Obama raises the bar on economic stimulus

First, President-elect Barack Obama let it be known that the billions of dollars he intends to spend to revive the economy will come with a firm challenge to states that share in the $650 billion to $850 billion largess: Use it or lose it. Obama, who will be sworn in Jan. 20, wants the money to be spent on projects that are shovel-ready so Americans are put to work immediately.

His employment goal: Preserving or creating 2.5 million jobs over two years.

Vice President-elect Joseph Biden added a warning to members of Congress and governors: The Obama administration will not approve spending on pet projects — pork.

“I know it’s Christmas, and I know it’s the Christmas season,” Biden said, “but President-elect Obama and I are absolutely, absolutely determined that this economic recovery plan will not become a Christmas tree.”

The administration will not go along with congressional earmarks — special-interest projects that representatives and senators attach to legislation — and has provided a broad outline of where the money will be spent: health care, education, infrastructure like roads and bridges, aid to states and energy. Of interest to cities such as Youngstown and Warren with a large percentage of low-and moderate-income residents, the new administration is looking to weatherize 1 million homes, create a paperless health care system, invest in disease prevention and modernize schools.

Projects in the pipeline

But it is the infrastructure portion of the stimulus package that holds out the greatest promise for the Mahoning Valley. Local government and development officials say there are projects in the pipeline that could qualify for the federal dollars and they are working with Gov. Ted Strickland’s administration to make sure the region is not overlooked.

According to a state official, the Ohio Department of Transportation has identified about $2.8 billion in ready-to-go transportation investment, but the agency has yet to hear from Washington as to what limitations or strings will be attached to the money.

Also, ODOT is awaiting an answer to the question of how quickly the money must be spent.

If there is a six-month turnaround period, as some Obama operatives have suggested, Ohio is developing a shovel-ready list of projects for which plans have been completed, engineering started and right-of-way purchased.

The state has identified longer-range projects that would need planning money. It would also like to use federal dollars on the expansion of passenger rail service, a state official said, which would require purchasing rail equipment.

Also in relation to public transportation, Ohio would be willing to provide local agencies with money to purchase buses.

“The projects identified by ODOT are across the state, every corner of the state,” the official said.

Given the Mahoning Valley’s persistently high unemployment rate and the inability of local governments to land federal construction grants because of the lack of matching funds, Obama’s stimulus program appears tailor-made for this region.

There can be no excuse for Mahoning, Trumbull and Columbiana counties not getting more than their fair share.