Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

State delegates offer wish list in any bailout plan

By David Montero, Rocky Mountain News (Contact)

Published November 13, 2008 at 12:05 a.m.

Text size  
Randy Gonser of Akeena Solar installs solar panels Wednesday at a home in Lakewood. State leaders are urging infrastructure projects if a new stimulus package is approved.

Photo by Darin Mcgregor / The Rocky

Randy Gonser of Akeena Solar installs solar panels Wednesday at a home in Lakewood. State leaders are urging infrastructure projects if a new stimulus package is approved.

More Colorado Government

More stories »

Map my news

Infrastructure projects, more money for Medicaid and unemployment insurance, and updating the power grid are at the top of what several members of Colorado's congressional delegation want in a federal stimulus package for states.

Colorado's state government already is grappling with a possible $101 million budget shortfall and lawmakers are looking to Washington for help.

Sen. Moe Keller, a Wheat Ridge Democrat and Joint Budget Committee chairwoman, said she's contacted some members of the congressional delegation to talk about a potential second stimulus package.

At this point, state government can hope for such help but can't be confident enough to plan for the money while drafting next fiscal year's budget, Keller said.

"That is problematic for us, so I am hoping that some kind of economic stimulus package will come to us," Keller added.

But there are a series of potential pitfalls - the biggest being that there is a good chance no stimulus package will come out of a lame duck session of Congress. And how the money would be doled out to states is murky.

States like California have been hit hard by the economic crisis. With its huge population, a large network of roads needing work and Gov. Arnold Schwarzenegger projecting an $11 billion shortfall, there is some concern California will fight hard to get a significant chunk of money.

Deomocratic Sen. Ken Salazar said that could be a point of contention.

"We would fight to make sure however it is apportioned that we get our fair share in Colorado," Salazar said. "There may be more projects in California, but we would make sure that whatever formula is devised, it would be fairly divided among the states."

Salazar said the number "floating around" was $50 billion nationally for infrastructure projects.

U.S. Rep. Ed Perlmutter said projects such as improving the interchange at I-225 and Colfax Avenue are key to helping the economy in Colorado. Along with the roads, Perlmutter said he'd like to see the stimulus package tackle refurbishing rural schools and upgrading the power grid.

He said the upside to putting infrastructure projects in the stimulus package right away is that they could be started within 90 days. And because they would be multiyear projects, Perlmutter said the stimulus would have lasting effects.

"Construction as an industry tends to spawn jobs," he said. "There is a multiplier effect."

Ron Rizzuto, co-director of the Reiman School of Finance at DU's Daniels College of Business, said the multiplier effect is more valuable this time around than the government's other option - rebate checks.

"When you give people a rebate directly in this kind of environment, they tend to pay down existing bills or save their money," he said. "That money then never enters the system and doesn't stimulate the economy."

However, Rizzuto said studies have shown that in creating jobs, for every $1 earned by a worker, 70 cents is spent.

Newly elected U.S. Rep. Mike Coffman said President George W. Bush made a mistake in the economic slide after the 2001 terrorist attacks by giving money to states without projects attached.

"It was fundamentally the wrong approach," he said.

But U.S. Rep. Diana DeGette said there are some short-term cash infusions that must be addressed immediately.

Her primary focus is to send Medicaid and unemployment insurance money to Colorado to help with the inflating unemployment numbers.

Staff writer Ed Sealover contributed to this report.

What they're saying

Colorado representatives weigh in on a federal stimulus package to help the state's budget crisis.

* Republican Mike Coffman: "I think roads and bridges and other kinds of infrastructure in the country have been neglected, and I think putting money into those projects will result in direct employment and provide something of lasting value."

* Democrat Ed Perlmutter: "The energy sector is another place where some stimulus money could be used to create renewable energy in terms of windmill or solar. Jobs now and investment in the future."

* Democrat Diana DeGette: "If you did infrastructure in a stimulus package, you'd find projects that have already been vetted and are ready to go with funding. And in that area, we have all kinds of needs in Colorado."

* Republican Doug Lamborn: "State lawmakers are facing tough decisions which will have far-reaching impacts on our state infrastructure for years to come. However, I am skeptical about the wisdom of giving aid to states and their taxpayers at the expense of placing an equal burden upon federal taxpayers."

Comments

  • November 15, 2008

    6:25 a.m.

    Suggest removal

    Shadow writes:

    SO their idea of solutions is more spending? How in the world did these people get relected? They want to stimulate the economy then how about some responsibility and common sense. Cut state spending! Instead of makeing it more attractive to get on the dole , create jobs. How about hand ups not hand outs. There is plenty of work that needs to be done but these people want to reward mediocraty.

    If they want to spend, then how about putting some real rewards out there for companies that accomplish not those who just receive contracts.

    We might as well turn the state government over to the feds. Both seem to be in the tax and waste mode.

  • November 17, 2008

    9:05 p.m.

    Suggest removal

    coarizona writes:

    Dream on folks. Time to do what the rest of us are doing. Cut budgets and live on what you have.