Published in Chanhassen Villager Feb. 12

Could city projects tap federal stimulus money?
By Forrest Adams

As the nearly $1 trillion “federal stimulus package” moves closer to passage, a mayor’s wish list including more than $40 million worth of “shovel-ready” projects in Chanhassen awaits funding.

Chanhassen is one of 27 cities in Minnesota to include projects on a list that was compiled in December by the United States Conference of Mayors for the Obama Administration to consider as it allocates federal “stimulus” funding.

The list includes nearly 300 Minnesota projects worth about $805 million.

City mayors were requested in late November by the U.S. Conference of Mayors to submit lists of infrastructure projects that would be “ready to go” within 90 days and could be completed by the end of 2010. Mayor Tom Furlong received the request and forwarded it to City Manager Todd Gerhardt, who forwarded it to City Engineer and Director of Public Works Paul Oehme.

Oehme’s move was to pull 18 projects from the city’s five-year capital improvement plan (CIP) and list them. The CIP is a five-year projection of what the city will need to spend to maintain its capital assets (roads, machinery, public works facilities, etc.) and add improvements or system expansions when necessary. The preliminary CIP estimate for the next five years exceeds $73,700,000. Much of this would be financed through bonding.

A third fire station, which city officials estimate will cost about $2 million, plus $1 million of related equipment costs, is one of the projects on the list. The fire station and equipment purchases are on the city’s CIP for 2010. An infusion of federal funding would allow the city to speed up implementation and avoid selling bonds.
City officials estimate the projects included on the list for the mayor’s conference will eventually cost city taxpayers about $40,695,000.

Along with their best-guess cost estimate, city officials guessed the infrastructure projects would create 885 jobs.

The letter

The letter that was sent to Furlong and other mayors was titled, The United States Conference of Mayors Mainstreet Stimulus.
In the body of the letter, mayors were urged to “build the case for our Main Street Stimulus that ensures resources are provided directly to local governments to create good jobs and promote green infrastructure investment.”

In spite of the city’s effort, Gerhardt said he doesn’t expect to see any infrastructure funding.

“We gave them the best information we had available,” he said. “Do we believe these projects will be funded? No. Everybody threw out whatever projects they had. We’re not holding our breath.”

Gerhardt said the city’s interactions with the Minnesota Department of Transportation hold more promise. These conversations deal with receiving funding for the second phase of Lyman Boulevard construction, the construction of a downtown transit station and improvements at the Powers Blvd. and Highway 5 and Highway 5 and Highway 41 intersections.

The U.S. Conference of Mayors submitted a total of 11,391 projects worth more than $73 billion for consideration of federal funding. No other cities in the Southwest suburbs submitted funding requests on this list. For a complete list of the items included in the city’s list of “ready to go” projects, go to www.stimuluswatch.org/project/by_city/Chanhassen/MN. For a complete list of projects in Minnesota, go to www.stimuluswatch.org/project/by_state/MN.

Important projects not ready

The re-alignment of Highway 101 south of Lyman Blvd. to the Scott County border and the expansion of Highway 5 toward Victoria are also important infrastructure projects that need funding, but they aren’t far enough in the planning to be considered “ready to go.” Regarding Highway 101, Oehme is trying to schedule a regional meeting for sometime in March between Scott County, Shakopee, Carver County and Chanhassen.

Readers can contact Forrest Adams at fadams@swpub.com.

From Governor Pawlenty's office
Sent: Wed 2/25/2009 9:13 AM

GOVERNOR PAWLENTY ANNOUNCES TRANSPORTATION STIMULUS PROJECTS FOR GREATER MINNESOTA
~ 60 projects around the state will move forward with stimulus funding ~

With transportation funding from the federal stimulus package now available, Governor Tim Pawlenty today announced 60 state highway projects that are slated to begin construction in Greater Minnesota as early as this spring. Stimulus funds targeted for the Greater Minnesota highway construction, paving, bridge and safety projects totals $180 million.

“These projects will mean jobs in Greater Minnesota and lasting improvements in our state’s transportation infrastructure,” Governor Pawlenty said. “These road and highway projects are exactly the kind of bread and butter projects that we should have seen more of in the federal stimulus package. Unfortunately, only $27.5 billion of the $787 billion bill funds highway improvements”

The Federal Highway Administration estimates that the Greater Minnesota transportation projects will create approximately 5,000 jobs. Projects in the Twin Cities metro area are being finalized and will be announced in March.

Greater Minnesota projects in the package range from concrete rehabilitation on Interstate 94 near Monticello, to repaving Highway 75 north of Ortonville, to heavy asphalt and concrete replacement work on stretches of Interstate 90 in southern Minnesota.

Contractors for the first round of projects will be selected March 13, with work to begin in May.

