Stimulus Not Working In Indiana PDF Print
Monday, 27 July 2009 13:36

Indianapolis Star's Bill Ruthhart reports that

Indiana has spent 25 percent of the $4.5 billion it is expected to receive in federal stimulus funding, but it's too early to measure what impact the cash infusion has had on the state's economy.

A large portion of the money is going to the state for a variety of programs, but Indiana's share also includes money that flows straight to local governments and schools. The feds also have issued contracts directly to companies for projects in Indiana, ranging from the renovation of the Birch Bayh Federal Building and U.S. Courthouse Downtown to boating equipment for Lake Monroe near Bloomington.

So far, of the $1.1 billion federal officials estimate the state has spent in stimulus money, $945 million was funneled to sustain Indiana's Medicaid program and to supplement the state education budget.

Meanwhile, other state agencies and cities such as Indianapolis continue to wait for the OK to move forward with their stimulus spending.

Architects of the $787 billion American Recovery and Reinvestment Act say that was by design. The money was not intended to be spent immediately but spread over a two-year period.

Ruthhart also records a response from Congressman Pence's office:

Nationally, stimulus spending reflects what's happening in Indiana. So far, about 28 percent of the money has been spent, with federal officials expected to sign off on numerous programs and competitive grants over the next several months.

Matt Lloyd, communications director for U.S. Rep. Mike Pence, R-Columbus, said the package has been a failure, and a better solution would have been more controlled spending and additional tax relief.

"The president's economic stimulus package is not working in Indiana or across the nation," Lloyd said. "There are 21,000 more Hoosiers looking for jobs today than there were when the stimulus was passed six months ago."