Posted by
Gray Ghost on Tuesday, December 02, 2008 8:25:35 AM
The National Society of Professional Engineers (NSPE) reported the following today:
The
New York Times (12/2, A20, Pear) reports, "House Democrats said Monday that they would try to pass an economic recovery bill costing $400 billion to $500 billion next month as governors pressed Congress for money to build roads and bridges, provide health care to low-income people and develop alternative sources of energy." House Speaker Nancy Pelosi (D-Calif.) hopes to have a bill ready for President-elect Barack Obama when he takes office next month. Pennsylvania Gov. Edward G. Rendell, chairman of the National Governors Association (NGA), "said the states had $136 billion of transportation and public works projects 'ready to go.' States, he said, want to use the money for roads and bridges, airports, transit systems, ports, railways, schools, waste water treatment plants and broadband networks," which could lead to many new jobs. But, a main factor that will determine whether or not the bill will pass is how Democrats "negotiate with Republicans." Some Republican lawmakers want the government to offset new spending.
The
Washington Post (12/2, D1, Connolly) adds on the front page of its Business section that "if Congress passes an economic stimulus bill of $500 billion to $700 billion, as Sen. Charles E. Schumer (D-N.Y.) expects, then $150 billion for infrastructure is 'not outlandish,' Schumer said. 'If we want to avoid a steep downward spiral, we need a strong injection quickly,' he said. Spending on infrastructure 'has a multiplier effect; it causes other people to be employed.'" Governors are expected to ask for about "$136 billion for infrastructure projects and $40 billion to bolster Medicaid health programs."
The
Christian Science Monitor (12/1, Cook) noted that "of the projects states have ready to roll out, 'well over 70 percent are transportation' related, Rendell said. They are 'not curbside repairing,' Rendell said, but 'major, major' projects likes bridges and roads." Vermont Governor Jim Douglas, vice chairman of the NGA, said that "states are not asking the federal government to make up all of their revenue losses." He said, "'States are not just coming to Washington with hands out,' but are also cutting their spending."
Bloomberg News (12/2, Selway) points out that "30 states are dealing with budget shortfalls totaling $30 billion for the current budget year, which ends in June for most states, on top of the cuts they made when they put their budgets together just months ago," according to the NGA and the National Conference of State Legislatures. Meanwhile, "25 states are forecasting shortfalls totaling $60 billion for the 2010 year." Taking into account "the budget cuts made before the year began, the states are contending with budget shortfalls totaling $140 billion for the 2009 and 2010 budget years," and "that number may grow as the year progresses."
I have only one question: Where is the money coming from? I remember the 1960's. Federal grants of all kinds were available for the construction of water systems, wastewater systems, storm water systems, roads, and other types of infrastructure. However, during the 1960's the US economy was booming. Since August of this year, the US economy is not too strong. Funds have been allocated for the Fannie Mae and Freddie Mac "bailout". Unless Congress intends on drastically increasing the debt, where will we get the money? (Perhaps I already know the answer: TAXES.)