"We will make sure that Minnesota’s share of the federal stimulus funds is used efficiently and effectively on shovel-ready transportation projects around the state,” said Minnesota Transportation Commissioner Tom Sorel said. “We are optimistic that Minnesota will meet the required federal deadlines and we appreciate the support of our local partners and stakeholders.”

Minnesota is expected to receive more than $596 million for state and local highway and transit projects over the next two years as a result of the federal legislation. Approximately 30 percent of the highway funds are available for local units of government and the remaining 70 percent is for projects identified by Mn/DOT to meet the goal of the federal legislation to create jobs and improve the nation’s infrastructure. The bulk of the money will go for roads and bridges, with half of the funds targeted for projects that must start within 120 days.

Minnesota to receive over $186 million in weatherization funds,
funding could help 35,000 Minnesota families

Minnesota will receive over $186 million in federal funding to help Minnesota families weatherize their homes as part of the recently passed American Recovery and Reinvestment Act.

The funding will help thousands of Minnesota families save an estimated 32 percent on their energy bills.

“Rising energy costs are making it hard for Minnesotans to heat their homes in the winter,” said Klobuchar. “These funds will help families save money, create jobs and businesses, and reduce energy consumption to make sure Minnesota families aren’t left out in the cold. It is imperative that we give our families the help they need to keep pace with the sharp increase in heating costs.”

The Weatherization Assistance Program allows low-income families to reduce their energy bills by making their homes more energy efficient, reducing heating bills by an average of 32 percent and overall energy bills by hundreds of dollars per year according to the Department of Energy.

Minnesota will receive over $131 million for the Weatherization Assistance Program, which will allow an average investment of up to $6,500 per home in energy efficiency upgrades and will be available for families making up to 200% of the federal poverty level – or about $44,000 a year for a family of four.

Last year, Minnesota received $10 million for weatherization efforts, enough for up to 4,000 Minnesota homes. The new funding is expected to help weatherize the homes of over 35,000 families.

The Minnesota State Energy Program will receive over $54 million in funding for rebates to consumers for home energy audits or other energy saving improvements, such as; development of renewable energy projects for clean electricity generation and alternative fuels; promotion of Energy Star products; efficiency upgrades for state and local government buildings; and other innovative state efforts to help save families money on their energy bills.

The funding, a part of the American Recovery and Reinvestment Act, was disbursed today by the Obama Administration and Department of Energy (DOE) to the Minnesota Department of Commerce.

As a result of the federal stiumuls plan, Minnesota is scheduled to receive more than $29 million for law enforcement funding and more than $94 million for transit funding from the stimulus plan.

First $2,400 of Unemployment Benefits Tax Free for 2009

WASHINGTON — All or part of unemployment benefits received in 2009 will be tax free for many unemployed workers, according to the Internal Revenue Service.

“This morning we learned that a record 5.6 million people were receiving unemployment benefits in the middle of March. This underscores the need for the relief provided by the American Recovery and Reinvestment Act, which includes making the first $2,400 of unemployment insurance exempt from tax,” said IRS Commissioner Doug Shulman. “I urge all unemployed workers to take this special tax break into account as they plan their tax withholding and quarterly estimated tax payments for the year. This change offers a helping hand to millions of Americans who are out of work and struggling to make ends meet.”

Under the American Recovery and Reinvestment Act, enacted last month, every person who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their tax return next year. For a married couple, the exclusion applies to each spouse, separately. Thus, if both spouses receive unemployment benefits during 2009, each may exclude from income the first $2,400 of benefits they receive.

The new law doesn’t affect the return taxpayers are filling out now. Unemployment benefits received in 2008 and prior years remain fully taxable.

‘Stimulus’ funding blows cap off weatherization program
CAP Agency expecting $1.5 million in federal funds
By Forrest Adams

Two little boys, one of them almost 4 and the other almost 2, scampered and toddled back and forth across the drafty kitchen floor on Monday morning as two CAP Agency officials and a private contractor scrutinized a device attached to the front door of the boys’ home.

The men were trying to determine the home’s energy inefficiency by measuring its pressure diagnostics, and the boys’ mother sat at the kitchen table working with their older sister. The home in western Chanhassen belongs to a family of seven- five of them kids under the age of 15- and CAP Agency is in the midst of providing up to $6,500 worth of “weatherization” services there to help the homeowners make it more energy efficient.

“We’re looking for a green healthy household that is energy efficient when we are through,” said Pete Haerden, CAP’s housing services weatherization coordinator.

CAP’s weatherization program is on the verge of growing by about six fold. The agency expects to receive about $1.5 million in “stimulus” funding during the next 18 months as a result of federal legislation, and the money will go toward helping more than 300 eligible home owners in Scott and Carver County make energy-efficient improvements to their home, according to Judson Kenyon, the CAP Agency housing director. Kenyon said usually the agency provides weatherization services to between 50 and 55 households.
In addition to providing more funding, the federal government has raised the income ceiling for eligibility to partake in the program from 150 percent about the federal poverty line to 200 percent– or about $44,000 a year for a family of four. See the attached chart for income levels for specifics.

