Infrastructure Upgrades

Midwest Hunts Stimulus Funds As Though It’s Chasing Twisters

By Craig Barner and Paula Widholm

A fitting complement to tornado season, Midwest agencies are swiftly plowing forward with plans for federal stimulus dollars.

With trade workers in the background, Pete Rahn, director of the Missouri Department of Transportation, announces what was reportedly the first federally funded stimulus project nationwide, an $8.5-million bridge rehab in the central part of the state. (Missouri Department of Transportation)

For instance, Missouri started what is reportedly the first stimulus-funded project in the nation—the $8.5-million replacement of the Osage River Bridge—on Feb. 17, the same day the $787-billion American Recovery and Reinvestment Act was approved by President Obama.

Governmental officials and four contractors assembled near the decrepit bridge in Tuscumbia, which is halfway between Kansas City and St. Louis, with a TV to ensure the bill was law, says Kristi Jamison, a spokeswoman for the Missouri Department of Transportation. Once they saw that Obama had signed the authorizing legislation, bids were given to members of the Missouri Highways and Transportation Commission who were present.

After the commission officials conferred among themselves, they awarded the project to the Kansas City, Kan., office of Atlanta-based APAC Inc., the lowest bidder. A check was presented, and workers swung into action by cutting steel on the old bridge and digging holes for its replacement.

The time between the signing of legislation and the start of work was about 10 to 15 minutes, Jamison says. Three other projects also funded by stimulus dollars started the same day in the Show Me State.

“This is about putting people to work,” says Pete Rahn, MoDOT director. “For us to sit and let bureaucratic processes slow us down is contrary to the intent of stimulus.”

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In November, or four months before ARRA was law, MoDOT went into planning because of the likelihood of the legislation, Rahn says. It invested $125 million in state funds—for environmental clearances, the purchase of right-of-way and similar things—to get some projects shovel ready and began the process that led to 208 projects being identified as shovel ready. They are also required to meet federal regulations, including contracting requirements and air quality rules.

“Had there not been a stimulus plan, we would have spent money for projects that would have ended up on the shelf,” he adds.

Indiana also is being aggressive by naming the second-highest elected official in the state, Lt. Gov. Becky Skillman, to chair a task force to coordinate use of stimulus dollar by all agencies.

“We’ve released a February and March listing of projects that will begin now in addition to our regular projects,” Skillman says.

In February, the Indiana Department of Transportation opened a letting for 27 projects valued at $39 million; in March, there was letting for 29 projects valued at $43.6 million.

“Every month we’ll be doing letting for AARA-funded projects, in addition to our regular business,” says Bruce Childs, a spokesman for the InDOT.

The act requires that half the stimulus funds be obligated by June 30 and all money by March 2, 2010. Projects are expected to be complete in three years.

Billions for Illinois Construction

Because of its population, Illinois scored the biggest pot in the region, $9 billion. Of that, nearly $1.6 billion will be spent on infrastructure, including $935 million for highways and bridges, $371 million for transit, $96 million for modernizing Metra and Chicago Transit Authority rail lines and $177 million for clean water. The remainder will be used in education, housing, law enforcement and other areas.

As in Missouri and Indiana, ARRA is sparking construction of highways and bridges in the Land of Lincoln.

In March, engineers with the Illinois Department of Transportation had identified approximately $693 million in projects that were to be shovel ready for a special letting in early April, allowing work to begin in late May or early June. The projects are beyond those in IDOT’s Highway Improvement Program.

The projects were virtually designed with all environmental clearances completed, right-of-way acquired and minimal utility conflicts. While the list is larger than expected in the first wave of funding (approximately $400 million), it will allow Illinois to be in a position to spend any funds redistributed from other states.

“It will help move forward millions of dollars of needed projects and help jump start Illinois’ stagnant construction industry,” says Paris Ervin, an IDOT spokesperson. “However, it does not address the billions of dollars in infrastructure needs on both the state and local level.”

Filling Planning Holes

Jennifer Morrison, managing director of the Transportation for Illinois Coalition, an advocacy for transportation, says the federal stimulus money is a small part of what needs to be invested.

“It’s one-time money that will go a little way toward addressing some of the maintenance, but in perspective of overall need, it’s not that much money,” she says.

An assessment completed in 2006 found that Illinois needed to invest $42.4 billion—$23 billion more than what’s currently being spent—over a five-year period for all modes of transportation: highways, transit, passenger and freight rail and small airports.

“The federal stimulus provides a little more than $1 billion for highways and transit combined; it’s helpful but it’s very small in context,” Morrison says. “Without significant new investment, the condition of the roads will decline dramatically, and there won’t be new, expanded lanes.”

MoDOT’s Rahn agrees that the stimulus money is temporarily filling a hole. He says his agency has averaged $1.4 billion in recent years and had planned to spend only $560 million in 2010 prior to ARRA being approved.

“So throw in $500 million from ARRA, and it’s still a smaller program than we’ve had in the last couple years,” he adds.

The Wisconsin Department of Transportation will be letting its first wave of funding, about $300 million, at the end of April, allowing work to begin on 47 state highway and bridge improvement projects across Wisconsin. About $100 million in federal stimulus dollars will be applied to the reconstruction of Interstate 94, which runs between Milwaukee and the Illinois line.

More than Roads

Other state agencies are also lining up plans for their share of the stimulus dollars, and anyone can suggest a project at Web sites set up by the states (see Useful Sources). As of early March, more than 2,000 submissions have come to Illinois’ Web site from companies, residents and local government officials, according to Ashley Cross, spokesperson for the state.

Moreover, the focus will be on more than roads, such as water management.

In Wisconsin, “municipalities will be able to complete wastewater projects more quickly and for reduced financing costs,” says Susan Crawford, administrator of the division of enforcement and Wisconsin Department of Natural Resources. Funds will be used as grants or for the forgiveness of principal.

Typical projects include improvements or upgrades of wastewater plants, sewer systems or basic water infrastructure repair. The emphasis will be on green infrastructure, water efficiency, energy efficiency and environmentally beneficial project design.

“We expect to have our application to the EPA by the end of March,” Crawford says. “The EPA will award grants to the states for us to distribute by the end of April, and we should start getting funds out the door very soon after that.”