Thursday, January 8, 2009                                                                    Archive  |   Client Login

Welcome to 2009! There has been a lot of news about the upcoming government stimulus program and its growing list of proposed projects seeking funding. Earlier this week, Congress convened for its 111th session and President-Elect Obama and his transition team arrived in Washington DC. Every day more details are being discussed about the newly named American Recovery & Reinvestment Plan. Congressional leaders and the incoming administration are negotiating the components of the plan. While they had hoped to have a bill on the President’s desk on inauguration day, that date will likely slip into February.

This week Onvia released its 2009 Government Market Outlook which summarizes the findings of our recent survey of more than 4,000 government executives, managers and purchasing officials at state, local and educational agencies. The survey looked at projected spending activities in government agencies throughout the country and across the categories of infrastructure, technology and business services.

Report Highlights Include:

▪ 45% of local, state and educational entities expect to maintain or increase spending activity in 2009
▪ 20% expect an increase in spending activity across 2009
▪ 25% say levels will remain the same as 2008
▪ 55% expect spending activity to decrease in 2009

Overall, state and local leaders are somewhat more optimistic about 2009 as details of the Federal stimulus plan emerge. That said none are expecting intervention by the Federal government to be a silver bullet. Rebuilding the nation’s transportation systems along with investments in technology will spearhead spending priorities for government agencies as they continue with modernization plans. Business services such as financial and management consulting will see nominal growth in 2009 with a majority of agencies reporting no intention to increase spending in this area.

Download your FREE copy of the Onvia 2009 Government Market Outlook

If you haven’t yet, I encourage you to register for our upcoming 2009 Government Stimulus Webcast and get the Inside Track from Government Insiders. Due to the overwhelming response our January 13th session has “sold-out.” We have added an additional webcast at 12:00 noon/9:00AM PT on January 14, 2009. We have recruited Tom Warne, Former Executive Director of the Utah Department of Transportation and James Dillon, Former CIO of the State of New York, who will, along with Onvia’s expert, Michael Balsam, will share their views of the year ahead for U.S. government markets.

Download the Recording

We will continue to keep you informed about new developments and bring you first hand insight into the government stimulus initiative. It has been great to hear from so many of you in recent weeks; please continue to send me your questions and I will answer them directly or address them in a future advisory, mike@onvia.com.

Mike Pickett
Onvia President

Obama taps performance officer, vows restraint

For many businesses, Christmas may come in January, when Congress is expected to pass an economic stimulus package containing billions of dollars in new spending and tax breaks.

Nancy Killefer will work with federal agencies on performance standards

WASHINGTON - President-elect Barack Obama promised Wednesday to scour the federal budget to eliminate what doesn’t work and improve what does to “put government on the side of taxpayers and everyday Americans.”

Obama’s comments came during a press conference in which he named Nancy Killefer as his administration’s chief performance officer, creating a new White House position as part of an effort to eliminate government waste and improve efficiency.

“We can no longer afford to sustain the old ways when we know there are new and more efficient ways to getting the job done,” Obama said at the conference held at his transition headquarters.

MSNBC.com January 7, 2009

http://www.msnbc.msn.com/id/28538966

Obama Pledges Entitlement Reform to Curb Spending

President-elect Barack Obama said Wednesday that reforming massive government entitlement programs—such as Social Security and Medicare—would be "a central part" of his effort to control federal spending.

Obama made the pledge but provided few details as he named Nancy Killefer as his administration's chief performance officer, creating a new White House position aimed at eliminating government waste and improving efficiency.

"We expect that discussion around entitlements will be a part, a central part of those plans," Obama said at a news conference. "And I would expect that by February in line with the announcement of at least a rough budget outline we will have more to say about how we're going to approach entitlement spending."

Associated Press, J. Scott Applewhite, January 7, 2009

http://www.cnbc.com/id/28540371


Obama Eyes $300 Billion Tax Cut

Huge Breaks for Firms, Individuals Are Aimed at Winning GOP Support for Stimulus

The size of the proposed tax cuts -- which would account for about 40% of a stimulus package that could reach $775 billion over two years -- is greater than many on both sides of the aisle in Congress had anticipated.

As for the business tax package, a key provision would allow companies to write off huge losses incurred last year, as well as any losses from 2009, to retroactively reduce tax bills dating back five years. Obama aides note that businesses would have been able to claim most of the tax write-offs on future tax returns, and the proposal simply accelerates those write-offs to make them available in the current tax season, when a lack of available credit is leaving many companies short of cash.

A second provision would entice firms to plow that money back into new investment. The write-offs would be retroactive to expenditures made as of Jan. 1, 2009, to ensure that companies don't sit on their money until after Congress passes the measure.

http://online.wsj.com/article/SB123111279694652423.html

States assemble highway wish lists for federal stimulus money

Missouri has 34 transportation projects worth $510 million on its ready-to-do list, while Kansas has 18 worth $655 million.

