Funding doubts

All those billions of dollars in federal stimulus money to build new highways and bridges may not be that effective in reducing unemployment.

An Associated Press analysis of infrastructure spending in the $787 billion stimulus bill found little effect on unemployment rates regardless of whether a county received road construction funds.

After reviewing 700 counties that received funds and an equal number that did not, the AP concluded that "there was no difference in unemployment trends between the group of counties that received the most stimulus money and the group that received none."

The survey found several factors diminished the impact of the funding.

The transportation spending was too little to move a $14 trillion national economy.

"It would be unlikely that even $20 billion spent all at once would be enough to move the needle of the huge decline we've seen, even in construction, much less the economy," said Kenneth D. Simonson, chief economist for the Associated General Contractors of America.

What job creation might have occurred could not close the unemployment gap created when thousands of jobs are lost in manufacturing and other industries.

Even "shovel ready" projects have had limited impact. Smaller firms find themselves unable to bid on larger projects.

The administration claims the stimulus spending law with its varied forms of economic aid has created or saved jobs. The stimulus has done that, but administration claims of 1.6 million new or saved jobs have run into other trouble after closer scrutiny found reporting discrepancies.

The White House and Congress defend the overall stimulus spending as good public policy and point to the long-term benefits from improved infrastructure.

The AP survey challenges prevailing political thinking as Washington gears up for another $75 billion stimulus package with $28 billion for roads and bridges.

Highways and bridges are tangible projects voters use every day. Their visibility also makes a good backdrop for photo-ops.

However, the AP findings raise skepticism about acting too hastily to spend more taxpayer dollars until the effects of the first stimulus can be better assessed.