In an effort to boost the ailing economy, Congress and President Obama have created a federal stimulus package to generate jobs and new industries that will prepare the United States for a prosperous future. Called the American Recovery and Reinvestment Act (ARRA), the $787 billion package started flowing to state and federal initiatives at the beginning of February. As of the last available reports, Massachusetts had been allocated approximately $9 billion in stimulus funds, of which the Commonwealth has received nearly $3 billion to date. Although those numbers are tentative, Massachusetts has earmarked this funding for a number of significant projects. Over 275 volunteers appointed by Governor Patrick worked for three months to identify areas where the state could receive funding, and helped cities and towns apply for over 8,000 individual projects. These initiatives impact nearly every part of the Commonwealth, and include funding for education, housing, public safety and security, transportation, labor and workforce development, research and technology, and clean energy and the environment.

The funds allocated to Massachusetts are divided into categories depending on their purpose. An estimated $2 billion has been allocated for education funding, while clean energy and environmental programs will receive approximately $500 million. Cities and towns are able to apply for funds for specific projects that meet certain criteria, including wastewater plants, public safety facilities, city/town buildings and transportation projects. For example, Saugus will receive just over $4 million subsidized by the ARRA for a Clean Water Project that will improve the city’s sewer system. These funds are available to municipalities and state departments via grants, loans, or bonds, depending on the project. Since projects will need to be underway within the next two years if they are to stimulate the economy, only “shovel ready” projects, or those ready to begin construction immediately, are eligible for funding. In order to ensure that the money is spent wisely, stimulus funds cannot be used for purely recreational projects like beaches, parks and stadiums. New construction or rehabilitation of municipal buildings, hospitals, parking lots and small sewer or water projects are also prohibited from receiving funding.

Massachusetts has created several key initiates to take advantage of these funds, one of the most ambitious being the Accelerated Bridge Program. Put forth by the Department of Conservation and Recreation (DCR), this program is intended to improve the condition of bridges in Massachusetts while also creating jobs and stimulating economic development. Under the direction of MassHighway and the DCR, over 200 bridges will be replaced or rehabilitated throughout the Commonwealth over the next several years. Massachusetts will receive nearly $3 billion in stimulus funding for this project alone. Coupled with investments that will lower costs associated with healthcare, as well as strategic tax cuts, the Accelerated Bridge Program and similar projects should created nearly 80,000 jobs in the Commonwealth, helping to improve the situations of working families and our overall economy.

For the federal stimulus to maximize results and perform most efficiently, it is essential that accountability and transparency are our top priorities. Especially considering the size of the stimulus, citizens who trust government with their tax dollars deserve to see that this money is being spent in the best possible manner. We in the legislature established the Joint Committee on Federal Stimulus Oversight to keep state and local government accountable, and we will continue to track every stimulus dollar, on every project, from start to finish. In an effort to keep the recovery process transparent, the identities of all projects and bidders, including the winning bidder, are being made publicly available. All projects are open for bidding statewide, as well. Mass.gov/recovery provides all of this information to the public, keeping the recovery process as open and transparent as possible.

The stimulus plan has ambitious goals. Nationwide, the plan is expected to save and create 3.5 million jobs, while maintaining a high level of transparency and allowing citizens to track the spending of their tax dollars. Because the majority of the money has not yet been spent, it is still difficult to make concrete predictions regarding who will benefit and by how much. Initiatives that will computerize health records to save on health care, modernize buildings and homes to save in energy costs, increase college affordability, improve bridges, roads, highways and mass transit systems, and implement a tax credit for working households will do more than simply shore up our financial system, however. The goal is to invest this money to make permanent improvements in America and its future prosperity, while at the same time repairing the current economy.