Publication

June 19, 2009Client Alert

Governor Jim Doyle Proposes Plan for $100 Million Spending Plan for Department of Transportation Stimulus Funds

On Tuesday, June 16, 2009, Governor Jim Doyle sent the Wisconsin State Legislature’s Joint Committee on Finance four (4) proposed plans for use of federal American Recovery and Reinvestment Act of 2009 (“the Act”) Transportation Funds. The Joint Committee on Finance will meet in the next two weeks to decide whether to approve the Governor’s proposed plans, as required by 2009 Wisconsin Act 2. If approved, the four (4) plans will result in allocation of over $100 million dollars in additional stimulus funds for transportation and building projects in a number of counties, cities, villages, and towns throughout the state, to be let this year or early next year. The additional funds and projects present many opportunities for contractors and other service providers and businesses, which should become familiar with eligibility and project requirements of federally-funded transportation projects, including the additional requirements of the Act.

Governor Doyle’s first plan requests approval of allocation of the remaining $79.6 million dollars in Act funds available for local road and bridge projects to 97 specific projects that will be let in February 2010. The Governor anticipates the project development phase for each of those projects will begin in the near future if the Joint Committee on Finance approves allocation of the remaining Act funds. To date, $79.1 million out of $158.7 million of the Act funds allocated for local road and bridge projects have been awarded for projects that were let in April and May or will be let in June and July.

The second plan requests approval of additional Act funds in the amount of $2,426,380 for two airport projects in Wisconsin—(1) Rehabilitate taxiways at Rhinelander Airport in Oneida County, and (2) Rehabilitate a runway at the Austin Straubel International Airport in Green Bay.

The third plan requests approval of allocation of the remaining $11,558,127 in Act funds available for transportation enhancement projects to 17 specific projects to be let in early 2010. To date, approximately $4,315,230 out of $15,873,357 of the Act funds for transportation enhancement projects have been awarded for three projects: (1) Starkweather Creek Bicycle Path in the City of Madison, which was let in May, (2) Trout Lake Bicycle Trail in Vilas County and (3) Mole Lake Multi-Use Trail in Forest County, both to be let in July.

The fourth plan requests approval of $7,360,000 in Act funds for Department of Military Affairs maintenance and repair projects focused on energy conservation. No specific projects were cited in the Governor’s plan, but the Governor noted that the projects “are shovel ready in the near term and are subject to relatively quick execution . . . [and] will affect nearly every county in Wisconsin.”

Lists of the specific projects covered by each of Doyle’s four (4) plans discussed above can be found at: http://www.michaelbest.com//files//upload/June09DoyleDOTStimulusFunds.pdf

Related Material:

The Governor’s memos to Joint Finance Committee outlining the plan for using federal economic stimulus funds for various projects may be access at: http://www.michaelbest.com//files//upload/June09DoyleDOTStimulusFunds.pdf

This client alert is one of a series designed to provide summaries of the Act and information and guidance regarding opportunities and relief made available through The Act. All of The Act client alerts are available on Michael Best's Stimulus and Economic Recovery Team publications page. For additional information on this topic, please feel free to contact one of the authors of this alert or your Michael Best attorney.

If you are interested in learning about other provisions included in The Act, the Michael Best Stimulus and Economic Recovery Team is prepared to assist you in understanding the implications and in developing and implementing a strategy to secure the benefits of this unprecedented legislation. Specifically, we will assist you to identify opportunities, prepare appropriate proposals and make targeted contacts to secure funds. We will also work with you to ensure that your applications are tailored to meet your needs and that your funded projects proceed in compliance with award requirements and applicable laws.

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