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Idaho's making a list for stimulus spending

The preliminary suggestions from state agencies are mostly for roads, but some say health care, higher ed and energy projects should get a look.

BY BILL ROBERTS - broberts@idahostatesman.com

Published: 12/13/08


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ADDITIONAL INFORMATION

Idaho economic outlook: 'Pain'

Idaho will likely lose another 13,500 nonfarm jobs next year because of a state economy that's in its worst shape in a quarter-century, the state's chief economist warned Friday.

"In terms of the economy, what we're going to be experiencing is pain," said Mike Ferguson, Gov. Butch Otter's chief economist. The state is in its "worst economic experience" since the early 1980s.

The state's nonfarm work force - which has shrunk about 1.7 percent since October to 646,400 - is expected to decline by another 2.1 percent in 2009, even with any stimulus package.

The Associated Press

State, federal payments to unemployed Idahoans set record

A record $8.3 million in regular state and federal extended unemployment benefits were paid to nearly 32,000 jobless Idaho workers this past week.

The payout beat the previous record of $6.1 million set in January 2003.

And the worst is still ahead - January and February traditionally have the highest unemployment. Department analysts expect the weekly regular benefit payments to exceed $7 million in early 2009.

This week, the Department of Labor paid more than $6.5 million in regular benefits to almost 25,000 people and another $1.8 million in federal extended benefits to 6,800 more who had exhausted regular state allotments.

"With employers exercising extreme caution about the future, the employment picture remains dim for the next several months," Labor Director Roger B. Madsen said.

In November, the seasonally adjusted unemployment rate was 5.8 percent, three percentage points higher than in January. A record 44,000 people were out of work.

Brad Talbutt

An economic slide

Idaho's ranking for the lowest state unemployment rates

January: 3

Today: 19

Idaho's rank for job growth

January: 21

Today: 47

State's wish list includes some GARVEE road projects

Gov. Butch Otter is among state leaders assembling lists of road, water and communication projects that may benefit from a proposed federal economic stimulus package.

So far, Idaho's list isn't prioritized. But it includes highway construction worth $805 million, some of it directed at sections of Interstate 84 in southwestern Idaho, such as interchanges at Vista Avenue and Orchard Street.

The projects are part of the GARVEE plan initiated under former Gov. Dirk Kempthorne. The state could save money - or not have to borrow as much - if the stimulus package pays for some of those projects, state officials say.

In compiling the list, Idaho agencies included the cost of proposed projects over the first year, how long they'll take to finish and how many workers would be needed.

Some candidates for the money include:

A $6.7 million broadband connection between Riggins and Grangeville.

A $7 million filtration system for the Central Shoshone County Water District, which suffers from bacterial contamination, and $6 million to improve arsenic treatment and drinking water storage in Twin Falls.

$300 million to raise Minidoka Dam near Burley by five feet to increase its storage capacity.

$21 million for a 324-bed expansion of a prison in Boise owned by the state and operated by Corrections Corp. of America. Construction on that project has begun.

The Associated Press

Improved roads.

Refurbished dams.

Prison expansion.

All are part of a preliminary - and growing - list of Idaho public works projects that could one day snag some bucks from President-elect Barack Obama's proposed stimulus package to pour money into states and create 2.5 million jobs nationwide.

But the state should look beyond roads, to health care, higher education, energy and mass transit, say some leaders.

Gov. Butch Otter has received from state agencies a list of 400 projects - 250 for road and bridge improvements - that could put thousands of people to work if they were approved. Total cost: $2.5 billion.

Barack Obama and Democratic congressional leaders agreed Friday to a $500 billion economic stimulus package that they want to pass next month even before Obama takes office.

Democratic leaders reached a tentative deal to seek a half-trillion dollars to create jobs and spur economic recovery, with more than one-third of it funding "shovel-ready" infrastructure projects, aides said.

In anticipation of possible stimulus money early next year, Otter asked state agencies to submit a list of ready-to-go projects that require little or no additional planning.

Otter's staff permitted the Idaho Statesman to review the list, but did not release a copy because it is considered a preliminary working document.

Local economists and business people say the Idaho emphasis on transportation projects makes sense, if they can get people to work quickly.

Idaho is isolated from many markets, and spending money to improve roads, even railroads, could help close the gap and better position the state for commerce when the recession ends, said Don Reading, a Boise economist.

"Idaho, in an economic sense, always had a transportation disadvantage," he said.

Improved roads are also a priority for Otter, who has proposed increases in the gas tax and vehicle registration fees to fix the state's highways.

But more could be done.

Democrat Walt Minnick, 1st District congressman-elect, agrees with the need for improved roads. But stimulus money should be considered for education, health care and help for people struggling with mortgages, he said.

"We ought to take a look at that," Minnick said Friday.

Mass transit should be considered, too, said Reading. Transit adds to quality of life - a trademark image for Idaho, he said.

Better transit would mean "people who live here and want to get to work (won't get) stuck on the freeway all the time," Reading said.

State officials aren't sure exactly what the final federal stimulus plan will look like - or even if there will be one. But early indications are that Obama and Democratic leaders are looking for projects to start quickly. That's not likely to offer an immediate boost to mass transit, because big projects like light rail require years of planning.

The focus on transportation projects in Washington, D.C., and Idaho doesn't mean that some other worthy projects might not also get money.

Among the projects on the state list is expanding broadband capability in rural areas.

Broadband is a strong investment for the future, said Bob Lokken, a Boise entrepreneur and retired Microsoft executive.

Expanding broadband can help schools bring curriculum to the classroom, get patients in rural areas a diagnosis from distant hospitals, and help businesses get access to computer programs they could ill-afford to buy.

"It can make a big difference to education and a very large difference in the future of health care," Lokken said.

Bill Roberts: 377-6408

The Associated Press contributed to this story

The Associated Press

Gov. Butch Otter is among state leaders assembling lists of road, water and communication projects that may benefit from a proposed federal economic stimulus package.

So far, Idaho's list isn't prioritized. But it includes highway construction worth $805 million, some of it directed at sections of Interstate 84 in southwestern Idaho like interchanges at Vista Avenue and Orchard Street. The projects are part the GARVEE plan initiated under Gov. Dirk Kempthorne. The state could save money - or not have to borrow as much - if the stimulus package pays for some of those projects, state officials say.

In compiling Idaho's list, Idaho agencies included the cost of proposed projects over the first year, how long they'll take to finish and how many workers would be needed.

Some candidates for the money include:

A $6.7 million broadband connection between Riggins and Grangeville.

A $7 million filtration system for the Central Shoshone County Water District, which suffers from bacterial contamination, and $6 million to improve arsenic treatment and drinking water storage in Twin Falls.

$300 million to raise the Minidoka Dam near Burley by five feet and increase its storage capacity.

$21 million for a 324-bed expansion of a prison in Boise owned by the state and operated by corrections corporation of America. Construction on that project has begun.

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