Monday, March 23, 2009

Rural places face challenges getting stimulus aid

Small towns in rural America may have a tough task in securing money from the $787 billion economic stimulus package despite their needs. Larger cities are better equipped to research access to stimulus money, to have shovel-ready projects, and to be able to match a percentage of federal funds, reports Heather Clark of The Associated Press.

Small towns in New Mexico, for example, "will have to compete against Albuquerque, where Mayor Martin Chavez announced the formation of 10 city government teams, organized by subject, to research how the city can access economic stimulus money," Clark writes. That is just one example of larger cities using bigger staffs and more funding to try to increase their share of stimulus money, a luxury many rural communities do not have.

New Mexico Gov. Bill Richardson pledged to help rural communities access stimulus money but has not outlined a specific way to do so. "New Mexico's congressional delegation released a 46-page guide to help local governments and constituents understand which federal departments are funding stimulus projects and how," adds Clark. (Read more)

The town of Panton, Vt., is having a different problem. City leaders submitted applications for two infrastructure projects but learned that that would have to supply 20 percent matching funds. "The town says the 20 percent match was never mentioned and expected the stimulus money would fully fund the projects," writes Darren Perron of WCAX News. "Some smaller towns, like Panton, also say they're also at a disadvantage because it's easier for bigger cities, like Burlington, to raise the matching funds." The total cost of the two projects in Panton was $2 million. Since 20 percent of that would require the town put up $400,000, it has been forced to drop one of the projects. (Read more)

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