Stimulus Package Sets Aside $144 Billion for Infrastructure Projects
The $787 billion economic stimulus package, formally the American Recovery and Reinvestment Act, will dedicate almost $144 billion for construction projects to be started no later than Sept. 30, 2010, according to a review of the law by Ken Simonson, chief economist of the Associated General Contractors of America in Arlington, Va.,
Simonson says that transportation projects will get $49 billion--$28 billion for highways; $18 billion for rail and other transit, $2 billion airports)--while $21 billion will go into water and environment projects, $38 billion for private, government and school buildings, and $30 billion in energy and technology projects ranging from alternative energy and weatherization to “smart grid” and wireless/ broadband projects.
The AGC has posted detailed information about amounts, distribution formulas and timetables, state-by-state allocations where available, and limitations at www.agc.org/stimulus. In addition, Simonson believes that “numerous tax provisions should add to demand for construction activity,” such bonds to be used for renewable energy, energy conservation; and modified renewable energy and conservation credits.
However, the stimulus money may not fully offset cuts in state construction budgets. “At least 46 states faced or are facing shortfalls in their budgets for this and/or next year, and severe fiscal problems are highly likely to continue into the following year as well,” according to a new report by the Center on Budget and Policy Priorities in Washington.
Simonson says that transportation projects will get $49 billion--$28 billion for highways; $18 billion for rail and other transit, $2 billion airports)--while $21 billion will go into water and environment projects, $38 billion for private, government and school buildings, and $30 billion in energy and technology projects ranging from alternative energy and weatherization to “smart grid” and wireless/ broadband projects.
The AGC has posted detailed information about amounts, distribution formulas and timetables, state-by-state allocations where available, and limitations at www.agc.org/stimulus. In addition, Simonson believes that “numerous tax provisions should add to demand for construction activity,” such bonds to be used for renewable energy, energy conservation; and modified renewable energy and conservation credits.
However, the stimulus money may not fully offset cuts in state construction budgets. “At least 46 states faced or are facing shortfalls in their budgets for this and/or next year, and severe fiscal problems are highly likely to continue into the following year as well,” according to a new report by the Center on Budget and Policy Priorities in Washington.
By Tom Stundza -- source: www.purchasing.com
