Linn County coming up short in federal stimulus funds

Just like in real estate, location appears to be key to cashing in on the federal stimulus program.

Take Monona County in western Iowa, for example. It's home to 8,966 people who own 16,383 vehicles - cars, trucks, trailers, buses and mo-peds. Of the $47,035,324 Monona County is getting from the American Recovery and Reinvestment Act, $46,333,400 is from the federal Department of Transportation for road projects.

Linn County, where 208,574 people live and own 254,000 vehicles, already has spent its $962,000 in federal transportation stimulus funds on a 2.5-mile stretch of Troy Mills Road. The county's total share of the $787 billion act is $12.9 million - a little more than one-fourth of Monona County's slice of the stimulus pie.

The difference appears to be that Monona County, which has been appropriated $5,246 for every man, woman and child, is located on Interstate 29. The county is sharing in the $95 million of federal stimulus funds being used to improve the north-south freeway crossing western Iowa that carries about 15,000 vehicles a day.

By comparison, Interstate 380 in Linn County carries 28,100 vehicles a day on the north side of Cedar Rapids and 44,900 on the south side, according to Iowa Department of Transportation data. So far, no money has been targeted for the highway.

That could change, say spokesmen for Iowa's congressmen.

“It's critical to keep in mind we have a long way to go,” said 2nd District Rep. Dave Loebsack. “The Recovery Act is designed to make long-term investments over time.”

Linn County Supervisor Lu Barron recognizes that the act is a two-year program but is “disappointed the second-largest county in the state is not getting more.”

Apparent disparities in funding may be the result of stimulus dollars being distributed partially through formula and partially at the discretion of state agencies, with projects that were “shovel-ready” getting the early funding, say Loebsack and state officials.

“What we have now is a snapshot in time, and critical balance must be struck between urgency and need,” Loebsack said.

“We have projects ready to go, too,” Barron said.

The county board tells state and federal officials that although they are thankful for the funds and the help in keeping people employed, “we continue to have needs.”

Loebsack is “committed to working with government agencies to make sure that the 2nd District gets its fair share over the long haul, and as we move forward it is essential that we continue to look at poverty, unemployment and need.”

In the long haul, Iowa is expected to get $2.5 billion before the stimulus ends and is moving quickly and efficiently in using the recovery funds, said Gov. Chet Culver.

“Iowa continues to lead the way in making use of federal recovery funds to meet our infrastructure needs, support good jobs and work out of this economic recession,” Culver said in July.

To be fair to Monona County, the stimulus dollars were never meant to flow equally to every county, city or state.

“The money is supposed to flow to counties that are economically distressed,” said Jon Murphy, director of Iowa's Office of State and Federal Relations. “I think Iowa has done a good job focusing projects in areas that are economically distressed.”

Monona County's unemployment and poverty rates are higher than Linn County's and higher than the state averages.

Based on data from Recovery.gov, it appears that formula has been unevenly applied. Polk and Linn counties are the state's most populous. Their unemployment rates are nearly the same. Linn's poverty rate is about a quarter higher than Polk's. Polk's $60.4 million in stimulus funding is nearly five times as much as Linn's. Polk County is receiving $142 per person to Linn County's $62 a head.

Johnson County, with a low unemployment rate but a poverty rate nearly 150 percent of the state average, appears to fare better than Linn. It is pulling in $17 million, or $134 per person.

In some cases, the formula appears to be working. Lee County, with a 9.3 percent unemployment rate, is getting $471 per person to jump-start its economy. Decatur County, where the poverty rate is 19.3 percent, is in line for $516 per person.

On the other hand, Shelby County, with a 4.1 percent jobless rate, is getting $136 per person – more than double Linn County's share. And Plymouth County, with a poverty rate about one-third of Johnson County's, is getting $8 more per person than Johnson County.

Looking at the funding more broadly, Eastern Iowa hasn't fared as well as other parts of the state. The 2nd Congressional District, with 20 percent of the state's population, is getting 12 percent of the ARRA funding while the 5th District – home to the I-29 improvements, with 19 percent of the population, is getting 35 percent of the funding.

Iowa's 1st District fares somewhat better, pulling in 25 percent of the state's ARRA funds. That's thanks in part to Scott County's receipt of nearly $70 million from the Department of Education. Linn and Johnson counties received $10.7 million and $5.4 million, respectively, in education funds.

Scott County's $77.8 million, or $473 per person, is more than any other county received. Pocahontas County was at the other end of the spectrum, receiving $136,561, or $18 per person. Butler County also received $18 per person.