Washington — Counties suffering the most from job losses stand to receive the least help from President Barack Obama's plan to spend billions of stimulus dollars on roads and bridges, an Associated Press analysis has found.
Although the intent of the money is to put people back to work, AP's review of more than 5,500 planned transportation projects nationwide reveals that states are planning to spend the stimulus in communities where jobless rates are already lower.
One result among many: Elk County, Pa., isn't receiving any road money despite its 13.8 percent unemployment rate. Yet the military and college community of Riley County, Kan., with its 3.4 percent unemployment, will benefit from about $56 million to build a highway, improve an intersection and restore a historic farmhouse.
Altogether, the government is set to spend 50 percent more per person in areas with the lowest unemployment than it will in communities with the highest.
The AP reviewed $18.9 billion in projects, the most complete picture available of where states plan to spend the first wave of highway money. The projects account for about half of the $38 billion set aside for states and local governments to spend on roads, bridges and infrastructure in the stimulus plan.
The very promise that Obama made, to spend money quickly and create jobs, is locking out many struggling communities needing those jobs.
The money goes to projects ready to start. But many struggling communities don't have projects waiting on a shelf. They couldn't afford the millions of dollars for preparation and plans that often is required.
"It's not fair," said Martin Schuller, the borough manager in the Elk County seat of Ridgway, who commiserates about the inequity in highway aid with colleagues in nearby towns. "It's a joke because we're not going to get it, because we don't have any projects ready to go."
The early trend seen in the AP analysis runs counter to expectations raised by Obama, that road and infrastructure money from the historic $787 billion stimulus plan would create jobs in areas most devastated by layoffs and plant closings. Transportation money, he said, would mean paychecks for "folks looking for work" and "folks who want to work."
"That's the core of my plan, putting people to work doing the work that America needs done," Obama said in a Feb. 11 speech promoting transportation spending as a way to expand employment.
Also, Congress required states to use some of the highway money for projects in economically distressed areas, but didn't impose sanctions if they didn't. States can lose money, however, if they don't spend fast enough.
The AP examined the earliest projects announced nationwide, the ones most likely to break ground and create jobs first. More projects are continually being announced, and some areas that received little or no help so far may benefit later. The Obama administration could also encourage states to change their plans.
To determine whether there was a disparity in where the money would go, the AP divided the nation's counties into four groups by unemployment levels. The analysis found that, no matter how the early money is measured, communities suffering most fare the worst:
—High-unemployment counties, those in the top quarter of jobless rates, are allotted about 16 percent of the money, compared with about 20 percent for areas least affected by joblessness.
—In low-unemployment counties nationwide, those in the bottom quarter of jobless rates, the federal government is spending about $89 a person compared with $59 a person in the worst-hit areas.
—In counties with the largest populations, the government is spending about $69 a person in areas with the lowest unemployment and $40 a person in places with the greatest job need.
The analysis also found that counties with the highest unemployment are most likely to have been passed over completely in the early spending.
Among them: Wheeler County, Ore.; Steuben County, Ind.; Macon County, Ga.; and Crowley County, Colo.
Many others are getting minimal help in this round: Vermillion County, Ind.; Lapeer County, Mich.; Presidio County, Texas; Tallahatchi County, Miss.
Those counties still will benefit from job creation elsewhere in their states, said Lana Hurdle, a Transportation official overseeing the agency's stimulus money.
"Even if you have to drive to it, it's better than no job," Hurdle said.
Joel Szabat, who also oversees the stimulus for the Transportation Department, said the agency presses states to build projects in struggling areas but does not normally consider how much money is going to each county.
Presented with AP's findings, he said: "I will be going back to ask our folks to do this kind of analysis, the overall amount for the projects."
"Our goal, and I think it is a goal that will be achieved, is that you will see that a fair share of this money will go to these areas," Szabat said.
Obama's plan sends $38 billion to states and local governments for roads, bridges, transit and other infrastructure, about 5 percent of the overall program that also includes money for, among other things, schools, community development, technology, worker training and tax breaks.
All counties will receive some stimulus relief eventually. But the haste voiced by the White House is not reflected in the flow of highway money so far.
"We cannot wait," Vice President Joe Biden said last week when announcing a $30 million transit project in his hometown of Wilmington, Del., where the 7.7 percent unemployment rate remains below the national average. "We're spending a lot of time and money. Why? It's about ... jobs, jobs, jobs, jobs. That's why we cannot wait."
Yet residents of Perry County, Tenn., will have to wait. County Mayor John Carroll said he's disappointed his community, which suffers from 25.4 percent unemployment, won't receive a dime any time soon for its road needs.
"It's pretty easy to draw a connection between the high unemployment rate and the lack of any four-lane highways," he said.
