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Some projects raise question: Where's the stimulus?

As President Obama moves to accelerate the flow of federal funds intended to rev up the economy and energy efficiency, public officials are voicing concerns about the merit of some plans.

June 14, 2009|Peter Nicholas

In the competition for the limited stimulus money, the council awarded less than $300,000 to a company that wants to open a solar-energy-panel manufacturing plant that would create 360 jobs by 2011, according to city records.

Because the solar plant didn't get more funding, its chief executive officer, Joel Cannon, said he wouldn't be able to open the plant in Minneapolis.


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There was one dissenting vote on the council. Councilman Paul Ostrow said the theater wasn't creating enough jobs to qualify for stimulus money, whereas the solar-energy plant "clearly fit the president's goals. . . . It was a home run."

Federal guidelines say that stimulus money may not go toward "recreational facilities that serve a predominantly higher-income clientele."

An official with Minneapolis' Shubert Theater, Colin Hamilton, rejected the idea that dance appeals mostly to an affluent audience.

"It's true that anyone who can afford a $12 ticket has identified himself as slightly above some means," he said. "But if you look at us against other art forms, dance on affordability basis is one of the most accessible you'll find in this community."

Communities get stimulus money largely through automatic formulas, which include such factors as population, or in some cases competitive grants. The federal government reviews applications. Certain projects are banned, including swimming pools, golf courses, zoos, aquariums and casinos.

Demand for stimulus money is intense. And with cities and towns exhorting federal officials to release the money as quickly as possible, some projects may not get adequate vetting.

Vice President Joe Biden conceded as much, saying earlier this month: "There are going to be mistakes made. . . . We know some of this money is going to be wasted."

In some cases, the stimulus is merely substituting one pot of government money for another.

The Obama administration released a report marking the 100-day anniversary of the stimulus program called, "100 Days, 100 Projects." One project mentioned was a $2-million award to a contractor to improve sewers in Portland, Maine.

City officials said the aging system was causing raw sewage to seep into the water supply. But the project was going forward in any case.

Had no stimulus funds come available, the city would have obtained a loan from the state. City officials said that because of the stimulus, Portland now has more money available to take on other projects.

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