Stimulus Money Pits Cities Against States

In an effort to secure federal stimulus funding, cities and states are elbowing to see who can get transportation projects started the fastest.
December 19, 2008, 11am PST | Nate Berg
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"The nation's cities and counties are asking Obama transition officials to give them most of the infrastructure money from the multibillion-dollar economic stimulus package, setting off a dispute with the states over who can launch transportation projects the fastest."

"The disagreement over the stimulus money partly reflects the increased tension between state and local governments during a worsening recession."

"Many city and county leaders already are upset at state officials who are slashing aid to local governments to cover budget gaps. Their anxieties over being shortchanged were heightened Dec. 2 when 48 current and incoming governors met with President-elect Barack Obama to ask Obama to direct much of the stimulus money to states."

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Published on Thursday, December 18, 2008 in Stateline
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