Stimulus Money Unspent as Economy Struggles

(CBS)  By the end of next month, the federal government will have awarded nearly all of its stimulus funds - $862 billion -to local governments around the country.

But as CBS News Congressional Correspondent Nancy Cordes reports, it's in those states and cities that the money is running into roadblocks.

Rep. James Clyburn, D-S.C. and a supporter of the stimulus, is frustrated with the slow pace of stimulus spending in his home state of South Carolina.

"There is a big difference in what we do here in Washington and how it gets where the rubber meets the road out in these communities," Clyburn said.

Take the cash-strapped District of Columbia - which has spent less than half of the roughly $1 billion stimulus it received. The city got $14 million to repair rundown Pennsylvania Avenue. But only $4 million has gone out the door.

Natwar Gandhi, Washington D.C.'s chief financial officer said, "When you invest in long term projects you want to do the proper planning - that it's simply not spent for the sake of spending."

Some cities are still trying to figure out what to do with the money. Others are struggling to navigate the bidding and permit process.

That's why, 18 months after the president signed the stimulus bill into law, the U.S. Department of Energy has pledged $30.2 billion worth of stimulus grants and contracts - but only paid out $6.2 billion.

House Minority Whip Eric Cantor, R-Va., said the stimulus bill "has been an utter failure even by the administration's own standards."

The Obama administration says stimulus funds for energy and infrastructure projects were always expected to go out slower than the billions in unemployment benefits and tax cuts.

"It's just as if you were to hire a contractor to work on your home. You don't give them that final check until they're done," said White House economic adviser Jared Bernstein. "I don't think that the American taxpayer would want it any other way."

But polls show that American taxpayers aren't sure the stimulus is working. Democratic arguments that the economy would be much worse without it are a hard sell during a campaign when unemployment is at 9.5 percent.

[WriterOfMD]

What stimulus money? It must be going into the pockets of my company's executives, because it sure isn't showing up at our location!

[tsigili]

Better not spent, than wasted, like the other billions.

[aftinc]

The problem with how this was done, the money went to governments, the program has failed and we and our children are left with the invoice.

Like I and many others said back then, all that was needed were revisions to laws on how companies conduct business. Their tax and incentives need to be directed towards doing business in the U.S. This should be across the board for all sectors, mfg, service, banking, etc...

The current laws provide incentives to move jobs and production off shore.

This may sound to easy to be true but don't ever think we get the truth from DC. In their view we are here to support their agenda not the other way around.

Vote them all out and buy American only. Just doing this will make huge differences in the next 18 - 24 moonths. I'm not for not buying other products but when it's done for the sake of some investor or to meet a politiacns agenda for something other than doing what's right for us it's not good and as we all can see it's not working for us. Most of the larger companies I deal with have an office set-up here, the product is made in China or other places. These companies in China and elseware are poluting the planet while breaking every child working law ever written in the US. They are working from dirt floors, dirty unhealthy places, germ infested you name it. But they'll never tell us about this. They show us big new buildings in China, they'll say whatever needs to be said to allow them to continue with their justification. They'll say have hope, trust me, don't go backwards go forwards. The truth is around us most are not better off today then say 10 years ago. They all point the finger at the other guy but it's not the other guy, it's them. They are the monkey in the room.

[DocD--2008]

Hope your ready to spend over $100.00 for that $15.00 toaster.. Oh and your $600.00 computer is now $6,000.00

[longtree-2009]

obama and democrats have given billions in bailout taxpayer monies without ever establishing tight federal oversight. obama just gave another 26 billion bailout to states to keep teachers, school counselors, police and firemen employed which are all special interest groups with their own lobbyists, unions, PACs. obama's rhetoric got him elected but so far he is all rhetoric and nothing much else. if you are still wealthy, still employed and not in danger of losing your job, not underwater on your mortgage, have not been foreclosed on, still have your retirement monies intact, doing extremely well given this economy, then good for you.

[jimbom121]

Teachers, Police & Fire are now special interests?

[guyfrompa46]

I don;t know about you but I'm waiting for the next cash for Clunkers.

[rightbehind]

The economy is well on the mend and there are stimulus funds left? Outstanding!

[guyfrompa46]

You are joking I hope.

[cbs4111]

rightbehind

Grasp your head firmly. Pull it out (of the sand or wherever it is). Now look around.

[spaceatoms]

Tomorrow is a new day and more fascist bailouts and compensation packages for the corporations, more socialist welfare programs for the poor, more right wing politics for Wall Street without taxes and more mandatory insurance policies to make the middle class less free. In ten years of war and low interest rates, it still hasn't fixed anything, wake me when it is over!

[nuttyworld]

The shovel ready jobs are for the load of stuff that has been coming out of DC. If only we could get paid for that we would all be wealthy.

[nuttyworld]

"Trickle up poverty" as the intellect Michael Savage has said many, many times.

[curse914]

Savage is far from an intellect, so I hope you are being sarcastic. Savage tried to make his money selling herbs to hippies and failed. He later saw how much bank Rush Limbaugh was making selling Hate and jumped on the Red Hot Hate, bandwagon.

Once a Snake Oil Salesman, always a snake oil salesman.

[whozzzzure]

The cause of this whole mess is this: NAFTA; greed in the banking and mortgage industry; corporate financial executives who are paid as geniuses but are fools; wars everywhere -- a war on terror cannot be won. Historians will tell you democracies must live with terror, even home grown kinds; and a growing top and bottom of our society with no one much left in the middle to pay the bills. There you have it. Economics 101.