Project bids lower than estimates, Oberstar says
Rep. Jim Oberstar, D-Minn., told Crow Wing County commissioners Saturday that contracts for projects funded by federal stimulus dollars were coming in considerably lower than estimates because of the poor economy.
"Bids were coming in 25 percent below cost estimate because the private sector is such a free-fall," he said.
Oberstar, chairman of the House Transportation Committee, said if the second phase of stimulus legislation is approved the federal government will have helped build more miles of road than the entire Interstate highway system. The second round of stimulus money would also mean about 2,400 bridges will have been built or improved.
Rep. Jim Oberstar (right), D-Minn., talked transportation issues and federal surplus dollars Saturday afternoon at the Crow Wing County Historic Courthouse. Listening in were County Administrator Tim Houle (center) and Crow Wing County Commissioner Doug Houge.
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"So far, 24,000 lane miles of highway have been rebuilt, expanded ... improved in one year," he said.
These projects, in Oberstar's view, are a wise investment of public dollars.
Earlier last week the congressman in a news release refuted an Associated Press analysis of the impact of stimulus road projects on unemployment. On Saturday he said the projects have created or sustained more than 250,000 direct, on-project jobs with payroll expenditures of $1.3 billion. When indirect jobs are included the total employment number from such transportation investments goes up to 760,000.
These road improvements create jobs and leave a permanent benefit when the project is completed, the Eighth District representative said.
"You're moving goods and people," he said.
Oberstar said that because of the nation's economic meltdown a new export commodity has been noticed - used front-end loaders and construction equipment being sent to China.
"That's the wrong direction," he said of that economic development.
The congressman voiced criticism of both former President George W. Bush and President Barack Obama for being too concerned with how transportation projects would be paid for. He noted that Republican presidents Dwight Eisenhower and Ronald Reagan signed gas tax increases. The mindset of politicians in earlier years was what was good for the country, Oberstar said. The three-cent gas tax that was approved in 1956 amounted to 10 percent of the cost of fuel, he said.
The Crow Wing County officials presented Oberstar with an analysis which tracked the spending of federal stimulus dollars by county and indicated Crow Wing County has not received as much money as might be expected given its population.
Looking at money administered through Minnesota, Crow Wing County has received $19,607,132 with a population of 61,038 people. The comparison of stimulus money to population for other counties was: Todd, $17,207,352 and 23,931; Morrison, $38,637,279 and 31,712; Cass, $27,620,094 and 28,743; Aitkin, $13,623,958 and 17,402; and Mille Lacs, $22,195,420 and 25,018.
Houle asked what the county should be doing to alter this situation.
Oberstar didn't have an immediate answer to the disparity but indicated that economic distress in various counties is sometimes a factor.
County Engineer Tim Bray said federal stimulus dollars are expected to pay for 100 percent of the $2.1 million Riverside Drive project. The county has applied for federal funds to help pay for a $3.7 million improvement project for County State Aid Highway 4 that runs south of Breezy Point.
The public officials also discussed the importance of the planned expansion to four lanes for Highway 371 from Nisswa to Jenkins. Houle said traffic counts are high on that stretch and fatalities have taken place there. The Minnesota Department of Transportation doesn't anticipate having money to start the project until 2018.
"That's too many more people dying," Houle said.
Oberstar agreed the Highway 371 project was important.
"The (Pequot Lakes) bypass needs to happen," he said.
Oberstar, who had started his day in Washington, was scheduled to discuss the Paul Bunyan Trail with a group in Pequot Lakes and then speak at a DFL retreat in Breezy Point Saturday night.
MIKE O'ROURKE may be reached at mike.orourke@brainerddispatch.com or 855-5860.