Tucson’s new light rail system will receive $63 million from federal recovery plan
TUCSON – U.S. Rep. Gabrielle Giffords today hailed the announcement by Transportation Secretary Ray LaHood that Tucson will receive $63 million in federal stimulus funding for its modern street car project.
“This investment in our community represents a wise use of federal dollars,” said Giffords. “The streetcar will be a key aspect of downtown revitalization and provides a crucial link between the University of Arizona and the historic heart of our community.”
Formal announcement of the grant will be made Thursday in Tucson at press conference with LaHood, Giffords, Rep. Raul Grijalva and Tucson Mayor Bob Walkup. The 10 a.m. event will take place at the Historic Depot, 400 E. Toole Ave.
The streetcar will run on a 3.9-mile route from University Medical Center through downtown, under Interstate 10, over the Santa Cruz River and west to an area where homes and shops are being built.
Funding will come from the American Recovery and Reinvestment Act, the successful federal stimulus program aimed at providing critical funds to create jobs and get our economy back on track.
The streetcar project was approved by Pima County voters in 2006 as part of the Regional Transportation Plan. In July 2009, Giffords secured $3 million in federal funds for streetcar planning and initial construction.
“Today,” Giffords said, “the dream of a streetcar is on its way to becoming a reality thanks in large part to the stimulus package.”
The American Recovery and Reinvestment Act was signed into law on Feb. 17, 2009 as the nation faced the greatest economic crisis since the Great Depression. Giffords voted for the legislation in the House of Representatives.
“Federal recovery dollars represent a solid investment in communities in Arizona and across the country,” said Giffords. “The positive impact is clear. We are using these dollars – one of the largest and fastest infusions of funding into our economy – to create jobs, help small businesses and rebuild our aging infrastructure.”
In addition to joining LaHood at tomorrow’s announcement, Giffords marked the anniversary of the Recovery Act on Tuesday by welcoming Labor Secretary Hilda Solis to the Pima County One-Stop Center. There she highlighted job-training grants for veterans, especially in the emerging sector of green jobs.
“Back-to-back visits to Southern Arizona by two Cabinet secretaries are a great way to highlight how stimulus funds are being put to work,” Giffords said. “But we must not forget that the Recovery Act also extended unemployment benefits for nearly 20 million Americans and cut taxes for more than 95 percent of working families.”
In Arizona, Giffords noted, more than 320,000 dislocated workers have received extended unemployment benefits and more than 2 million working families got a tax cut. Stimulus funding provided $1.1 billion in tax cuts to Arizonans through the Making Work Pay tax credit.
“The stimulus package extended a much-needed helping hand to Main Street – something that was badly needed for the average American after the rescue of Wall Street,” Giffords said.
The American Recovery and Reinvestment Act was supported by numerous community organizations, ranging from the AARP to the YWCA. On Tuesday, the act was praised by the chief economist for Associated General Contractors.
“The stimulus is the one of the very few bright spots our industry experienced last year and is one of the few hopes keeping it going in 2010,” Ken Simonson told the Phoenix Business Journal.
One year ago, the nation was losing 750,000 jobs per month and unemployment was rapidly climbing. The economy was contracting at an annual rate of 6 percent – the worst in decades. Home foreclosures were at record levels as home prices had plunged by 30 percent or more. The declines in home prices, stock values and retirement plans had cost American households more than $10 trillion.
That was the atmosphere when the $787 billion stimulus program was passed in February 2009.
Since then, the program has provided about $6.7 billion to Arizona, with more than $500 million of that already sent directly to Southern Arizona. Other funds sent to the state also have benefitted Southern Arizona.
Arizona Gov. Jan Brewer has enthusiastically welcomed stimulus funds – especially for Arizona schools – since they first were made available last year.
“From the early days of the package’s approval in February (2009), I committed to pursue Arizona’s portion of federal funds to help avoid massive cuts to our higher education system,” Brewer said last August.
The Republican governor again praised the stimulus package in October, saying she was “pleased to see Recovery Act funds have contributed to areas such as Medicaid, education and transportation.”
The city of Tucson received more than $56 million directly with an additional $244.6 million sent to other agencies and companies within the Tucson city limits. Among the recipients of those dollars were health care for veterans, job training programs and the University of Arizona.
Stimulus dollars also benefitted other cities in Southern Arizona:
• Sierra Vista received $6.9 million directly and $9.8 million more for projects or entities within the city limits
• Marana received $3.7 million directly and $5.8 million more for projects or entities within the city limits
• Oro Valley received $3.2 million directly and $3.8 million more for projects or entities within the city limits
• Sahuarita received $3 million directly and $3.8 million more for projects or entities within the city limits
Arizona agencies that have received stimulus dollars report the money has allowed them to save or create more than 6,850 jobs in the fourth quarter of 2009 alone. Among the many Southern Arizona projects that received direct stimulus funding were:
• About $28 million for 34 military construction projects at Fort Huachuca, Davis-Monthan Air Force Base and the 162nd Air National Guard. The largest amount – $13.8 million – went for 25 projects at Fort Huachuca in Sierra Vista.
• Arizona law enforcement agencies received $5.5 million to help fight crime and drug trafficking on the border.
• Almost $7 million was distributed to Tucson agencies to prevent homelessness and build facilities to benefit neighborhoods.
• Some $4.7 million will be used to develop the Arizona Bioscience Park in Tucson.
• About $1.46 million was allocated for biomedical research at the University of Arizona.
• Some $2 million was appropriated to repair and restore buildings in Southern Arizona’s Coronado National Forest.
• Solar Technology Research Corp. of Tucson received $100,000 to conduct potentially groundbreaking work into the development of low-cost silicon.
• At the Amado Community Food Bank, $300,000 was used to help pay for a needed expansion to meet the growing needs of the community.
• At the United Community Health Center in Green Valley, $1 million was used to purchase a new mobile dental unit, as well as staff and operate it.
About $100 billion was included in the stimulus bill for education to cushion the recession’s impact on schools and to help fuel an economic recovery. Arizona received about $1 billion of that money.
“The Arizona Legislature has struggled to balance the state budget, but that work would have been far more difficult and the cuts far more devastating without the infusion of federal stimulus dollars,” Giffords said.
Giffords added that it is important for states to move quickly to draw down the stimulus funds and get the money flowing to communities in need.
While supporting the stimulus program, Giffords, a member of the fiscally conservative Blue Dog Coalition, has consistently called for transparency and fiscal responsibility in the way money is spent.
“Waste or fraud is unacceptable and any such occurrences must be vigorously pursued,” she said. “It is important that we have a comprehensive tracking system available so every American can see how every dime is spent.”
In January 2009, Giffords and several colleagues sent a letter to House Speaker Nancy Pelosi calling on her to include in the stimulus legislation requirements to track and measure the impact of federal dollars, ensure spending efficacy and thorough reporting. Giffords said it is important not to repeat the perceived lack of transparency and accountability experienced with the disbursement of the Troubled Asset Relief Program funding.