DOH set to roll on stimulus spending

The state's Division of Highways could start advertising for construction contracts related to the federal stimulus package as soon as next week, state lawmakers were told Friday. "The dollars are going to flow into the economy of West Virginia very, very quickly," said Tom Smith, state division administrator for the Federal Highway Administration, which has worked with the state to prepare for the influx of money.

Smith, who spoke before the U.S. Senate finished voting Friday on the final version of the American Recovery and Reinvestment, cautioned members of the Senate Committee on Transportation and Infrastructure that details could change. But the package will likely give West Virginia between $250 million and $275 million for road projects, he said.

West Virginia will have to pay the money up front because the federal government will distribute it on a reimbursement basis, he said. "The state will have to manage that cash flow carefully," Smith said.

Many of the projects will be short-term. If work starts in spring, he said, "a lot of these projects will be finished up by the end of the year." But the final bill might include money for competitively awarded grants for larger projects of regional significance, Smith said. That could include U.S. 35 in Mason and Putnam counties, or Southern West Virginia's Heartland Corridor, meant to speed freight through the area, he said.

The state's challenge will be long-term planning to help the economy once the federal stimulus funds run out, Committee Chairman Sen. John Unger said after the meeting. That's why his committee is researching innovative financing methods for roads and infrastructure. "Once a project is done, it's done," said Unger, D-Berkeley.

A big focus of the legislative session will be ensuring the federal money is spent wisely, Unger said, adding the stimulus could help West Virginia avoid as deep a recession as many other states are experiencing. "We have a whole year to be able to try to divert that train," Unger said. "By this time next year, we may not get the full brunt" of the national recession.