Maryland's Request for Stimulus Money

Following is a letter from Governor Martin O'Malley to Congressman Chris Van Hollen requesting federal stimulus aid. The Governor sent identical letters to the rest of the state's Congressional delegation.

State of Maryland
Office of the Governor

December 8, 2008

The Honorable Chris Van Hollen
U.S. House of Representatives
2412 RHOB
Washington, DC 20515-2008

Dear Congressman Van Hollen:

Last week, I had the opportunity to join governors from across our nation at a bi-partisan meeting with President-Elect Barack Obama and Vice-President-Elect Joe Biden. I am pleased that the incoming Administration has moved quickly during the transition process to secure input from the nation’s governors with regard to the economic challenges facing the states.

We discussed, in large part, the fact that governors continue to be faced with the unfortunate necessity of making strong cuts to programs that their constituents need the most and looking to their own workforce to make sacrifices to this end. One of our requests was that, in beginning work on an economic recovery package, the new Administration work with the Congress to provide governors with maximum flexibility to respond to the very unique needs of their communities.

Specifically, we encouraged them to consider some of the following priorities as they collaborate with you:

An expansion of unemployment insurance – to preserve workers’ expiring benefits;

Medicaid funding (in the form of increased Federal Medical Assistance Percentage) for states so that they can continue to provide health care to the growing populations that need it in these difficult times;

An aggressive investment in the kinds of “ready-to-go” infrastructure improvement projects – construction and/or repair of roads, bridges, tunnels, transit systems, parks, sewers, energy efficiency upgrades, information technology systems, (health IT, public safety and other services) and schools, to offer only a few examples – that can immediately put America back to work in a targeted and efficient manner; and

A flexible block grant to states that can be used to craft the most appropriate solutions to the very unique challenges they face.

As you prepare for the start of the 111th Congress and continue efforts to address the national economic crisis, I wanted to provide you with an update on the changing dynamics impacting Maryland’s transportation, public works and housing infrastructure programs. Several pieces of federal legislation are proposed for expedited action in January, many of which would provide much needed relief to the strained transportation system, provide the resources necessary to initiate construction of priority projects in our State, and create hundreds of new jobs to recharge the flailing state and national economies.

Speaking specifically to our transportation needs, due to declining revenues this summer and fall, the Maryland Department of Transportation (MDOT) made budgetary deferrals of over $1.1 billion to the State’s six-year transportation improvement program. Prolonged impacts of vehicle titling requirements and motor fuel taxes will require us to make even deeper cuts into the capital programs for transit and highways as well as pare back the operating budgets of all MDOT agencies. We therefore stand ready to make immediate use of federal funding, should it be provided to states through Congressional action.

MDOT has identified at least 50 projects with a total estimated cost of more than $310 million that could be underway or advertised within 180 days of enactment of federal infrastructure funding provisions in an economic recovery bill. Among these projects are $100 million in highway resurfacing, $50 million in bridge rehabilitation, and $15 million in safety improvements that would provide guardrails, traffic signal upgrades and accessibility improvements. Another $18 million could go to Baltimore area transit needs, $48 million to MARC rail projects, and $83 million for aviation. Furthermore, full funding is needed for the Army Corps of Engineers Operating and Maintenance budget to ensure that critical dredging projects in the Chesapeake Bay do not slip, endangering maritime safety, the flow of commerce and the environmental health of the Bay.

Moreover, the Maryland Department of the Environment (MDE) has identified more than 100 much needed water and wastewater infrastructure projects with a total estimated cost of nearly $1 billion that could commence construction within the required time frame. Many of these projects will significantly and directly benefit the Chesapeake Bay by reducing nutrient pollution to the Bay and its tributaries. They include construction of new or upgraded wastewater treatment plants, installation of enhanced nutrient removal technology at wastewater treatment plants discharging into the Bay or its tributaries, the replacement and upgrade of sewer lines with inadequate capacity to reduce sewer overflows and storm management projects to reduce runoff of pollutants into streams and other water bodies.

In addition, the Maryland Department of Housing and Community Development (DHCD) has identified a range of infrastructure projects nominated by nine small local governments as well as 14 affordable rental housing projects that will help address critical needs across the State. The finance and construction of both types of activities has been severely limited in the wake of the ongoing challenges in the financial markets. The infrastructure projects, which total $100 million, range from water and sewer projects in BRAC-impacted Aberdeen to street improvements in Berlin to a police station in Laurel. The affordable rental housing projects total $119 million in construction costs and would create 1,080 units to serve individuals with disabilities, seniors, and families. These developments include projects that will revitalize public housing, build capacity in BRAC-impacted jurisdictions, and preserve existing affordable housing units. The projects will help address Maryland’s projected shortfall of 151,000 affordable/workforce rental housing units while creating an estimated 1,600 full time equivalent positions during construction stimulating $66 million in wages and salaries.

Not only would an infusion of funds keep hard-working people employed, it would allow us to deliver infrastructure improvements that will last beyond the immediate economic crisis.

We urge you to give us the tools to initiate work expeditiously, by waiving matching requirements and according us the flexibility to apply the funds in line with our needs as envisioned in the Consolidated Transportation Program for federally eligible highway and transit projects. For our part, I pledge these funds will be administered in a timely and accountable manner; if we cannot activate these “shovel ready” projects in the time allotted by statutory rules, we will return the money to the federal government. But make no mistake: I have no doubt about our ability to deliver these projects.

Thank you for your continued dedication to the State of Maryland and for your strong support during a time when everyone stands ready to pitch in for the greater good of the nation.

Sincerely,

Martin O’Malley
Governor