Officials start to unwrap federal stimulus package

HELENA – State officials responsible for roads, education and health care urged lawmakers Tuesday to move quickly but carefully to approve the spending of Montana’s $800 million share of federal stimulus money.

“Recovery dollars don’t wait for projects,” said Transportation Director Jim Lynch. “If we don’t use this money in the time frames in which we are given to spend it, we will lose it.”

Lynch said half of the projects must be obligated within 120 days of receiving the money. If the state fails to obligate the money in that time, it will be redistributed to states that can, he added.

Lynch said the Department of Transportation has a $234 million list of projects that have already been approved by the Highway Commission and may just need minor tweaking. He said these projects would put 6,000 Montanans to work quickly.

“There’s quite a bit of construction activity that’s going to take place with the stimulus money,” Lynch said.

DOT expects the first project to be ready for bidding within the month.

Directors from other state agencies most affected by the federal money gave a Senate budget committee estimates about how the money will be used in their departments but could not give exact details.

Superintendent of Public Instruction Denise Juneau said the first half of the $149 million in federal assistance for Montana schools is expected in the next two months. Juneau said she hopes any state money freed up by federal money will stay in education.

The Office of Public Instruction expects some federal guidance on the rules, regulations and other specifics on education's share of stimulus money by the end of this week, Juneau said.

Mick Robinson of the Montana University System asked that federal money be appropriated to mitigate modernization costs and tuition increases across Montana campuses.

Anna Whiting Sorrell, director of the Department of Public Health and Human Services, said she was still waiting for federal guidance but urged continued funding because her department could be needed more than ever as economic problems hit home.

Whiting Sorrell said more Montanans will be eligible for public health services but may not come forward immediately.

“This will be the first time that they have accessed our services,” Whiting Sorrell said. “It is something they will not be comfortable doing.”

On the brighter side, Department of Revenue Director Dan Bucks said Montanans can look forward to several tax cuts within months.

“These cuts are huge and the dollars are focused on the middle class,” Bucks said.

Bucks said 97 percent of individual income-tax payers will benefit from a $400 tax credit or an $800 tax credit for married couples. He also stressed the importance of home renovations for energy conservation because many projects are eligible for tax credits.

Representatives from the governor’s office asked lawmakers to be as expeditious as possible when appropriating money so projects can get going.

Other testimony at the lengthy hearing came from various counties, which asked for specific projects or concerns to be considered when the Legislature appropriates the federal money.

Lawmakers were also told there would be around $200 million available in federal discretionary funds, but it is still unclear how that might be used to replace state dollars in the budget.

- by CNS correspondent Molly Priddy