Over the past week, a clearer picture is emerging of what the stimulus bill will pay for in Michigan and in Grand Rapids specifically. However, full project lists are not yet available and full disclosure of spending by states is still months away.
Grand Rapids Projects Receiving Funding
- $13 million for Grand Rapids-area road projects
- $1.5 million to reconstruct part of Leonard Street
- $1.5 million to resurface Chicago Drive in Ottawa County
- $339,000 to reconstruct part of Lake Drive SE in East Grand Rapids
- $1.1 million to resurface part of Patterson Avenue SE in Kentwood
- $907,000 for resurfacing part of Burlingame Avenue SW in Wyoming
- $7 million for expansion of The Rapid bus operations center
Governor Granholm has also said that the stimulus bill will fund a third lane on I-96 in downtown Grand Rapids.
The Press has also reported that stimulus funding likely will not pay for school modernization and construction projects for the Grand Rapids Public Schools.
Problems with Jobs Estimates
PropPublica–an independent organization that provides “investigative journalism in the public interest”–has challenged the administration’s claims on job creations, including the notion that Michigan will gain 109,000 jobs statewide, including 22,000 in West Michigan.
For example, it says that the state-by-state job estimates released by the White House are questionable, as they rely on estimates and multipliers. The organization says that the White House’s data should be looked at with skepticism.
Communities in Michigan have submitted over 16,000 projects for funding, for a total of $59 billion. This of course exceeds Michigan’s share of the stimulus, but the list is available for review online. Governor Granholm’s office has also cautioned that many of the projects will likely be immediately rejected because they do not meet the requirements.
The Center for American Progress has broken down how much Michigan will receive in each of the stimulus areas:
- Weatherization Assistance Program – $248.8 Million
- State Energy Program – $83.7 Million
- Energy Efficiency and Conservation Block Grants – $92.1 Million
- Highway Infrastructure Investment – $847.2 Million
- Transit Capital – $134.9 Million
- Clean Water State Revolving Fund – $171.5 Million
- Drinking Water State Revolving Fund – $69.2 Million
- Title I Grants – $522.3 Million
- IDEA, Part B State Grants – $432.8 Million
- Child Care Development Block Grant – $58.6 Million
- Head Start – $21.9 Million
- Pell Grants – $531 Million
- WIA Training and Employment Services – $196.6 Million
- UI Benefits Extension – $1.6 Billion
- Temp. Assistance for States with Advances – $61.2 Million
- UI Modernization Act – $99.1 Million
- Neighborhood Stabilization Program – $134.4 Million
- HOME Investments Partnership Program – $64.7 Million
- Public Housing Capital Funds – $53.1 Million
- Emergency Shelter Grants – $55 Million
- Community Development Block Grants – $36.3 Million
- Food Stamps – $813.3 Million
- Child Support Enforcement – $104.1 Million
- Seniors, Disabled Vets, and SSI – $494.1 Million
- Community Services Block Grant – $36.8 Million
- State Fiscal Stabilization Fund – $1.6 Billion
- Medicaid / Federal Medicaid Percentages – $2.5 Billion
- Byrne Justice Assistance Grants – $67.8 Million
Additionally, tax cuts in the stimulus bill will allegedly save taxpayers money:
- Making Work Pay – $3.9 Billion
- EITC Increase – $155.5 Million
- Child Tax Credit – $516.2 Million
- Recovery Zone Bonds – $328.9 Million
- AMT – $1.8 Billion
However, tax cuts are considered the least effective form of economic stimulus according to many economists, particularly cuts to the Alternative Minimum Tax (ATM).