Projo Biz Blog

Federal stimulus spending not reaching R.I.

1:23 PM Thu, May 28, 2009 |
By Benjamin N. Gedan    Email this author |   Email this entry
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USA Today reported Thursday that federal agencies have not directly spent any stimulus money in Rhode Island, despite the state's sky-high jobless rate.

"The $787 billion recovery package was intended to help turn around the economy using federal money to create jobs, especially in places where the recession has taken the most severe toll," the newspaper reported. "But, with few exceptions, that money has not reached states where the unemployment rate is highest."

As of May 8, Rhode Island had spent $109 million in federal stimulus money, according to state records. But the vast majority of that was used to provide food and medical care for the poor, programs that do little to spark job creation.

That has prompted complaints from Governor Carcieri, who said in May that the historic, $787 billion recovery package was "not having any significant impact right now."

In all, federal agencies have awarded $4 billion in contracts since lawmakers approved the stimulus package, not counting money transferred to state governments for highway repairs and other projects, USA Today reported. Though Rhode Island's 11.1 percent jobless rate was the fourth highest in the country in April, after Michigan (12.9 percent), Oregon (12 percent) and South Carolina (11.5 percent), it has so far not benefited from any federal contracts.

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