Thursday, May 28, 2009

Healthy states, not weak states, getting stimulus?

Here in Oregon the economic picture is gloooooomy. Reading this in USA Today makes it gloomier, with respect to stimulus getting the state out of the recession.
States hit hardest by the recession received only a few of the government's first stimulus contracts, even though the glut of new federal spending was meant to target places where the economic pain has been particularly severe.

Nationwide, federal agencies have awarded nearly $4 billion in contracts to help jump-start the economy since President Obama signed the massive stimulus package in February. But, with few exceptions, that money has not reached states where the unemployment rate is highest, according to a USA TODAY review of contracts disclosed through the Federal Procurement Data System.

In Michigan, for example — where years of economic tumult and a collapsing domestic auto industry have produced the nation's worst unemployment rate — federal agencies have spent about $2 million on stimulus contracts, or 21 cents per person. In Oregon, where unemployment is almost as high, they have spent $2.12 per capita, far less than the nationwide average of nearly $13.

That money "is needed nowhere more than it is needed in Michigan," says Leslee Fritz, a spokeswoman for the Michigan Economic Recovery Office, which is coordinating stimulus efforts in that state. She said officials are generally satisfied with the pace of federal aid, but added, "We certainly feel very intensely the need to move quickly."

The $787 billion recovery package was intended to help turn around the economy using federal money to create jobs, especially in places where the recession has taken the most severe toll. Most of that money goes directly to states to pay for work such as highway repairs, but federal agencies also will spend billions of dollars to do everything from fixing runways and improving national forests to cleaning up nuclear waste.

The report has an interactive map that is quite good. According to that map, Oregon's jobless rate is 12%, and the per capita stimulus funding so far is $2.12. In neighboring Washington, with a much lesser unemployment rate of 9.1%, per capita stimulus funding thus far is a whopping $216.02!

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