Wisconsin and the Stimulus

Are we using it to create jobs and 21st century transportation?

June 29th marks the 120-day deadlne for states to commit at least 50% of the American Recovery and Reinvestment Act's (ARRA) $26.6 billion in transportation funds. It provides a vantage point to examine how states are using the money, with a particular focus on the $529 million apportioned to Wisconsin.

Report

WISPIRG

Executive Summary

120 day stimulus deadline: time to ask “how is the money being spent?”

June 29th marks the 120-day deadline for states to commit at least 50% of the American Recovery and Reinvestment Act’s (ARRA) $26.6 billion in transportation funds. It provides a vantage point to examine how states are using the money, with a particular focus on the $529 million apportioned to Wisconsin.

While some of Wisconsin’s transportation stimulus investments make progress on the objectives of the economic recovery act, Wisconsin has at the same time spent a significant portion on new capacity projects, undermining recovery fund goals.  Wisconsin’s choices about which projects to support with its largest and most flexible source of transportation funding rank in the bottom third, relative to other states for percentage of projects that are system preservation versus new capacity.

Wisconsin and state officials should be commended for taking advantage of the ARRA high-speed rail program to prepare proposals for high-speed rail funding.  But, unlike other states which have flexed Surface Transportation Program (STP) funds for public transportation, Wisconsin has not.  And Wisconsin has spent more than one-third of its STP funds on new highway capacity,  threatening to undermine the stated ARRA goals of reducing energy dependence, cutting greenhouse gas emissions, and reducing commute times and congestion, among others.

Transportation funding in the ARRA must be evaluated in terms of its multiple goals

The ARRA and federal officials identify nine goals for ARRA transportation funding:

1.    create and save jobs

2.    fix our crumbling infrastructure

3.    modernize the transportation system

4.    promote long-term economic growth

5.    improve public transportation

6.    reduce energy dependence

7.    cut greenhouse gas emissions

8.    not contribute to additional sprawl

9.    The ARRA funding arrives not only during a recession, but also at a time of embarrassingly large backlogs of road and bridge repairs, inadequate and underfunded public transportation systems, and too-few convenient, affordable transportation options.reduce commute times and congestion

“Fix-It-First” Priorities

In Wisconsin, 65 percent of the money committed to roads and bridges will go to repair and restoration projects instead of new highways.  Nationally, the average among all of the states was 62.9 percent.

Wisconsin is smart to prioritize fixing existing roads and bridges before building new ones for a number of reasons:

    • In general, road and bridge repairs produce 16 percent more jobs respectively than construction of new roads and bridges;
    
    • On average, repair and maintenance projects spend money and create jobs faster than projects that add new capacity;

    • Roads and bridges in Wisconsin are in serious need of repair.  Best estimates show that 47 percent of roads are not in “good” condition and over 1,300 bridges are structurally deficient.
    
    • Investing in public transportation, pedestrians and bicycles

In Wisconsin, none of the flexible STP funds will be spent on projects that provide residents choices to get around without driving, by supporting public transportation.  One percent so far in Wisconsin has been spent on non-motorized projects.  While many states performed poorly in this category, seven states have committed 10 percent or more to non-motorized projects, and twelve have spent 5 percent or more on non-motorized projects.  For example, Colorado has spent more than 11 percent on non-motorized projects, and Iowa has spent over 16 percent on non-motorized projects.  Iowa also committed 93% of its road spending on system preservation.

Public transportation and non-motorized projects are smart investments:
    
    • Public transportation projects produce 31 percent more jobs than construction of new roads or bridges;

    • Public transportation ridership continues to reach record highs while Americans are driving less;
    
    • Pedestrian and bicycle projects encourage activities that make people healthier and, along with public transportation, encourage more efficient compact development patterns;

    • Alternatives to car and truck travel reduce dependence on oil, relieve traffic congestion, and avoid emissions of global warming pollution.

Likely job creation

Wisconsin ARRA spending in the first 120 days can be predicted to generate 5,464 jobs.  If all flexible funds had been spent on public transportation projects, an additional 1,463 jobs would likely be generated.

Wisconsin could have made even more progress in each of these areas.  The next spending period will show whether performance improves further or slips backward.