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A slice of the stimulus

As funds start to flow, Watertown, like communities across nation, begins to spend in ways big and small

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By Erin Ailworth
Globe Staff / April 29, 2009
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WATERTOWN - More than $6 million will be spent fixing the often treacherous Nonantum Road to make it safer. Watertown public schools will get about $390,000 to bolster the special education program. Battery maker A123Systems wants a piece of a $2 billion federal fund to produce batteries for electric vehicles. And Pauline Hennrikus, 81, just got notice that she'll be receiving a stimulus check - an additional $250 payment from Social Security.

"I feel an urgency to go out and spend it," Hennrikus said recently while nursing a cup of coffee from a counter-side stool at the Deluxe Town Diner. Or maybe she'll put it in the bank to help pay her medical bills. She's still trying to decide. "I've got to do my part," she said.

Federal stimulus dollars are starting to wend their way from Washington to Watertown and other communities nationwide. The $787 billion plan approved by Congress earlier this year aims to spur cash-strapped municipalities, companies, and consumers to spend, and in doing so create jobs to help heal a wounded economy. Massachusetts is expected to get $8.7 billion that will create or save 79,000 jobs over the next two years - money that can be used for a variety of projects, from repairing roads to funding research and development. Increased government benefits and federal tax breaks for residents are expected to add up to a few more billion dollars.

Over the past several weeks, some officials and residents in Watertown, which has 34,000 residents, have gotten word that they'll be getting a slice of the stimulus package. So far, nearly $6.7 million has been allotted to several projects and programs. But that doesn't count the money flowing to residents who are eligible for additional Social Security payments or increased unemployment benefits. And then there are the jobs that are being created and the first-time home buyers who are moving in, thanks to an $8,000 tax credit. All of this can help boost Watertown's tax base.

That would be a boon to a community that's not used to getting a lot of money from the US government. Watertown is struggling with a $2.2 million budget deficit and an unemployment rate that has nearly doubled in the past year, to 5.8 percent last month.

"This is going to help Watertown and other communities get through this recession and come out of it stronger on the other end," said US Representative Edward Markey, the Malden Democrat whose district includes Watertown.

Some stimulus initiatives already are at work in Watertown.

A Newton couple, Sarah Zipkin and Dan Zoen, for instance, recently closed on a $283,000 single-family fixer-upper in Watertown and were able to take advantage of the $8,000 tax credit.

"That just sealed the deal for us," said Zipkin, 30.

Home buying has a bonus effect on the economy. A purchase typically spawns a whole cycle of spending - from renovating to furnishing. Since closing on April 1, the couple has spent $5,000 to $6,000 to spruce up their new house, which Zipkin described as "vintage bohemian." Much of that has been spent in Watertown, at places like home improvement shops MJ Pirolli & Sons, Home Depot, and Lowe's.

A few miles away at Career Source, a job center just over the line in Cambridge, director Linda Rohrer said the center expects to get stimulus money and plans to use part of it to fund a summer youth employment program. The program has eight out of its 230 slots set aside for Watertown youth.

"That is something that we definitely would not have been doing without stimulus money," Rohrer said.

Stimulus money also will help the center ramp up its client services as the ranks of the unemployed swell. The newly laid-off need help on everything from how to apply for benefits to job-training opportunities. In Watertown, more than 1,100 people were jobless in March.

Meanwhile, at Watertown Public Schools, Superintendent Steven Hiersche said his district is getting nearly $500,000 in stimulus funds to boost programs for special education and low-income students. He said he's just waiting to learn about any restrictions on the funds, but he's hoping to use some of the money for autism-related programs. "The more you hear about it, the more regulation is attached to it," Hiersche said, adding that he's grateful for funding. "It's certainly better news than not having it."

Officials at Springwell, a nonprofit that provides aid to seniors and those with disabilities, are still waiting to find out how much money they will get for their Meals on Wheels program. Nationwide, elderly nutrition services like Meals on Wheels got $100 million in total.

Not all stimulus efforts appear to be taking hold, however.

Bruce Whittier, a sales manager at Watertown Ford, said that though business is good, he hasn't seen an influx of new-car buyers because of a stimulus package incentive that saves qualified buyers at least a couple hundred dollars.

"I don't know if it's that great of a discount," Whittier explained. "It's still very expensive."

And some are still waiting - and hoping - that their requests for stimulus aid will be fulfilled.

At the Watertown Police Department, officials are hoping to use a $27,540 grant for law enforcement agencies and courts to help retain officers. City officials are awaiting word on a wish list of shovel-ready public works projects totaling more than $16 million, money that could among other things fix up Orchard Street, reduce traffic near two schools, and make improvements to Victory Field park.

"Whether we'll be able to get any of those funded or not remains to be seen," said Steve Magoon, the city's director of community development and planning. "Obviously, if we get funding and get an opportunity to move some of this along and get it constructed - particularly, if it doesn't put additional stress on our limited local resources - it's well worth the effort."

One thing could give Watertown an edge in the competition for more stimulus funds: the presence of both biotechnology and clean-tech companies. The federal plan includes $43 billion for energy initiatives and $111 billion for science and infrastructure, of which $10.4 billion will be earmarked for National Institutes of Health research.

The city is home to lithium-ion battery maker A123Systems, which signed a deal with Chrysler LLC to provide batteries for the vehicle maker's line of electric cars, and got funding from General Electric and others to ramp up its battery manufacturing and smart-grid capabilities.

At A123Systems, director of marketing Andy Chu said his company is planning to apply for stimulus funds, and that any aid his company or the clean-tech industry gets is likely to have a ripple effect on the region.

"It's not just A123 that benefits," Chu said. "It's all the suppliers that we buy from. You've got construction jobs, R&D jobs."

Erin Ailworth can be reached at eailworth@globe.com.