Stimulus Intelligence

Tom Frantz of Williams Mullen, and Dwight Farmer, Executive Director of the Hampton Roads Planning District Commission (HRPDC) recently led a discussion with the help of a summary distributed by Williams Mullen Strategies International regarding President-Elect Obama’s proposed economic stimulus package.

(see the complete report “A Proposal to Rebuild America” from Minnesota Congressman Jim Oberstar)

With the current price tag of $800+ billion, $175-185 million is estimated to come to Hampton Roads. Most importantly, Hampton Roads needs to (1) fix infrastructure and (2) jump-start the economy. Infrastructure jobs are 95% American, not outsourced, jobs.

The "shovel-ready" criteria, however, is a huge problem for the Virginia Dept. of Transportation (VDOT). A wish list of projects is NOT allowed in any Metropolitan Planning Organization (HRMPO)’s programming plan, so we’re not very far along in the process in Hampton Roads. Federal stimulus money cannot be used for planning, either. While VDOT is heavy into preliminary engineering studies on projects, it will take tens of millions of dollars to get Virginia projects shovel-ready, money which VDOT hasn’t had to get the plans done in the past.

Also, Virginia respects property owner’s rights, and those permissions for rights-of-way could not, for the most part, be obtained quickly enough to qualify projects.

We must be realistic; Hampton Roads share of this federal package will be a small amount. The anticipated money is approximately equivalent to the value of building one highway interchange.

According to the proposal, federal stimulus monies will go to the state, and the state disperses it to regions based on the 2005 formula. Rural Virginia still has an advantage with the allocation formula.

There is not enough money to address the six major HRMPO projects nor address choke points nor address job creation in a meaningful way.

Virginia’s transportation system is broken and could not be more inefficient. The HRMPO designates projects. However, with no money, the HRMPO can only plan projects.

The six HRMPO projects won’t be done anytime soon, if at all; Hampton Roads must do what it can to advance mass transit and congestion management and mitigation. We can continue to plan; however, if it’s 10 to 15 years before there is any money, those plans are worthless as things will have changed. If we had all the money we needed for the six projects, it would be 10 to 15 years before completion.

Our lack of infrastructure has a direct impact on quality of life, our economy, our community’s development. The Ports of Jacksonville and Charleston, areas who have invested in infrastructure, use this in marketing against in Hampton Roads. The Newport News Shipyard reports 5% of employees are late everyday; this is non-productive time. We must emphasize the criticality of this issue with employers.