Mo. plans to spend stimulus package on infrastructure

Missouri could receive as much as $809 million.

By Greg Young

Published Feb. 12, 2009

With Missouri expected to receive $809 million from the federal stimulus package, Missouri legislators are reading for potential changes in the state budget.

The stimulus package, which allocates $39 billion to a "State Fiscal Stabilization Fund," is still in its final negotiation stages in Washington. Gov. Jay Nixon said Missouri will receive as much as $809 million from that pot.

One key detail that Missouri lawmakers are waiting for is how many strings will be attached to the stimulus money the state is expected to receive.

Rep. Chris Kelly, D-Columbia, who serves on the House Budget Committee, said he believes the total amount of money Missouri will receive through the stimulus package is misleading, and that Missouri will get most of their money through specific federal programs within the stimulus bill.

"That number is currently unhelpful, its not one big pot, it's a whole roll of little pots of money, and the question is in which little pot is useable in Missouri," Kelly said.

As to the question of how money allocated freely to Missouri should be spent, most lawmakers, including state House Budget Chairman Allen Icet, R-Wildwood, believe that the money should be used on short-term infrastructure projects to boost the economy.

"It's a one-time gift from the feds," Icet said. "Our plan is to use some of that more for one-time funds, some road repair work, some new buildings."

Increasing infrastructure spending is one way of using potential stimulus money that is garnering a fair amount of bipartisan support.

Rep. Rick Stream, R-Kirkwood, said the Missouri Department of Transportation is prepared to spend quickly any money that it is allocated.

"They are ready to go with $500 million of construction projects that are shovel-ready," said Stream, the House Budget Committee vice chairman.

Increased infrastructure spending is garnering support for a few reasons. Spending on new infrastructure projects can be temporary, and it could decrease the unemployment rate in Missouri.

Missouri's unemployment rate, according to the U.S. Bureau of Labor Statistics, was at 7.3 percent in 2008.

"You are putting people to work, and you will receive a product that will last 50-100 years," said Sen. Scott Rupp, R-Wentzville.

Another area where Icet is looking to use stimulus money allocated to Missouri is to provide tax cuts and rebates to Missourians.

Icet said there are a "variety" of tax ideas he is considering, including tax cuts, rebates and refunds.

Amy Blouin, the executive director of the Missouri Budget Project, said she was optimistic not only about the money that might be allocated to the state, but also about some of the federal programs that could be created in the stimulus.

"I think that it will go to the priorities Missouri cares about," Blouin said. "Some of the funding is dedicated to health care, some to education, some to construction, and I think those are kind of the core things."

A concern among some lawmakers is that Nixon, in his budget recommendations, used federal stimulus money in projecting the state's revenue.

Stream believes the money should be used for short-term investments and not to balance the state budget, which could potentially force the state in an even bigger budget problem in the future.

"He basically uses the $800 million in his budget for expanding and continuing programs in Missouri's budget, and I don't think that's a wise way to use that money," Stream said.

Kelly was also concerned about using stimulus money in the equation for balancing the budget.

"You can't use money of limited duration for a long period of time," Kelly said.