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When Local Government are spending MORE money because they took Stimulus Funds, how does that help the economy?

Perkins' wastewater treatment plant is outdated and the town had planned to build a new one for $5 million. To help with the cost, the town applied for, and received, $1.5 million in “free” stimulus money.
The Perkins Journal reported, “The good news: Perkins is receiving money from
the American Recovery and Reinvestment Act for its new wastewater treatment plant. The bad news: ARRA funds come with strings that will increase project costs by 25 percent.”
As a condition of accepting those funds, the town must comply with a number of federal requirements.
These federal restrictions have increased the total cost of the project from $5.26 million to $7.2 million,
offsetting any financial benefit from the grant.

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 10:39 AM on May. 10, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (7)
  • As a result, utility rates for local residents have risen dramatically to pay the costs for accepting the federal assistance. To pay back the loan and the increased cost of the project, the town raised residents’ utility taxes by 60 percent this year.

    grlygrlz2

    Answer by grlygrlz2 at 10:39 AM on May. 10, 2010

  • Over a year later, what has been the impact on the economy in your area?
    grlygrlz2

    Answer by grlygrlz2 at 10:41 AM on May. 10, 2010

  • And the strings attached?

    Do we REALLY want to delve into what those might be?

    Only God knows.
    mustbeGRACE

    Answer by mustbeGRACE at 10:53 AM on May. 10, 2010

  • They will say jobs. I will say, small business could have used it better. However, if I was a family that didn't have an income and I got an 18 month job out of the deal, I would be hard pressed to look past that. It is the way of life in this country. We only care about what is on our plate now, not how the plate will effect the decisions of tomorrow.
    urkiddingright

    Answer by urkiddingright at 11:47 AM on May. 10, 2010

  • We only care about what is on our plate now, not how the plate will effect the decisions of tomorrow.


     I agree with this statement. I just wish I knew why people give politicians a free pass to spend a trillion dollars without long term growth, accountability and responsibility. So many were and still are willing to give Congress and the current admin a free pass to do as they wish... Simply because he isn't Bush. The current administration is riding that wave and that wave is a destructive path of big spending and more federal (costyl) programs...  Programs we cannot afford.. jmo

    grlygrlz2

    Answer by grlygrlz2 at 11:53 AM on May. 10, 2010

  • No, that is not fair, we did give it to Bush too. The bail outs were a bad bad bad idea. All of them. So were the stimulus checks Bush sent. Honestly, Big Business and Local Governments and Congress have taken us for a ride, but we got minimal tax break from Obama and $600 from Bush, so shouldn't we just shut up and be happy? :) Small Business, which is the life blood of this country is being ignored to the Country's detriment. I just find all of our directions either Republican or Democratic to being ruining us. It seems to be a "hey, I want to win" contest and we are getting fucked in the process. And the media is feeding the fuel of it is us vs. them and they just pass bonehead laws while we are busy fighting for our small piece of the pie so we can shut up and be "happy". UGH.

    I am bitter today.
    urkiddingright

    Answer by urkiddingright at 12:01 PM on May. 10, 2010

  • The only funds that came to my county (that I can find, and I've looked..) are for some roadwork (which did not NEED to be done, and it's all been done for a while) and some $ to a few schools. That does sound pretty typical of the feds, to give money, but with so many strings attached that it isn't worth it.

    Are we still blaming Bush for the TARP thing? I don't know that I would place ALL the blame for that on him alone. There were plenty of so-called experts pushing for it RIGHT NOW before the world ends.
    29again

    Answer by 29again at 2:10 PM on May. 10, 2010

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