February 19, 2009
February 19, 2009
State Economic Recovery Office announced
LANSING - Governor Jennifer M. Granholm today said that the state is moving quickly to use funding provided by the American Recovery and Reinvestment Act signed into law by President Barack Obama on Tuesday to create jobs and invest in the state's economy. Though complete details of the federal plan's impact on Michigan may not be known for several weeks, the governor indicated that in many instances, the dollars will flow to the state under existing formulas that determine how much funding is available and the type of projects that qualify.
"Michigan will use this federal recovery funding to create all kinds of jobs for all kinds of people," Granholm said. "That means creating jobs today to build infrastructure, fix roads and bridges, and repair sewers all across the state. And jobs tomorrow by creating demand for new alternative energy products and projects. We'll be investing in a new energy infrastructure and weatherizing homes and businesses from one end of the state to the other."
Speaking before several Metropolitan Planning Organizations (MPO) that prioritize regional transportation projects, the governor said Michigan is expected to receive $853 million in additional funds for road and bridge construction under the plan within a matter of weeks. As in the past, the federal funds will be prioritized in urban areas by the local MPOs in collaboration with the Michigan Department of Transportation. The amount of funding awarded to the regions will be based on population.
Granholm noted that many other recovery funds that will be sent to the state will also be distributed based on existing formulas, including Medicaid, unemployment insurance, and at-risk and special education funds for K-12 schools.
In addition to the formula programs, the state is expected to have discretion in spending a portion of the recovery funds and will aggressively pursue competitive grants under the program as well. The priorities for those discretionary funds will be job creation, training and educating citizens, and investing in energy efficiency and renewable energy technologies to create jobs, save money, and reduce our reliance on fossil fuels.
Granholm is expected to outline her specific priorities for those discretionary dollars next month.
Federal economic recovery funds will require legislative authorization, and the governor called on lawmakers to move quickly to approve bills that will pave the way for the federal dollars to be spent in Michigan.
"This past year has been brutal, like few others in our history," Granholm said. "And any honest assessment of our state's economy has to recognize that things are likely to get worse before they get better - but they will get better. Every day we wait to spend our recover funds is a day we're not creating jobs and investing in our economy."
The governor said that the administration has been working for some time on the implementation of the recovery program, an effort she formalized this week with the establishment of a Michigan Economic Recovery Office. Leslee Fritz, a member of the governor's executive office communications' team, has been tapped to spearhead that effort.
The office unveiled its recovery Web site at www.michigan.gov/recovery on Wednesday.
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