Stimulus Monies Slow to Arrive
Kegler Brown Construction Newsletter June 1, 2009
During the past year, the construction industry has suffered tremendous job losses perhaps unparalleled in the history of the industry and more dramatic than just about any other industry segment. Therefore, the industry was relieved to see the American Recovery and Reinstatement Act pass and commit billions of dollars to infrastructure improvements. However, that relief has been slow to arrive, particularly in Ohio.
While 92% of the federal stimulus dollars allocated to transportation has been committed nationwide, only 50% of the dollars allocated to Ohio have been approved so far. And of those approved Ohio projects, virtually none of the contract dollars have percolated down to the contractors to date. It is hoped that this process can be accelerated so that work can actually proceed on much-needed projects in 2009. State transportation departments that do not timely use the federal funds will lose them to other states.