At an America Recovery and Reinvestment Act (ARRA) construction site outside Orlando yesterday, Vice President Joe Biden and U.S. Transportation Secretary Ray LaHood announced that every state and the District of Columbia met the March 2 Recovery Act deadline to “obligate”—or commit to specific projects—100% of their highway recovery funds. Once funds are obligated to a project, contracts can be bid, workers can be hired, equipment and supplies can be purchased and work can begin on construction projects that create jobs and drive economic growth. Every state met the target by Feb. 26, and more than 30 of them did so at least a week ahead of schedule, putting a total of $26.6 billion to work on highway projects nationwide. Biden and LaHood were joined at the event by U.S. Sen. Bill Nelson (Fla.).
“Construction projects across the country are already creating jobs and upgrading our nation’s infrastructure, but we’re just getting started,” said Biden. “Because these projects were funded on time and, in many cases, under budget, we’re going to be able to put even more people to work improving our highways just as the spring construction season kicks into high gear.”
“I’ve been to recovery projects all across the country, and I always hear the same thing from contractors: This work allows them to keep people working and hire new people, and that’s what it’s all about,” said LaHood. “The states have done a great job in getting all these projects out the door, but to create more jobs and continue strengthening the economy, we have more work to do.”
In just one year, funding from the Recovery Act has improved more than 33,000 miles of pavement across the U.S. Of the more than 12,000 highway projects in all 50 states and the District of Columbia funded through the $26.6 billion Recovery Act investment in highway construction, almost 7,800 are under way, and activity on infrastructure projects like these is expected to ramp up even further this spring as the weather thaws and projects obligated over the winter break ground.
In addition, states around the country routinely received low bids that were 10-20%—and sometimes as much as 30%—below estimates. These lower-than-expected bids are allowing states to stretch taxpayer dollars, complete additional projects and create even more American jobs. For instance, last year Alabama used $37 million in ARRA funds to repave a crucial segment of I-59, a savings of 31% over the initial project estimate of $53.9 million. And in Alaska, the Glenn Highway resurfacing project was awarded at nearly 50% below the original project estimate.
The vice president and LaHood made the announcement at the State Road 25/U.S. Highway 27 construction site in Clermont, Fla., a recovery project that is currently employing over 50 survey, design and construction workers. The $20 million project, which will run through December 2011, is expanding nearly 4 miles of the road from four lanes to six lanes, reducing congestion and improving commute times. Prince Construction, the contractor for the project, says that the Recovery Act project not only saved the jobs of its own employees, but nearly 60% of the funds will go toward hiring subcontractors and buying materials, which will help stimulate the economy and put even more Floridians to work.
More than 800 miles of pavement across the state have already been improved thanks to the $1.3 million Recovery Act investment in Florida highway projects. Of the 588 highway construction projects funded in Florida, 308 of them are already under way.
"Without Recovery Act money, Florida's economy would certainly be in a much deeper hole," said Sen. Nelson. "The faster we get going on new roads and high-speed rail, the better."
