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Web posted Friday, June 26, 2009

Stimulus money to pave the way on Alaska projects

By Rob Stapleton
Alaska Journal of Commerce

Alaska will be officially under construction for months to come as hundreds of millions of dollars in federal stimulus money heads North.

The state stands to receive roughly $929 million in stimulus money, though the number is still fluctuating, according to state officials. The governor has accepted 97 percent of the available stimulus money offered.


  Construction, like this past project in Anchorage, to roads, bridges, culverts and airports in Alaska will increase this year as federal stimulus funds pump $929 million into the state. File Photo/Rob Stapleton/AJOC   
More than half the total is slated for a variety of capital projects, Karen Rehfield, director of the state office of management and budget, told members of the Anchorage Chamber of Commerce June 22.

A total of $267 million is slated for transportation projects, Rehfield said. Of that, $176 million is for roads, bridges and culverts, while $82 million is to go toward airport construction statewide and $9 million toward transit programs.

Some $94 million in federal stimulus money is already obligated for "shovel ready" projects, according to officials with the Alaska Department of Transportation.

"With more than a dozen essential, shovel-ready projects statewide, my team has been relentless in seeing that the ARRA (American Recovery and Reinvestment Act ) deadlines were met to put projects out to bid and Alaskans to work," said DOT Commissioner Leo von Scheben.

Rehfield said DOT estimates that 10 to 15 jobs are created for every $1 million spent on construction projects. "So this will really help boost the economy," she said.

The rest of the money will go to various state and federal agencies within the state, including: $197 million Department of Defense programs and projects; $171 million for education; $152 Indian Health Services; $49 million to the U.S. Army Corp of Engineers; $70 million for water quality projects; and $17 million for unemployment benefits to include training and education.

As of June 16, DOT had obligated more than $94 million in funding toward projects throughout Alaska. Projects immediately ready were the resurfacing of the Glenn Highway between Eagle River and Eklutna, resurfacing Kodiak's Rezanof Drive, resurfacing Sterling Highway from Soldotna to Kasilof, repaving in Yakutat, replacing Gustavus' causeway, and reconstructing the Parks Highway from Willow to Kashwitna and Kotzebue's Shore Avenue, according to DOT officials.

Also funded is the Alaska Highway rehabilitation from Milepost 1308 to the Tok Weigh Station.

During her talk to the chamber, Rehfield continually pointed out that the federal stimulus money is a "one time" deal. The money is targeted toward certain types of projects, and a thorough accounting of the stimulus money will be required by the state, she said. The governor is ultimately responsible for the audits.

She also stressed that the goal of obtaining the funding was to help private-sector businesses, not to grow government.

Rob Stapleton can be reached at robstapleton.@alaskajournal.com.

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