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Highway spending isn't the stimulus it was envisioned to be

Only a third of the 5,600 road projects approved by Washington under Obama's Recovery Act have been given the go-ahead for construction.

July 20, 2009|Don Lee

WASHINGTON — In February, when Congress approved President Obama's mammoth plan to stimulate the economy, transportation projects were supposed to be among the fastest-acting pieces of the $787-billion package.

All 50 states moved quickly to qualify for their share of the money. But since then the pace has slowed considerably, particularly in California and Florida, where the effect of the economic crisis has been especially severe.


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As of July 10, more than 3,600 of the 5,600 road projects approved by Washington -- including six of the 10 largest approved projects -- had not been given the green light to start construction.

"What we're seeing is a significant level of bidding activity," said Anne Lloyd, chief financial officer at Martin Marietta Materials, a nationwide supplier of stone, asphalt and other construction supplies. "But the big thing we're not seeing is work on the ground."

The reasons are many. One is the time needed to get heavy equipment and crews ready for jobs. Also, overburdened state officials have sometimes had trouble sustaining the early momentum.

Even where projects have begun, they haven't always brought with them as big a burst of hiring as might be expected.

In southern Louisiana, engineer Kevin Charrier is leading construction of a $33-million, 160-foot-long bridge across Bayou Lafourche to replace a pontoon bridge long considered unsafe. The project, he said, is benefiting the entire local economy.

"It's definitely a blessing," Charrier said. "We're using the hardware store in the community. We're buying ice from the local icehouse. We're paying local truckers to haul off busted trees."

Yet Charrier hasn't yet hired any new people. Rather, he's brought on an initial crew of about a dozen veterans from another job nearby.

"If we have people who have experience, we would rather work them overtime," he said, "not that we don't want to train or hire new people."

The U.S. Department of Transportation estimates that stimulus-funded highway projects directly saved or created as many as 6,000 jobs through May, the latest month for which the department has data.

Federal and state officials expect the pace of construction -- and hiring -- to pick up substantially in coming months.

If they don't, that will only sharpen the howling from critics who, focusing on the soaring unemployment rate, say Obama's economic stimulus package isn't working.

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