Federal auditors acknowledge they can't yet track the transportation money that is leaving Washington and there is no single list of the thousands of projects planned in each state. For its analysis, the AP used lists of projects approved through March by the Transportation Department and collected lists of stimulus projects that have been announced in 49 states, Puerto Rico and the Virgin Islands.
Federal officials have approved 2,800 projects. The remaining projects on the AP list represent the states' official plans for the money. Only Virginia, which has not announced its plan, is not included.
As the number of projects grows, places like Elk County, Pa., could still be left out because they could not afford the upfront costs needed to put proposals in the pipeline.
"It's all based on this 'shovel readiness,'" said Elk County Commissioner Daniel Freeburg. "That's been our stumbling block."
Elk County surely could use jobs. The once thriving north central Pennsylvania county is home to metal factories that equip the nation's auto industry. Layoffs are mounting.
Freeburg is pinning hopes on getting future stimulus money, such as for energy conservation programs, that will create jobs and rekindle the local metal and lumber industries.
In promoting his plan, Obama went to hard-hit communities such as Elkhart, Ind., and Peoria, Ill., and promised the jobs would come.
"Now, I know that some of you might be thinking, 'Well that all sounds good, but when are we going to see any of that here in Elkhart?'" Obama said. "'What does all that mean for our families and our community?' Those are exactly the kind of questions you should be asking of your president and your government."
Obama kept his promise to Elkhart, which so far is expected to receive $13.7 million, and Peoria, which should receive at least $10.6 million. But other, similar counties have not been so lucky.
For now, laid-off workers in Elk County, Pa., question why they've missed out, while money flows to more prosperous places.
"Why are they helping them?" asked Wendy Cameron, 50, of Saint Marys, Pa., who lost her job in a metal factory last year. She doesn't have health insurance and would gladly take road work. "They're not in need. We are.
"What are these people going to do? Is everybody going to go on welfare? I've never been on welfare. I don't want to be on welfare."
Comments
LJWorld.com doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy. Also, read about banned accounts and harassing comments.
LiberalDude (anonymous) says…
This article makes a good point that the stimulus money isn't going to the people that need it the most but I don't the slant of the article. The money goes to the states who decide where to spend it so the blame for the money not going to the right people should be on the state legislatures. Obama can't control this and I don't like how the article seems to place blame on him.
classclown (Class Clown) says…
Is anyone really surprised?
classclown (Class Clown) says…
Those counties still will benefit from job creation elsewhere in their states, said Lana Hurdle, a Transportation official overseeing the agency's stimulus money.
"Even if you have to drive to it, it's better than no job," Hurdle said
===================================
Unless of course the person is making only enough to pay for the gas needed to get to said job and back home.
jafs (anonymous) says…
It is clearly an unintended consequence of focusing on "shovel ready" projects.
This was intended to get money and jobs into the economy quickly.
If areas that have high unemployment don't have those sorts of projects ready, they won't get as much stimulus money.
Unintended consequences suck!
And, if they hadn't focused on projects that will be available quickly, they'd be criticized for that as well.
yourworstnightmare (anonymous) says…
Clearly those areas that have received the most in investment in infrastructure in the past will receive the most money. This stands to reason, as these areas are where the most activity resides. There is a reason that certain areas have higher unemployment than others, because they had less investment to begin with.
You may not like it, but this is the way of the world.
Liberty_One (anonymous) says…
Why does anyone ever expect these things to actually work? The stimulus bill was never intended to help the poor or unemployed, but was to buy votes and pay kickbacks to big labor supporters. When will people learn that there should be a wall between economy and state? Allowing the state to "manage" the economy inevitably leads to corruption and the perversion of the purpose of government: to protect individual rights.
yourworstnightmare (anonymous) says…
The Preamble to the Constitution of the USA:
"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
kmat (anonymous) says…
I know that everyone wants a job to land in their backyard. Realistically, that isn't going to happen. These people that want to continue to stay in their small towns that were only supported in the past by manufacturing jobs that have long since gone away, need to understand that they will most likely have to move or commute to other areas for work. How many of us in Lawrence have to commute everyday because there aren't jobs to support the population of Lawrence?
Maybe a history lesson is in order. During the Great Depression, thousands picked up and left for areas where they hoped there was work (many in my family included). When times are desperate, you may unfortunately have to move to commute. During the recession of the early 80's (when unemployment was even higher than it is now), my father took a job 4 hours away and commuted home on the weekends. He needed a job and good paying jobs weren't in KC, but were in St. Louis. You do what you have to do.
bear1956 (anonymous) says…
The jobs directly created by road and bridge projects are typically not local. The construction companies go where the work is and their employees follow. The local jobs generated are spin offs of the construction work. The construction workers spend money when in town at the local cafes, bars, gas stations, etc. I've been in this business for 23 years and it is rare for a highway construction worker to live where he/she works.
