40 percent of W.Va. stimulus spent. Or is it 20 percent?
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CHARLESTON, W.Va. -- West Virginia state agencies have spent 40 percent of $1.4 billion in stimulus dollars they have been awarded so far, according to Manchin administration figures.
They have awarded $555 million to a dizzying array of projects ranging from roads and bridges to schools and sewers, by administration accounting.
But new figures posted Friday on the national stimulus Web site, www.recovery.gov, say West Virginia spent only 20 percent of its grants and contracts -- $278 million -- through the end of March.
The difference? The federal numbers do not include extra Medicaid dollars or other entitlements, according to Cheryl Arvidson, spokeswoman for www.recovery.gov.
Even 40 percent startled Delegate Nancy Guthrie, D-Kanawha, chairwoman of the House of Delegates' stimulus subcommittee.
"In either case, it means less than half the money has made its way into West Virginia's economy," she said.
The Legislature has had trouble getting basic information about West Virginia stimulus spending from Gov. Joe Manchin's administration, Guthrie said. "We have not been able to find out which projects have gone forward, in what county, who is doing the work and how far along they are. That has got to change."
State stimulus coordinator Danny Scalise said that information soon would be posted on the state's recovery website, www.recovery.wv.gov. "We're proud of what we've done so far," he said.
"I'm concerned that they're running out of time," Guthrie said. "A lot of this money has to be obligated by 2011. That's the witching hour. After that, it goes back in a pool, and other states can compete for it."
Nationwide, on average, states have invoiced for 31 percent of their grant and contract funds, according to the new www.recovery.gov data.
West Virginia is behind most of its neighbors by that rough reckoning, which does not include extra Medicaid dollars. Kentucky has spent 31 percent, Ohio has spent 19 percent, Pennsylvania and Virginia have each spent 26 percent, and Maryland has spent 23 percent.
"People assume this money went out quickly," Guthrie said. "That was the intention. How can anybody say yet what the full impact of the stimulus will be?"
'An upsurge soon'
Manchin administration officials say the pace soon will pick up considerably. "We have great projects, but we had to spend a lot of the last year getting ready," said Department of Commerce Secretary Kelley Goes.
"We know it looks slow to people who are looking at this from outside," she said, "but, for government agencies, we are moving at the speed of light."
By the state's figures, Commerce is one of three agencies that have spent less than five percent of their award money. The other two are the Public Service Commission (1 percent) and the governor's office (4 percent).
Of $65 million in awards, Commerce has spent only 1 percent, $639,000.
"The amount of groundwork that you have to do before you can spend this money is obscene," Goes said. "It's not a matter of getting the money, then putting the money right back out."
In West Virginia, the Department of Health and Human Services, which administers Medicaid, has spent a higher proportion of its stimulus dollars than any other agency: 94 percent of $366 million.
They didn't have to do up-front work, said Jim Pitrolo, policy director for Manchin. "They just add the dollars to what they already do."
If the DHHR is taken out of the math, the other West Virginia agencies have spent 19 percent of their stimulus dollars as a group, which roughly matches the federal figures.
National construction associations say that, nationwide, infrastructure projects will accelerate this year. That will happen in West Virginia, Pitrolo said. "It's takes a while to bid the projects. A rough winter's over. You'll see an upsurge soon in construction."
The state Department of Transportation has awarded contracts for $221 million in road and bridge projects, but only 39 percent of those dollars has been paid out, according to the DOT.
Click here to view a PDF of agency by agency spending.
Click here to view a PDF of where to go to get more information.
Click here to view a PDF of percentage of states' spending.
CHARLESTON, W.Va. -- West Virginia state agencies have spent 40 percent of $1.4 billion in stimulus dollars they have been awarded so far, according to Manchin administration figures.
They have awarded $555 million to a dizzying array of projects ranging from roads and bridges to schools and sewers, by administration accounting.
But new figures posted Friday on the national stimulus Web site, www.recovery.gov, say West Virginia spent only 20 percent of its grants and contracts -- $278 million -- through the end of March.
The difference? The federal numbers do not include extra Medicaid dollars or other entitlements, according to Cheryl Arvidson, spokeswoman for www.recovery.gov.
Even 40 percent startled Delegate Nancy Guthrie, D-Kanawha, chairwoman of the House of Delegates' stimulus subcommittee.
"In either case, it means less than half the money has made its way into West Virginia's economy," she said.
The Legislature has had trouble getting basic information about West Virginia stimulus spending from Gov. Joe Manchin's administration, Guthrie said. "We have not been able to find out which projects have gone forward, in what county, who is doing the work and how far along they are. That has got to change."
State stimulus coordinator Danny Scalise said that information soon would be posted on the state's recovery website, www.recovery.wv.gov. "We're proud of what we've done so far," he said.
"I'm concerned that they're running out of time," Guthrie said. "A lot of this money has to be obligated by 2011. That's the witching hour. After that, it goes back in a pool, and other states can compete for it."
Nationwide, on average, states have invoiced for 31 percent of their grant and contract funds, according to the new www.recovery.gov data.