Many projects involve repaving crumbling highways, replacing faulty traffic signals and widening some city roads. But don’t expect them to be as visible as a new Paseo Bridge across the Missouri River or a wider Interstate 435 through Overland Park.

“A lot of it’s not real sexy,” said Pete Rahn, director of the Missouri Department of Transportation. “It’s the kind of stuff that will make our system better, but it’s not transformational.”

“A lot of the projects that move the fastest will be bread and butter … preservation work that’s absolutely essential to keep key stretches of highway in good shape so they last for years,” said John Horsley, executive director of the American Association of State Highway Officials.

Kansas City Star, Brad Cooper, December 31, 2008

http://www.kansascity.com/105/story/958853.html

State seeks federal highway rescue

State (Pennsylvania) lawmakers fell short of fixing a shortfall in revenue to pay for roads, bridges and mass transit programs, yet local transportation leaders say 2008 was not a total failure.

Two of the state's high-ranking transportation officials, both from Western Pennsylvania, said lawmakers are eager to take advantage of a potential federal windfall in 2009.

"We were in a crisis management situation," said state Rep. Joe Markosek, D-Monroeville, chairman of the House Transportation Committee. "Many of our transit organizations were near bankruptcy, and we had many roads and bridges that were badly deteriorating."

Tribune-Review, Jim Ritchie, December 31, 2008

http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_604925.html

Infrastructure: A local rush to get a share of Obama stimulus money

Ridgefield First Selectman Rudy Marconi says "chaos" has engulfed efforts to find projects that qualify for President-elect Barack Obama's infrastructure stimulus program.

Connecticut state officials have their own priorities for infrastructure that don't include local needs. And the state Department of Transportation, which would be in charge of transportation infrastructure projects, has a shaky record when it comes to competence and interest in this region's needs.

The local projects submitted to the state for the infrastructure program are heavy on road work. Bethel would like $1.5 million to replace the Walnut Hill Bridge. Danbury would like $1 million to replace the Backus Avenue bridge. New Milford would like $838,000 for the Grove Street realignment project. Sherman would be happy to get $120,000 for culvert repairs on Chapel Hill Road.

Newtown has a creative request -- that Obama stimulus money pay the $40 million cost of the high school expansion project approved by voters.

Gov. M. Jodi Rell says the state is looking for projects that are "shovel ready," meaning with designs and permits already in place. This would meet Obama's goal of getting a quick start on projects to create jobs.

News-Times, December 31, 2008

http://www.newstimes.com/ci_11338885

Westfield has eye on federal money

Trail work among local proposals for stimulus funding

The economic stimulus package that the Obama administration is proposing could extend the Monon and Midland trails, improve Westfield roads and fund a variety of other projects.

The federal government has asked local governments for shovel-ready projects that could benefit from money from Washington. Westfield has listed more than $35 million in requests, including $2 million for the trails.

Collectively, Hamilton County entities hope to snag more than a quarter-billion dollars through the massive infrastructure improvement plan the next administration is putting in place to stimulate the sluggish economy. (See the article for the list of projects)

Indianapolis Star, Robert Annis, January 2, 2009

http://www.indystar.com/article/20090102/LOCAL0103/901020338/1114

One-time fix won't secure transportation fund

In 2009, listen for the diesel sounds from construction equipment trying to jump-start the economy through major transportation construction projects.

From Gov. Jon S. Corzine's plan to fast-track $2.8 billion in major transportation construction to expectations that President-elect Barack Obama will turn to federally financed transportation infrastructure projects as a way to stimulate the economy, 2009 could shape up to be the year of the orange work zone sign.

The $2.8 billion program proposed by Corzine contains many projects which have been waiting for their turn in the funding line, such as replacing the Route 72 Manahawkin Bay bridges, ongoing rehabilitation work on the Pulaski Skyway, and repaving sections of routes 35, Interstate 287, Interstate 295 and Interstate 80. Numerous bridges on routes 9, 206, 31, and 22 are on also the project list

Gannett New Jersey, Larry Higgs, January 2, 2009

http://www.courierpostonline.com/apps/pbcs.dll/article?AID=2009901020355

Oakland's $89 million wish list

OAKLAND — City officials have put together an $89 million wish list of infrastructure projects they hope might be included in President-elect Barack Obama's anticipated economic stimulus package — and Oakland's incoming council member believes the city should push for even more.

The projects on the list would create 1,043 jobs in Oakland, officials estimate, and are listed in a recent U.S. Conference of Mayors report that includes some 15,211 ready-to-go infrastructure projects in 641 cities across the country.

At-large Councilmember-elect Rebecca Kaplan believes Oakland can make a strong argument that the federal government should spend more on urban infrastructure projects, pointing to what she calls a "historic underinvestment in Oakland" that should be reversed.

Oakland Tribune, By Kelly Rayburn, January 2, 2009

http://www.insidebayarea.com/oaklandtribune/localnews/ci_11351062