Much in Obama stimulus bill won't hit economy soon
Legal News Feed
It will take years before an infrastructure spending program proposed by President-elect Barack Obama will boost the economy, according to congressional economists.
The findings, released to lawmakers Sunday, call into question the effectiveness of congressional Democrats' efforts to pump up the economy through old-fashioned public works projects like roads, bridges and repairs of public housing.
Less than half of the $30 billion in highway construction funds detailed by House Democrats would be released into the economy over the next four years, concludes the analysis by the Congressional Budget Office. Less than $4 billion in highway construction money would reach the economy by September 2010.
The economy has been in recession for more than a year, but many economists believe a recovery may begin by the end of 2009. That would mean that most of the infrastructure money wouldn't hit the economy until it's already on the mend.
The CBO analysis doesn't cover tax cuts or efforts by Democrats to provide relief to cash-strapped state governments to help with their Medicaid bills. But it illustrates just how difficult it can be to use public investment to rush money into the economy. It usually takes bids and contracts to announce such developments, which invariably take time.
Overall, only $26 billion out of $274 billion in infrastructure spending would be delivered into the economy by the Sept. 30 end of the budget year, just 7 percent. Just one in seven dollars of a huge $18.5 billion investment in energy efficiency and renewable energy programs would be spent within a year and a half.
And other pieces, such as efforts to bring broadband Internet service to rural and underserved areas won't get started in earnest for years, while just one-fourth of clean drinking water projects can be completed by October of next year.
Related listings
-
Obama, Biden, to visit Supreme Court Wednesday
Legal News Feed 01/14/2009President-elect Barack Obama and Vice President-elect Joe Biden plan to make a preinaugural visit to the Supreme Court. The Obama transition team said the two will visit the court Wednesday afternoon at the invitation of Chief Justice John Roberts.It...
-
Burris denies Senate-seat deals, waits for court
Legal News Feed 01/09/2009Roland Burris raised his right hand in a committee room at the Illinois Capitol, swearing to tell a room full of lawmakers the truth about his appointment by embattled Gov. Rod Blagojevich to the state's vacant U.S. Senate seat.With his promise that ...
-
Burris' best bet could be federal court
Legal News Feed 01/08/2009If Senate Democrats stick to their refusal to seat Roland Burris as a senator from Illinois, his best bet could be getting a federal judge to force open the Senate's doors.Burris would be relying on a constitutional provision listing just three, easi...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.