Area leaders are wondering...
Locals have projects in need of funding, but wonder if the federal package will provide the money.
STAFF REPORT
Mahoning Valley officials have nearly $1.1 billion worth of projects on their wish lists for federal economic stimulus package funding that would provide about $7.9 billion for the entire state of Ohio.
Of that amount coming to Ohio, $3.1 billion is for Medicaid programs which provides health care for welfare recipients and other low-income people. Medicaid is about one-third of Ohio’s budget cost.
The governor wants to use at least another $3.4 billion of the federal money to balance the state’s two-year budget.
That’s not going to leave much for the Valley — or any other areas of the state.
“Everyone is keenly aware that demand will exceed the funds that will be available,” said Walter Good, vice president for economic development for the Regional Chamber.
Also, it’s still unknown what projects and programs are eligible for funding under the economic stimulus measure.
Mahoning Valley officials are preparing or have prepared wish lists for federal economic stimulus package money.
Key congressional lawmakers agreed Wednesday on a $789 billion package that Democratic leaders say would create 3.5 million jobs.
The House could vote as early as today on the reconciliation bill, with a Senate vote to follow shortly thereafter. President Barack Obama is expected to sign the bill within days.
The bill includes help for victims of the recession in the form of unemployment benefits, food stamps, health coverage and more, as well as billions for states that face the prospect of making deep cuts in their own programs, according to the Associated Press.
The federal money for Ohio’s Medicaid programs will free up funds in the state budget, said U.S. Sen. Sherrod Brown, a Democrat from Avon.
The federal money includes $1.4 billion for Ohio to help repair and build roads, bridges and water and sewer systems.
That will be a major focus of the money going to communities in the state, Brown said.
Youngstown has a long list of road improvements. But most of its big ticket items are for new construction projects.
“Out of a multi-billion-dollar package intended for job creation, I don’t see any” long-term economic development programs that create good-paying permanent jobs, Williams said.
“Jobs, jobs, jobs, jobs is all you hear from Congress,” he said. “It’s short-sighted not to fund any money for programs that create and retain jobs though economic development.”
Williams is to speak today at a national conference in Washington, D.C., on the need of the federal government to fund small and midsized industrial communities.
While pleased with the infrastructure funding, Williams said he doesn’t understand why Congress won’t provide money directly to cities for programs like the Youngstown Initiative. That program provides grants and tax abatements and waives permit fees for companies to relocate and expand in Youngstown.
The program has provided about $3 million in city investments over the past eight years that’s led to about $34 million in private investments during that time, Williams said.
In today’s speech, Williams will urge Congress to change the stimulus legislation to give control of money to cities to use for long-term economic development.
“All we’re doing with the money is plugging a two-year budget hole in the state and perhaps the city’s deficit” of about $3 million this year, he said. “Then after that we’re not going to be better off.”
The best the Valley can do is establish a list of projects and be prepared to push those projects ahead, Good said.
The chamber’s list was developed by Grow Mahoning Valley, a chamber committee that works to obtain state and federal funds for local projects. It includes public officials and business people from Mahoning, Trumbull and Columbiana counties.
Tops on the list is $40 million worth of road, railway and water line improvements needed for the new manufacturing plant that may be built by V&M Star Steel in Youngstown and Girard.
Good said local officials had planned to redirect property taxes from the factory to pay for the site work, but the stimulus package provides a new opportunity for funding.
Boardman has $40 million in requests ready when federal stimulus money becomes available, said township Administrator Jason Loree.
Included are several stormwater management projects for which the township had already done extensive work but shelved in 2007 because of a financial crunch.
Canfield has preliminary plans for projects, said Chuck Tieche, its city manager.
“Now we are working on fine-tuning that list,” he said.
Tieche said any money Canfield may receive because of the stimulus package will benefit the city for several reasons.
“Overall, if the guideline here is to put people to work in a quick fashion, obviously our projects would accommodate that,” he said. “Also, any funds that we get allows us to retain local dollars to cover our operating budget and do some capital projects quicker than we would normally able to.”
Officials in both Poland village and township are developing their lists.
Village Mayor Tim Sicafuse said he’ll broach the subject with council members at next week’s meeting to try to devise a list of projects.
Jim Scharville, Poland township administrator, said township officials are waiting to see what the stimulus package entails and what projects will be eligible.
“It seems kind of ludicrous to work on something if it [the money] isn’t going to be there for it,” Scharville said.
In Trumbull County, Trish Nuskievicz, assistant director of the planning commission, said the county’s sanitary engineering department, which handles construction of new water and sewer lines, has completed engineering and other preliminary work on an unusually large number of projects.
Sanitary sewer projects make up all but three of the county’s top 10 shovel-ready projects.
Howland Township Administrator Darlene St. George said the township also has a list of projects.
“We’re just waiting to see how it’s going to filter down to the local government,” she said. “We have road projects and storm water projects. We have quite a few projects that have been engineered and are on the shelf ready to go.”
Girard is seeking $16 million to replace the dam at Girard Lakes.
“I cannot think of one project that will bring more jobs and benefit to this area than the rebuilding of the dam,” said Mayor James Melfi. “It will benefit the workers on the project and the whole city with the collection of the tax dollars.”
“The frustrating part of it, from my perspective, is that we’ve submitted this very list to our legislators, to the EPA, to the Eastgate (Regional) Council of Governments and to the State of Ohio, and each one has their own individual form and procedure and way of doing it, but we’ve complied and we’ve got it in everybody’s hands,” said Joseph Warino, Mahoning County sanitary engineer. “So we’re hopeful that all of them (the proposed projects), or some of them, get funded.”
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