Given these changes, Kenyon said CAP Agency plans to increase the number of contractors they work with and hold training sessions to help new CAP Agency contractors learn how to perform weatherization services.

CAP Agency uses its energy assistance program for low-income individuals as the basis for the weatherization program. That program assists home owners with a direct financial payment to their heating vendor for assistance with their heating cost during the heating season. As a first step toward enrolling, individuals should call the agency’s Shakopee office at (952)496-2125.

A case study
On Monday while Kenyon, Haerden and a private contractor were testing the home in Chanhassen, the home owner, a stay-at-home mother, who asked to remain anonymous, explained how she came to be the beneficiary of work created by the federal “stimulus” program.
She stumbled into CAP’s energy assistance program last fall while looking for tips on how to conserve energy and lower the home heating bill.

“I was anticipating our bills [this winter] would be higher, and I was just trying to get ahead of the game,” she said. “I didn’t know at that point about weatherization. I was just looking for ideas about weather stripping the doors and how to make the house more energy efficient.”

A bunch of phone calls and stacks of paperwork later, Haerden showed up with a contractor.

The work done there so far includes replacing big-ticket mechanical items like the furnace and hot water heater, both with more energy-efficient models. Kenyon said in the past CAP Agency wasn’t able to get involved in replacing mechanical items as much as it will be able to now that it has more funding from the federal government. The homeowner said she’s very happy, and Haerden said replacing the older, less efficient models with new ones will provide noticeable savings.

“It’s going to mean a cash savings,” he said mater-of-factly.
Increased funding

The state of Minnesota will receive over $186 million in federal funding to help Minnesotans weatherize their homes as part of the recently passed American Recovery and Reinvestment Act, according to a March 12 press release from U.S. Senator Amy Klobuchar (D-MN). The new funding is expected to help weatherize the homes of over 35,000 families.

Readers can contact Forrest Adams at fadams@swpub.com.

Klobuchar announces $130 Million in unemployment insurance modernization incentive funds for Minnesota

Says funds will give Minnesotans a safety net during difficult times and help put them back to work

Washington, D.C. – U.S. Senator Amy Klobuchar today announced that Minnesota will receive over $130 million in unemployment insurance. The funding, available from the American Recovery and Reinvestment Act via the Department of Labor, will help Minnesotans get through these tough economic times. The funds allow workers to use their more recent earnings to qualify for benefits.

“As I’ve traveled across the state, I’ve met many Minnesotans who have worked hard and played by the rules, but have been hurt by this economic downturn,” said Klobuchar. “These funds will ensure that these Minnesotans have a safety net during difficult times that helps them get back to work."

According to the Department of Labor, the Minnesota Department of Employment and Economic Development can use the funds to pay unemployment benefits or, if appropriated by the legislature, for administering its unemployment insurance program or delivering employment services.

The American Recovery and Reinvestment makes available a total of $7 billion for unemployment insurance modernization incentive payments to states that have specific types of provisions in their unemployment insurance programs.

Stimulus fraud... "This week, thousands of people are getting stimulus checks in the mail. The problem is that a lot of them are dead." Check on the story out of New York by going to http://www.myfoxny.com/dpp/your_money/consumer/090514_Dead_People_Get_St.... Then return to leave your comments.

"Shortly after the economic stimulus bill was signed, Vice President Biden was talking up the administration's Web site to track the spending, Recovery.gov, when he accidentally directed people to Recovery.org."

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/20/AR200905...

The Wall Street Journal is calling Washington, D.C., a boom town.

"Most corners of the economy may be struggling, but in the nation's capital it's boom times, baby," according to a report.

The area's unemployment rate dropped to 5.6% in April from 5.9% in March, leagues from the national unemployment rate, which hit 9.4% in May.

For more information, go to http://online.wsj.com/article/SB124458850503399823.html#mod=djemEditoria...

The New York Times reports: "The theory is that if more goods and services are being bought, whether cement for a new highway or groceries paid for with a tax rebate, there is less chance that falling demand will lead companies to lay off workers, resulting in greater falls in demand and a deeper downturn."

However, "By the summer of 2009, a debate had developed over whether the stimulus bill was having the desired effect or not, with some economists and Democrats arguing that a further economic boost was needed, and many Republicans saying that the rise in unemployment was proof that Mr. Obama's approach had failed... Administration officials had predicted that the stimulus program would save or create 600,000 jobs by summer. But by July, the economy had lost more than two million jobs since Mr. Obama took office, while officials were estimating that the program has saved only about 150,000 jobs."

CNN and Time report White House senior adviser Valerie Jarrett "said the White House was already looking at tax credits and other measures to further stimulate the economy" (http://www.time.com/time/politics/article/0,8599,1930932,00.html).

Is the White House planning another so-called stimulus?