Please note that Bob Bestani is now going to be a regular contributor to the ‘Grok – giving us a bit academic outlook than what Doug and I can. We are thrilled to have him on board!
Washington’s Great Bait and Switch
In a period when the nation’s trust in government is at a low point, one would think that the new Administration and especially the Congress would at least make an effort at keeping their word. Sadly this was not to be in the largest and most important action they have taken to date – the economic stimulus package. They sold the stimulus package as one that was largely oriented towards the infrastructure and other important public works to rebuild the nation’s crumbling physical base. What emerged was anything but.
Analysts at the Engineering News-Record (ENR) have just finished sifting through the 1,000 page bill that was used to frame the $787 billion in stimulus package – something the House of Representatives neglected to do. What emerged from this careful analysis shows that the stimulus package just approved by the Congress contains merely 16.5% of spending for infrastructure projects.
For all the reasons listed in previous articles by this author, this action is bo th tragic and misguided. At a time when the country’s infrastructure is in need of roughly $2 trillion in new spending, $130 billion is merely a token effort that we will long regret.
Here is how it breaks down according to ENR:
TRANSPORTATION [$49.3 billion]
- Highways: $27.5 billion
- Transit: $8.4 billion
- New discretionary grant program: $1.5 billio n for highways, transit, rail, seaports, other projects. U.S. Dept. of Transportation will choose which projects will be funded.
- Airport Improvement Program construction grants: $1.1 billion
- Rail: $9.3 billion, including $1.3 billion for Amtrak, $8 billion for high-speed rail
- Port, transit, rail security: $300 million
- DHS/Transportation Security Administration: $1 billion to procure, install airport explosives-detection, baggage-scanning equipment
- Coast Guard, bridge alterations: $142 million
- Coast Guard, ac quisition, construction, improvements: $98 million
DEFENSE/VETERANS [$7.8 billion]
- VA: $1.25 billion for hospital and other medical facility construction and upgrades
- DOD: $4.24 billion for "facilities sustainment, restoration and modernization," includes energy-efficiency improvements, plus repair and modernization of DOD buildings, including medical facilities.
- DOD: $2.33 billion for facilities projects, including housing, hospitals, child-care centers, other military "quality-of-life" projects.
HOUSING/HUD [$9. 6 billion]
- HUD Public Housing Capital Fund: $4 billion
- HUD redevelopment of abandoned and foreclosed homes: $2 billion
- HUD energy retrofits, "green" projects in HUD-assisted housing projects: $250 million
- HUD Community Development Block Grants (housing, services, infrastructure): $1 billion
- HOME investment partnerships: $2.25 billion
- Lead-paint abatement: $100 million


). What a meeting! Many people spoke their piece, the likes of which hasn’t been heard for quite some time. One business owner stated that this unplanned, unexpected, and unbudgeted action means a $3,000 tax bill. Said another hapless taxpayer,