West Virginia is behind most of its neighbors by that rough reckoning, which does not include extra Medicaid dollars. Kentucky has spent 31 percent, Ohio has spent 19 percent, Pennsylvania and Virginia have each spent 26 percent, and Maryland has spent 23 percent.
"People assume this money went out quickly," Guthrie said. "That was the intention. How can anybody say yet what the full impact of the stimulus will be?"
'An upsurge soon'
Manchin administration officials say the pace soon will pick up considerably. "We have great projects, but we had to spend a lot of the last year getting ready," said Department of Commerce Secretary Kelley Goes.
"We know it looks slow to people who are looking at this from outside," she said, "but, for government agencies, we are moving at the speed of light."
By the state's figures, Commerce is one of three agencies that have spent less than five percent of their award money. The other two are the Public Service Commission (1 percent) and the governor's office (4 percent).
Of $65 million in awards, Commerce has spent only 1 percent, $639,000.
"The amount of groundwork that you have to do before you can spend this money is obscene," Goes said. "It's not a matter of getting the money, then putting the money right back out."
In West Virginia, the Department of Health and Human Services, which administers Medicaid, has spent a higher proportion of its stimulus dollars than any other agency: 94 percent of $366 million.
They didn't have to do up-front work, said Jim Pitrolo, policy director for Manchin. "They just add the dollars to what they already do."
If the DHHR is taken out of the math, the other West Virginia agencies have spent 19 percent of their stimulus dollars as a group, which roughly matches the federal figures.
National construction associations say that, nationwide, infrastructure projects will accelerate this year. That will happen in West Virginia, Pitrolo said. "It's takes a while to bid the projects. A rough winter's over. You'll see an upsurge soon in construction."
The state Department of Transportation has awarded contracts for $221 million in road and bridge projects, but only 39 percent of those dollars has been paid out, according to the DOT.
Contractors are paid in stages, as the work is finished, Pitrolo said, and 41 projects have not yet started, according to the DOT.
"Stimulus dollars let us do road projects we might not have gotten to in 10 years," Pitrolo said.
West Virginia's stimulus funds cover 39 sewer projects, 14 water projects, more than 150 highway and bridge projects, a statewide broadband project and more than 1,500 line items.
The Department of Environmental Protection has $61 million for 39 sewer projects, but has actually spent only 39 percent of those dollars.
All those projects are under contract, said DEP chief engineer Mike Johnson. "We used the $61 million to leverage money from other sources to a total value of $140 million," he said. "That took time."
The DEP is doing as many sewer projects this year as it normally does in three years, Johnson said. The first project, in Kermit, McDowell County, started in April 2009. "That's 77 percent complete now. All the rest are between 10 percent and 80 percent done," he said.
"It takes time, but we're making a big dent in the problems out there."
Long-term positive effect
"A lot of this money goes to things that will have a long-term positive effect in the state: sewer, water, infrastructure," Pitrolo said. "It's a good investment in the state's future. These projects will be worth waiting for."
The eastern end of Kanawha County will have new sewer and water projects and will be part of the new broadband system, for instance. That will make the area a lot more attractive to business, he said.
The governor's office has received $449 million, by state figures, but has spent only 4 percent. The governor's account includes a $120 million statewide broadband award received a month ago, the Community Service Block Grant, smaller grants, and $217 million to backfill the budgets of the school system and higher education.
"Because we can backfill education with stimulus dollars, we have not had to lay off teachers like some states have," Pitrolo said. "We're backfilling this year's education budget, starting next month, and next year's budget, too."
Manchin also had $48 million in discretionary stimulus dollars. He has made awards for dropout prevention, the National Youth Science Foundation, and repair and replacement of leaking school roofs, Pitrolo said.
And that 1 percent spending at the Department of Commerce?
About half its money - $32 million - will pay for energy-efficient retrofitting of state buildings, Goes said. "You have to go through rights of ways, engineering, historic preservation. You draw up a plan to change windows, and they tell you no."
Commerce soon will award $10 million in competitive energy efficiency grants to local and regional groups. Water projects are planned and starting.
"All that sounds good," Delegate Guthrie said, "but I still have a lot of questions."
'It's not over'
Millions of dollars also went directly to West Virginia counties, cities and nonprofits like community health centers. "We don't have information on those projects, because they don't have to report to us," Pitrolo said.
Individual West Virginians also got millions of dollars in tax credits and programs such as Cash for Clunkers and homebuyer credits. "The Tax Department is adding that up now," Scalise said.
Through the end of March, 2,374 West Virginia jobs were created or preserved, by state report. The DOT stimulus money has "been a lifesaver, and still is," said Steve White, director of the Affiliated Construction Trades Foundation, which represents construction workers. "It came along just at the right time. A lot of our people who would have been unemployed were able to work."
The state originally was allocated $1.8 billion. By 2015, West Virginia most likely will have received well over $2 billion, Pitrolo predicted.
"All the state money is spoken for," he said, but counties, towns and nonprofits can still apply directly to the federal government for selected projects. "It's not over."
Reach Kate Long at (304) 348-1798 or katel...@wvgazette.com.
Read more about West Virginia's stimulus spending later this week in The Charleston Gazette.
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