By Kevin Smith, Pharos-Tribune staff writer
kevin.smith@pharostribune.com
While the debate on the federal economic stimulus package rambles on in the U.S. Senate, local municipalities are readying wishlists of "shovel-ready projects" that might be eligible for federal funds.
The bill's estimated cost ranges from the $820 billion passed by the House Jan. 28 and $827 billion in a compromise crafted by Senate Democrats and moderate Republicans following pressure from President Obama to push the package through.
The bill is expected to be approved by the end of this week.
According to a White House report released on Wednesday, Indiana could see more than $5 billion of the funds which will have to be spent within 120 days of receipt by the state.
Specific details of the bill are still to be determined, but road infrastructure projects are an integral element of the package to get an estimated 79,300 Hoosiers, or 29 percent of the state's unemployed work force, back to work. A House provision that would result in school building renovations was eliminated by the Senate.
Logansport Economic Development Foundation president Skip Kuker is compiling a list of city projects that might be eligible for funding.
Kuker said letters were sent to local administrators as far back as December asking them to prepare lists of projects, no matter how large or ambitious.
He also indicated the region may be eligible for a greater portion of the funds.
"The stimulus is looking to impact areas of higher unemployment," Kuker said. "The Midwest as a whole has a higher incident of unemployment because of the decline of the manufacturing industry ... Every community will be asking for this and we need to be prepared."
Cass County's unemployment rate for December was 8.8 percent, just above the statewide average of 8.2 percent. In figures released Friday, the national rate increased to 7.6 percent in January, the highest rate for 16 years. In the past three months, a total of 1.6 million people nationwide have lost their jobs
Infrastructure projects are likely to receive the bulk of the funds in the federal government's efforts to address the problem.
Cass County Chamber of Commerce president Brian Shafer said that the plan will target repairs on problem roads and previously neglected structures like bridges.
The Indiana Department of Transportation reports that it is likely funds will not require a local match, but every project will adhere to federal guidelines for construction such as right-of-way acquisition, environmental approval and historic preservation.
As shovel ready, any infrastructure project eligible to receive federal funding must be ready for construction in 90 days. If not, the money will be returned to INDOT who is required to spend it in 30 days before returning the funds to the federal government.
Logansport street commissioner Don Crain said that improvements to 18th Street were left out of the street department's plan because of these stipulations.
The city will request funds totaling $2.1 million, though, for paving and curb projects throughout the city as well as a small stormwater project near the cemetery.
"In total, it is more than our year's budget," Crain said.
The county highway department has a wishlist of 34 potential projects that are shovel ready.
These include reconstruction of 300 S. which already has a completed design, and 275 W., the Essroc road. The county also hopes to chip and seal 100 miles of county roads, re-pave 30 miles, including Logansport Road, and fund replacement bridges on 650 N. near Royal Center and on Center Street, on the west side of the town.
"We're hopeful that something on our list will get some funding," project coordinator Jeff Smith said.
Superintendent Steve Easley insisted the wishlist is no more than that, emphasizing that just because a specific project was included that there was no guarantee that it would receive funds, or that construction was anymore likely.
Commissioner Dave Arnold was similarly cautious. He warned against the excessive, often rash spending that stimulus plans invoke and the potential for pork barrel projects.
"A lot of work needs to go into the plan so we're not spending money merely for the sake of spending money," Arnold said. "It should be a well thought out plan."
Logansport Municipal Utilities superintendent Paul Hartman has also submitted a list of projects that have a relatively short turn-around.
The 10 projects, with an estimated cost of $15 million, range from pipe rehabilitation on Melbourne Avenue, West Wabash Avenue and on the Eel River, to the northeast stormwater improvement project and downtown sewer rehabilitation.
"They have all been on the agenda for a while and are things that have to be done," Hartman said. "What the federal stimulus package does is makes the money available so we get can things accomplished without raising rates."
Other areas that could be eligible for federal funds include the Logansport Cass County airport's runway extension project and the city and county parks administration.
Logansport Parks administrator Jan Fawley compared the bill's potential to the works project administration initiative of the 1930s.
The park's wishlist includes replacement restrooms at Riverside and Spencer Parks, upgrades to the skate park at Riverside, construction of spraygrounds in two new city locations, new picnic shelters at Spencer, Fairview and Dykeman, and improving lighting, roadways and signage throughout the parks.
Fawley was also cautious about how much money the department might receive.
"I'll probably only get $100,000," she said.
Kuker said that while the plan is intended to stimulate the economy in the short term, he is also thinking about other projects that may be elevated to the top of the state's list once the stimulus projects are complete. He also did not rule out a second, smaller scale stimulus package.
"Later on, as more projects get flushed through the system, it will move others that we have forward," Kuker said. "When the state comes to those projects we will be ready."