Mixolydian (anonymous) says…
That's because there are no stimulus funds. These funds are democrat political payoffs and pet projects.
Democrats in Congress have no interest in following these funds, only the contributions and political coin that this bill bought.
A true stimulus bill would have cut payroll taxes to a point that put disposable income in American's pockets and made it it more attractive to businesses to hire. The SBA would have been beefed up to provide greater loans to the engine of our economy, small businesses. There's a whole host of other moves that would tend to stimulate the economy.
Throwing money borrowed from the Chinese to pet democrat projects does not a stimulus make
LiberalDude (anonymous) says…
"That's because there are no stimulus funds."
You're just plain wrong. You have no idea what you are talking about. The stimulus plan has created thousands of jobs and is working. We are emerging from the recession. The stock market is up about 800 points in the past month.
Tax cuts don't work. This was the Bush strategy and it is what Republicans always try. It doesn't work.
notajayhawk (anonymous) says…
LiberalDude (Anonymous) says…
"Obama can't control this and I don't like how the article seems to place blame on him."
Spoken like a true (mindless) acolyte.
If he couldn't control where the money was going, maybe it shouldn't have gone. Spending a trillion dollars we don't have and then saying 'well, we can't control where it went' only makes sense to Democrats (the same Democrats who complained about a lack of controls on the TARP money).
"The stimulus plan has created thousands of jobs and is working."
Maybe you aren't keeping up with current events, 'dude,' but the money is being spent where people were already working (try reading a story before posting about it). Oh, and maybe you haven't heard, but unemployment is still rising, not falling - where are these "thousands of jobs" of which you speak?
georgeofwesternkansas (anonymous) says…
Here in America, we have the finest politicians money can buy...
nickhawk (anonymous) says…
"Throwing money borrowed from the Chinese to pet democrat projects does not a stimulus make"
In fact, some cities, such as Hutchinson, are using the money borrowed from the Chinese to buy Chinese products (Segways)
snap_pop_no_crackle (anonymous) says…
Barry is using the stimulus funds to pay off debts to the unions that supported him.
"In barely four months, Barack Obama has nudged the United States toward a future in which government will be bigger and more assertive -- where taxes will be higher and government unions more powerful -- where legal rights are less secure and contracts more uncertain.
In California, he is pushing a state toward the fiscal edge in order to favour a union ally. At Chrysler, he has put at risk the security of every contract in the country to please another union."
Read the rest at:
http://network.nationalpost.com/np/bl...
think_about_it (anonymous) says…
LibDude says "You're just plain wrong. You have no idea what you are talking about. The stimulus plan has created thousands of jobs and is working. We are emerging from the recession."
The porkulus money involved here won't be spent until 2010. How exactly does that help things now?
Obviously it's the intent of the Mesiah and not the results that attract your slobbering affection toward him.
monkeyspunk (anonymous) says…
Hey Think_about_it, do you have a better plan? Do you have a better plan that will, from less than 1 year from its inception attempt to create an appreciable amount of employment in America? Who else should we give money to? Should we not give any money to anyone? Let everything crumble? Allow our power grid to remain at early 20th century standards? Allow our highway system, (which anyone with any sense understands is the real reason we are such a powerful country) to turn to gravel under our tires?
Conservatives should LOVE this plan. Only projects that are "shovel ready" are funded. That means that money is being allocated to projects ready to go, not requiring funds be wasted on committees and impact studies and other such bureaucratic bull poo. Does Elk County PA have a highway? Does Elk County PA have any industry or facility that does anything that affects the nation outside of Elk County PA. Considering they can't even get their act together to create a plan (much like the critics of Obama's plan), they should be left out in the cold.
Mindless opposition to this is partisan antics that are quickly becoming a thing of the past.
monkeyspunk (anonymous) says…
FYI
http://www.recovery.pa.gov/portal/ser...
feeble (anonymous) says…
A quick look at the Wikipedia reveals that Elk County had ~35,000 residents in 2000, or about 42 residents per mile, spread over 840 square miles. The largest city in Elk County, St. Marys, has a population of around 14,000.
notajayhawk (anonymous) says…
monkeyspunk (Anonymous) says…
"Mindless opposition to this is partisan antics that are quickly becoming a thing of the past."
Mindless dedication to this is partisan antics that are quickly becoming a thing of the past.
*******************************
feeble (Anonymous) says…
"A quick look at the Wikipedia reveals that Elk County had ~35,000 residents in 2000, or about 42 residents per mile, spread over 840 square miles. The largest city in Elk County, St. Marys, has a population of around 14,000."
So screw 'em, right? I thought all you liberals cared about the little folks.