State prepares to receive stimulus funds

N.C. legislators made it clear that they are still uncertain of the implications and process of allocation of the stimulus money that the state is receiving.

In a joint finance committee meeting Wednesday legislators from the N.C. House and Senate expressed uncertainties at how best to allocate the $6.1 billion that North Carolina will receive as a part of President Barack Obama's $787 billion stimulus package.

Roland Stephen assistant director for policy and research for the Institute of Emerging Issues said that even with the stimulus money North Carolina's needs far exceed the budget.

He estimated that $9.8 billion is needed for maintaining schools" $65 billion for maintaining the transport system and $16.6 billion for the water and sewage system.

""The federal stimulus package is a small drop in the bucket in terms of North Carolina's needs"" he said.

Looking for coins in the cushions is not going to be enough in solving these problems.""

Stephen stressed the need for strengthening the state's renewable energy. He said that $183 million from the stimulus package should be allocated for the cause.

""It is one growing step towards the future. How to is much more important than how much"" he said.

Last week, Gov. Bev Perdue announced that Dempsey Benton would be heading the Economic Recovery and Investment Office, which will be responsible for handling the $6.1 billion in stimulus money.

Benton assured legislators Wednesday that the office will adhere to standards of transparency, timeliness and accountability.

The governor wants to maximize the availability of these funds to the state"" he said.

One of the ways the office will accomplish that task is by working with federal agencies in the state that are also receiving stimulus money, Benton said.

The office also wants to ensure that some of the money goes to local governments and public housing agencies across the state, he said.

The state will invest funds to create jobs for the increasing number of unemployed North Carolinians through better education and innovation, he said.

The state's unemployment rate hit 8.7 percent in December.

Benton provided the legislators with a timeline of their expected plans to spend the money.

This is a use it or lose it situation. We have to make sure we use the funds within the deadlines"" he said.

Benton and the governor's office are uncertain about how the stimulus money will affect taxpayers. State legislators still needed to know, for example, whether they would have to mirror the federal government's tax incentives.

There are still tax implications" and this office is going to continue to evaluate those implications" said Chrissy Pearson, press secretary for the governor's office.

There are still a lot of questions that need to be answered"" she said. Right now where we are is sorting through the details to make sure North Carolina is ready.""



Contact the State & National Editor at stntdesk@unc.edu.