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Feds' stimulus money: Will Idaho use it or lose it?

Otter is reluctant to take a 'blank check,' a spokesman says, but lawmakers say the state should get in line fast for funds that could build needed projects and put people to work.

BY CYNTHIA SEWELL - cmsewell@idahostatesman.com

Published: 12/11/08


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President-elect Barack Obama is offering states their share of federal economic recovery dollars to start rebuilding America's crumbling infrastructure.

While other states are throwing out their wish lists - some with billions of dollars in proposed projects - Idaho's conservative governor is taking a more cautious, if not skeptical, approach.

"If you are just going to give us money that is going into our general fund, you might as well keep it. That's like giving alcohol to an alcoholic," said Jon Hanian, spokesman for Gov. Butch Otter. "Our governor is very cautious about taking blank checks from the federal government. We do not want to add to this country's problems."

But Idaho Congressman Mike Simpson is urging the state to take advantage of what's coming - he would like to see a stimulus package almost entirely devoted to transportation and infrastructure funding like dam rehabilitation and wastewater treatment.

"In Idaho alone, the state has millions of dollars in projects that are ready to go but are sitting on the shelf because they lack the needed funds," he said. The right plan would "put Americans to work and put a paycheck in their pockets, and it would also address our nation's crumbling infrastructure."

Otter himself has been trying for two years to persuade the Legislature to spend more state taxpayer money on roads.

Plus, state revenues have dropped so much that Otter has ordered 6 percent cut out of every state agency's budget this year and next.

Though Otter hasn't joined the states calling for help, Idaho Transportation Department Director Pam Lowe said her agency is "nimble" and "ready to deliver product" should federal dollars become available.

"Idaho has $805 million worth of projects ready to deliver in 180 days," Lowe said at a meeting to brief key lawmakers this week.

But with what many see as a federal windfall poised to come from Washington, D.C., Senate Transportation Committee Chairman John McGee said he wondered if Idaho shouldn't be more aggressive in identifying the state's infrastructure needs - Utah, for example, has put together a project list totalling $11 billion.

"This is a one-trip pony," the Caldwell Republican said.

If Idaho doesn't find a way to spend the money, other states likely will. Obama said he wasn't going to let the dollars languish when they are intended to help boost the economy.

"We will set a simple rule: Use it or lose it," he said Dec. 6. "If a state doesn't act quickly to invest in roads and bridges in their communities, they will lose the money."

MANY STATES HAVE THEIR HANDS OUT

Even Idaho's Western neighbors are outlining much more aggressive - and costly -proposals.

At a Dec. 2 National Governors Association meeting in Philadelphia, Obama said he would come to states' aid with an ambitious program to build and repair roads, bridges, schools and other public projects. The next day, Colorado, Utah, Washington and other states unfurled their lists of both short-term "shovel-ready" projects - all approved and ready but shelved for lack of funds - and long-term major infrastructure overhauls.

Colorado Gov. John Ritter, a Democrat, said his state has more than 157 highway, bridge, aviation and transit projects, valued at more than $1.2 billion.

Oregon's Democratic Gov. Ted Kulongoski wants to use the federal money to knock out a $650 million backlog of maintenance projects at the state's universities.

Washington state came in with a much more conservative $600 million for short-term road and bridge projects.

And the requests aren't coming just from Democrats.

Utah and Texas - both led by GOP governors - went all out, with need packages totaling $11 billion and $6 billion.

Democrats hope to have legislation ready for Obama to sign when he takes office Jan. 20.

Simpson, who has been talking about the infrastructure needs in Idaho and elsewhere, said Idaho needs to be ready to spend the money quickly if it comes - and to have a plan that outlines how it will help the state's economy.

"We are moving as fast as we can," Otter's spokesman Hanian said.

But until more details come out on the federal plan, he said it is difficult to drill down to specific projects.

"We cannot deliver answers before we know what the questions are," Hanian said.

CRAPO: IDAHO DOESN'T WANT A 'BAILOUT'

Idaho's delegation, like Otter, isn't asking for a federal blank check.

"It is important to understand that Idaho is not seeking federal bailout assistance, but does intend to be prepared if infrastructure funding becomes available," Sen. Mike Crapo said.

Along with roads and other infrastructure, Crapo said he could see money going toward "education and communication needs, particularly those that are aging or need assistance with compliance and safety issues."

A nationwide public works plan could jump start the economy, Crapo said, but it should come without onerous strings attached.

"It is imperative that we focus on creating jobs, cutting spending and lowering the burdens on individuals, families and businesses in order to stimulate real and sustained long-term growth, as opposed to short-term ineffective measures that will simply add to the deficit without providing real relief to Idaho's taxpayers and families," he said.

Cynthia Sewell: 377-6428

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