10 - $1,260,000
Design build/reconstruct - I-275 bikeway phase 2 - $5,000,000

Total Investment: $7,510,000

Highlights On the Horizon

The seven bridges over I-96 mentioned in the first edition of the Stimulus Notes are as follows: Davison westbound to I-96 eastbound ramp over Davison Fwy.

Fullerton Ave. over I-96
Elmhurst Ave. over I-96
Grand River U-turn over I-96 (north of Grand River)
Grand River over I-96
Livernois Ave. over I-96
Livernois Ave. left turn over I-96

The three bridges over I-96 listed in the first edition of Stimulus Notes are as follows:

Davison westbound to I-96 eastbound over I-96
Oakman Blvd. eastbound over I-96
Oakman Blvd. westbound over I-96

The abandoned Conrail structures that will be removed, as mentioned in the first edition of Stimulus Notes, are located at east of Wyoming near Davison.