Economist: Effect of Stimulus Dollars Months Off

Federal stimulus dollars are starting to roll into Georgia. But it could be a while until the money helps the state’s economy. Funds from the American Recovery and Reinvestment Act are ramping up state projects like making buildings more energy efficient to building roads.

They’re creating jobs and that means more tax dollars. But it could be months until we see its effect on revenues.

"Part of it is the lag when the cash comes in and it shows up in paychecks and spending," said professor of Economics at Mercer University Roger Tutterow, "and then of course there’s a lag between when that occurs and the state actually gets their cuts and reflects it in their tax revenue collections."

Case in point, the Department of Transportation. It got $62 million in May, and the first of 41 projects just started last week--- workers began repaving a road south of Atlanta. The project allowed a state contractor to keep 25 employees and create 3 new jobs. DOT officials do expect the remaining 40 projects to begin this month.

Officials Get First Road Stimulus Project Rolling

The first of hundreds of road projects injected by federal stimulus dollars got rolling today in Georgia.

A four-mile stretch of highway in Hapeville near Atlanta’s airport is the inaugural project. The resurfacing work represents more than $900,000 of the state’s transportation stimulus share. Once all projects are allocated, over $900-million will be used in work across the state.

State and federal transportation officials at Tuesday’s press conference trumpeted the creation or preservation of hundreds of jobs with the stimulus. But Governor Sonny Perdue says the state needs to have a long-view plan on managing budget issues once the well of stimulus money runs dry:

"If you become dependent on them, there are going to be tough decisions in the future. So we’re trying to manage state government in a way of transition—using these federal stimulus funds, but hopeful that our state economy will recover soon."

The rollout of additional road projects continues over the next few weeks and into the fall. Thus far, a combined $119-million in work has been awarded.
State officials say another $250 million will soon be certified to round-out Phase One of money from the American Recovery and Reinvestment Act. By fall, it's expected Phase Two money to be awarded will total $370 million.

More Road Projects Get Fed Money

Governor Sonny Perdue has certified another 51 state road projects for federal stimulus money. The new round of work stamped for the go-ahead includes some needed bridge repairs, resurfacing projects, and another critical portion of the Fall Line Freeway bypass project in Wilkinson County. So far, Perdue has certified more than 100 road projects statewide, which represents 95-percent of federal funds required to be spent by the end of June.

First Round of Stimulus Money Approved for GA Road Projects

Governor Sonny Perdue has certified the first batch of federal stimulus money aimed at road and bridge projects in Georgia. The amount of $207 million is a portion of the total of more than $900 million the state is slated to receive.

Perdue says money is targeted for some of the most 'in need' projects in Georgia.

"This first batch of projects includes some badly needed bridge repairs, resurfacing projects on highways with some of our lowest pavement ratings and two widening projects that will improve congestion and safety and spur economic activity."

About half of the funds represented in these projects will be spent in parts of the state considered "economically distressed areas."

Perdue's office says another round of stimulus money for transportation projects in the state could be certified by the end of June.

State DOT Board Preps First Round Of Projects

State Transportation Board chairman Bill Kuhlke called it "a good day." The board Thursday approved a first slate of projects for bidding--worth more than $500-million. With a big dose of federal stimulus money on the way to Georgia, the board has jumped on trying to schedule projects. In the end, Georgia is expected to use more than $900-million in federal stimulus funds for road, bridge, and other infrastructure work. Contracts will be awarded beginning in April with work expected to start in June. However, Governor Sonny Perdue wants to see the list first, before signing-off for the go-ahead.