Some stimulus projects under way in Michiana

by Kelli Cheatham (kcheatham@wsbt.com)

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Stimulus money

Indiana has already spent millions of stimulus dollars on 180 construction projects in 78 counties. (WSBT photo)

By WSBT News1

Story Created: Jun 25, 2009 at 4:43 PM EST

Story Updated: Jun 30, 2009 at 10:48 AM EST

ST. JOSEPH CO — Federal stimulus money was supposed to create new jobs. But at least one local construction company says it may be the only thing keeping them in business.

Vice President Joe Biden announced Thursday half the stimulus dollars have already been doled out. He also said areas with higher unemployment rates were supposed to get more money.

The government set aside a big chunk of the stimulus money to improve roads and transportation. So far, Indiana has already spent millions of stimulus dollars on 180 construction projects in 78 counties.

WSBT found out that money is not necessarily creating new jobs. But it is keeping the unemployment line shorter.

Of the 180 projects already up for bid, 22 are in our area:

Elkhart County: 7
Marshall County: 6
St. Joe County: 3
Fulton County: 2
Kosciusko County: 1

One of them is the ditch work on State Road 331 in St. Joseph County. Another is re-paving the runways at Elkhart’s Municipal Airport.

But keep in mind — not all road construction is funded by federal stimulus money.

“INDOT continues to do all of its regular construction,” said spokesman Bruce Childs. “And the funding through projects on the ARRA [American Recovery and Reinvestment Act] is like icing on the cake.”

Reith Riley Regional Vice President Gene Yarkie said if not for stimulus money, the company would be in deep trouble.

“We’re a seasonal employer, but we’re having a hard time getting people back to work,” he told WSBT.

Reith Riley has enough workers to take on more jobs, but the competitive bidding process makes that a tough task.

“You need to be the first bidder, the lowest,” Yarkie explained. “And if you’re second or third, it doesn't do much for you. So it's been a struggle.”

President Obama signed the stimulus bill into law in February. The money is there, but Childs said the timetable between when a project is submitted and when it actually begins has a lot of variables.

“One is a 10-week review period where INDOT and Federal Highway review the project. Then you have to get the bid awarded, and then the contractor has to get all of his work done to actually get it started,” he said.

All the stimulus road work happening so far is through the state, but roughly $12 million of unspent money has been allocated for local road construction in Elkhart and St. Joseph counties.

The stimulus money is only available for a certain amount of time. All of the state funds and local project dollars must be obligated for specific projects by March. Work on all the projects has to be finished by February 2012.

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