Jan 22, 2009 4:48 pm US/Pacific
Federal Stimulus Plan May Put CA. Back In Order
SACRAMENTO (CBS13) ―
State lawmakers asked for federal help and now California could get more cash than any other state from a massive economic stimulus plan.
Under a bill that been proposed in the House, California would be loaned nearly $4.5 billion dollars.
Two thirds of those funds would be spent on highways, bridges, public transit and other infrastructure projects. The rest would go directly to local government agencies.
Federal dollars could give California the jump start it needs by creating jobs and starting up roadwork projects that are now on hold. But, transportation officials say it all depends on how the stimulus package is put together.
"The devil is always in the details," says Jim Earp.
As Vice Chair of the California Transportation Commission, Jim Earp knows that $4.5 billion dollars will go a long way, unless the feds deliver it with a bunch of red tape. He says California needs the flexibility to use the money on projects that have already broken ground and may be on hold.
"And we've got plenty of them right here in the Sacramento area. The cost of shutting those down, and then start six or seven next year is just astronomical; throw money down the toilet," says Earp.
The second potential problem – the Feds might ask the state to front the cash, and then they'll be reimbursed. But as we all know, California's pockets are just about empty.
"We don't have the money up front so we really need the Federal Government to come in and apply the grant money right up front so we can get these projects started and put people to work," Earp explains.
State Transportation officials will try and provide their input as Federal lawmakers put this plan together. The bill is expected on the House floor next week.
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