Unions: State Slow To Spend Stimulus Funding

HARTFORD (AP) — Some Connecticut labor leaders and construction industry representatives are complaining that the state has gotten off to a slow start in using hundreds of millions of dollars in federal stimulus to jump-start transportation projects.

With summer winding down, they say it’s clear any significant job creation won’t happen until 2010.

“Frankly, it’s lost,” Don Shubert, president of the Connecticut Construction Industries Association, said of the construction season. “You won’t see the impact that everyone anticipated with this [federal stimulus] bill until next year.”

Legislation authorizing the federal stimulus package passed in February.

Of the 33 Department of Transportation earmarked for the federal funding, contracts have been awarded for 12, agency spokesman Judd Everhart confirmed last week. Of those, most are under way, such as $70.8 million worth of improvements to the Merritt Parkway in Trumbull and Fairfield, and $70.6 million to reconstruct an Amtrak bridge along Route 1 in Branford.

But some of the 12 are still in the early stages of site preparation, such as relocating gas and electrical lines, and the major work has not yet begun.

A draft August 12 memo to Governor M. Jodi Rell shows nine of those projects have created 48 jobs. Matthew Fritz, a special assistant to the governor who is overseeing the more than $1.22 billion in federal stimulus that Connecticut is set to receive, said the figure is now probably closer to 100 jobs.

Charles LeConche, business manager for the Connecticut Laborers District Council, called the jobs figures “a disgrace.” He said there are hundreds of contractors across the state who are out of work and waiting for these stimulus projects to begin.

Many, he said, are worried they haven’t worked enough hours this year, given the economic downturn and lack of jobs, to continue qualifying for union health insurance.

“How do you pick up a COBRA benefit if you’re not working?” asked Mr LeConche, referring to the government program that allows workers to keep their insurance for 18 months after they leave jobs if they pay the premiums.

Mr Fritz said he’s aware of the complaints about slowness, but said DOT has done a good job of navigating the complex federal approval process, putting projects out to bid and awarding contracts. DOT has also been helping regional planning organizations, who aren’t familiar with the federal rules, seek funding for local transportation projects.

“We’re on the cusp of a great deal of activity. I don’t think it’s taking long at all,” he said. “I think the word stimulus has created this misconception in people’s heads that this was going to be instantaneous.”

Mr Fritz said there’s been some frustration with the process because the federal funding requirements for these projects — which are being entirely paid for with federal money — are very different from the state’s typical funding requirements.

“I think there’s been a learning curve for folks, for everybody,” Mr Fritz said.

Members of the General’s Assembly’s Transportation Committee, who’ve heard the complaints about slowness, scheduled a public hearing for Wednesday at the Legislative Office Building to get an update on the transportation stimulus money and how it’s being spent.

“I’ve been getting mixed reviews on where we’ve been on the capital projects,” said Senator Donald DeFronzo, D-New Britain, the committee’s co-chairman.

“We’re expecting that we will get, hopefully, a project-by-project analysis of the status of projects that were authorized and committed to by the governor,” he added.

Of the $1.22 billion in total federal stimulus to Connecticut, $302 million has been earmarked for road and bridge work, as well as “transportation enhancement projects” such as a greenway with trails in Torrington and a linear park in Southington. Out of that $302 million, $90 million is set aside for the regional planning agencies.

The rest of the stimulus money is being spent on myriad programs and projects, such as $74 million to boost unemployment checks by $25 a week; $403 million for Medicaid programs; $21 million for food assistance to the needy; $35 million for public housing projects; $24 million for energy efficiency projects; and $13 million for police officers.

Mr Fritz said many of those other projects, such as high speed rail, transit, and alternative energy initiatives, also provide job opportunities for the construction industry, now and in the future.

“There has to be some more patience out there,” he said. “There are jobs that are happening. There clearly is work that’s getting under way.”