Experts hope future stimulus package will provide more infrastructure funding
By: Monica Unhold

Experts are divided as to whether the American Recovery and Reinvestment Act had a significant impact on employment in the region.

“It’s just hit or miss out there, some people don’t feel it at all, others can point to real jobs,” said Benjamin Haddad, principal at California Strategies LLC.

Regional leaders discussed the impact of the stimulus package Tuesday -- just over a year after the passage of ARRA -- during a monthly meeting of the Urban Land Institute, San Diego/Tijuana chapter.

The San Diego Association of Governments was able to create a $1 billion investment in local infrastructure by leveraging $329 million in federal stimulus funds with other funding sources -- including a revenue-swapping scheme with member cities. Coupled with $900 million in ARRA funds to the local military, the investment has helped the county maintain an unemployment rate hovering at 10 percent, compared with the state average of 12.5 percent, said Gary Gallegos, executive director of SANDAG.

The additional funding allowed the Navy to “front-load” projects in the pipeline, said Capt. Keith Hamilton, director of Facilities and Environment, Navy Installations.

“It’s something that made a big difference to the military recapitalization,” Hamilton said.

The funds also accelerated the military’s foray into sustainability. The Navy has set a goal of attaining Leadership in Energy and Environmental Design (LEED) Silver status for all of its new buildings under the benchmark U.S. Green Building Council rating system, Hamilton said.

Investments in the San Diego region include $600 million for medical facilities, most notably the $560 million hospital planned for Camp Pendleton.

“It’s going to provide a much-needed improvement for our sailors and marines and their families who use those facilities during a time of war,” Hamilton said.

The Navy also is preparing for additional troops in the region by investing $200 million into housing and child-care facilities and $200 million for energy projects, Hamilton said.

The largest projects in the San Diego region include the Interstate 905 project, construction of state Route 76 and the reconfiguration of the interchange between interstates 5 and 805, Gallegos said.

SANDAG chose to focus on projects that significantly increase the region’s attractiveness to business such as the interchange project, which will ease commutes in one of the most job-heavy regions of the county.

“It’s a bear to get out of there (Sorrento Valley during rush hour) because we just don’t have the infrastructure,” Gallegos said.

The city also is investing $600 million into the Blue Line Trolley and is in the process of purchasing 57 low-floor trolley cars.

Though many are experiencing the benefits of the stimulus package, it may have long-term negative impacts, Gallegos said.

“We’re borrowing from our kids and possibly our grandkids to figure out what we've got to fix right now,” Gallegos said.

The stimulus package could have been allocated in a way that created more jobs, Haddad said. A relatively small portion funded infrastructure projects, while much of the money went to tax incentives.

Overall ARRA was like a “big Christmas tree” where everyone received a special deal, Haddad said.

Many expect a future allocation of stimulus money will focus more on infrastructure.

The nation’s water infrastructure could use an infusion of federal funds and the state is certain to need more than the $11 billion provided by a November ballot measure, Haddad said.

“If I had it my way, I would have liked to see more money going into those types of things,” Haddad said.

SANDAG is preparing for another stimulus act by compiling a list of $1 billion in infrastructure needs in the region.

“The government has shown a preference toward shovel-ready projects and we want to be prepared,” Gallegos said.