Federal Stimulus: What Role Will General Assembly Have In Spending $6 Billion?

With Pennsylvania estimated to receive more than $6 billion from the federal stimulus package signed into law this week (more details below), the key question is: what role will the General Assembly have in spending all that money-- the equivalent of about 20 percent of the General Fund budget?

 

The rules for spending the money will be coming out over the next few weeks and there are clearly choices states can make in allocating the funding in many of the programs. By law, the General Assembly must appropriate all federal monies received by the state, so the discussion of which options to take will be lively as the House and Senate continue their hearings into Gov. Rendell's proposed budget.

 

And those decisions will come quickly. For example, the PA Infrastructure Investment Authority is set to make its first decisions on wastewater and drinking water projects funded by the stimulus package at its meeting in April, yet there are options available for spending that money to reduce pollution from both wastewater plants and non-point sources of pollution.

 

Here is a partial list of the more than $6 billion in federal economic stimulus funding headed Pennsylvania’s way, according to the U.S. Senate Democratic Policy Committee and the U.S. Environmental Protection Agency:

 

-- $343.7 million for mass transit expenses;

 

-- $258.8 million to weatherize homes;

 

-- $156.8 million for clean water projects (U.S. EPA);

 

-- $65.7 million drinking water projects (U.S. EPA); and

 

-- $100.8 million for encouraging the use of and developing alternative fuels.