Yesterday, President Obama made a visit to the Department of Transportation to applaud them and the rest of the nation for their work spending those stimulus dollars, marking the occasion of the 2,000th infrastructure project to be approved for Federal stimulus money. In his speech, the president joked that something unusual had happened at DOT and throughout the land: "We can utter a sentence rarely heard in recent years: This government effort is coming in ahead of schedule and under budget."
Now, some may have thought it would take months to get to this point. But in part because of the hard work and commitment of the people in this department, we approved these 2,000 projects in just 41 days.However, what is most impressive--or depressing, depending on your perspective--is just how little contractors are willing to charge for such work:
And that's why I'm pleased to hear that in state after state across America, competition for these projects is so fierce, and contractors are doing such a good job cutting costs, that projects are consistently coming in under budget. The final bid for one road project in Connecticut was $8.4 million less than the state budgeted for. Another one in Louisiana was $4.7 million less. A project at BWI Airport will be completed for $8 million less than expected. Bids for projects in North Carolina have been 19 percent under budget. Colorado is reporting bids up to 30 percent less than they expected. And the officials in California have seen bids that are close to half as much as they had projected. And because these projects are proceeding so efficiently, we now have more recovery dollars to go around. And that means we can fund more projects, revitalize more of our infrastructure, put more people back to work, and ensure that taxpayers get more value for their dollars. [Emphasis added]The big question to our minds, though, was where, how, and, most importantly, for what will that surplus stimulus be allocated? For example, does California, through its thrifty bidding processes, get to build twice as much as expected? Or does that money go back to the Feds to be reallocated? Neither Governor Schwarzenegger's office nor the Times knew the answer to this question, and the Obama press office did not return calls seeking comment. Still, more money and more work is always a good thing. Now we can only hope its the kind of aspirational work planners and architects have been clamoring for and not just more repairs and repaving. Not that that's a bad thing. The renderings just aren't as sexy.