Mass. spends $4b of federal stimulus money
By Steven Rosenberg, Globe Staff
Massachusetts has spent more than $4 billion of the $17.7 billion in stimulus funds it received from the US government to help offset budget shortfalls, provide tax reductions, and fund construction projects, saving or creating 27,400 jobs in the state according to a report by the Massachusetts Budget and Policy Center.
The report comes after a Minnesota congressman criticized the pace of stimulus spending in Massachusetts.
Job losses in the Bay State and across the nation would have been significantly deeper without the federal stimulus law, said Noah Berger, executive director of the Budget and Policy Center, a nonprofit research group.
The group’s report, to be released this week, is one of the first attempts by an independent organization to document the effects of the stimulus on Massachusetts. It said the stimulus helped preserve the jobs of municipal police officers, teachers, and firefighters, while generating jobs at new building and infrastructure projects across the state. By extending unemployment benefits and providing tax credits, it also fueled new consumer spending
The report breaks down how the state’s $17.7 billion will be spent, including $5.8 billion in tax relief to residents, $5.5 billion for workforce training, education, and energy efficiency programs, $3.6 billion to help fill the state budget gap, $1.9 bil lion for unemployment compensation and other direct benefits to residents, and $942 million in infrastructure repairs and improvements.
It also updates road construction projects scheduled to receive stimulus funds. States have been allotted $27.5 billion as part of the American Recovery and Reinvestment Act for highway and bridge projects. Massachusetts will receive $437.9 million for its share, and as of Sept. 30, had committed $270 million to projects.
US Representative James L. Oberstar, chairman of the House Committee on Transportation and Infrastructure, criticized the pace of Patrick’s road stimulus spending earlier this month, informing the governor by letter that the state ranked 49th in the nation in committing the grant funds.
Patrick replied Oberstar, and insisted that the state was on pace to spend all of the $437.9 million and would commit to final projects by the end of next February.
Jeffrey Simon, director of infrastructure investment for the state, said Massachusetts is choosing projects that would create short- and long-term job growth.
“Massachusetts has set itself apart not only by quickly moving repaving jobs but by supporting projects that promote regional equity, long term economic development and job growth, and support healthier communities,’’ he said. “We want to make sure stimulus pays off not just this year but decades to come.’’
Other state elected officials reacted to the report with mixed feelings.
Republican State Senator Scott Brown, who is running for the US Senate seat held by the late Edward M. Kennedy, believes the federal stimulus has succeeded in growing government programs but has done very little to grow the economy and create jobs, said Eric Fehrnstrom, a Brown spokesman. “With Massachusetts closing in on double digit unemployment, it’s shameful that stimulus dollars are not being spent in a more targeted job-creating fashion so that we can put people to work and get our economy moving again,’’ said Fehrnstrom.
Senate minority leader Richard Tisei downplayed the report and said most of the $17.7 billion in stimulus funds should have been spent by now.
“Out on the street there’s a sense that the stimulus money isn’t being spent wisely,’’ said Tisei.
“I think we missed a big opportunity to get the money out the door. The money probably saved some state and local public sector jobs but it hasn’t really stimulated the economy. I think most people’s expectations were that jobs would be created in the private sector.’’
Dot Joyce, a spokeswoman for Boston Mayor Thomas M. Menino, said the city has received more $250 million in stimulus grants. “I believe it’s putting people to work creating affordable housing for our residents, and enabling the city to make significant progress,’’ said Joyce.
According to a city website that tracks stimulus fund spending in Boston, the money saved the jobs of 100 police officers, and 215 employees of the Boston schools. At the same time, 970 jobs were created by using funds to jumpstart a stalled housing development and to repave Boston roads, pedestrian ramps, and dedicate 4 miles of bike lanes.
Mayor William Scanlon of Beverly said his city had received $1.3 million in stimulus funds to keep teachers in the classrooms, and to help pay for a new fire boat and subsidize a city energy project.
“It certainly has saved some jobs in the school system,’’ Scanlon said. “I’m grateful for what we’ve got and I’m looking for more.’’
Steven Rosenberg can be reached at srosenberg@globe.com.


