While Muncie and Ball State University are eager to use the $2.4 million of state stimulus money, some economists are doubtful of the impact the stimulus will have on Delaware County.
Director of the Center for Business and Economic Research Michael Hicks said he thinks the stimulus has affected Indiana very modestly, and the value of the dollar is already going down.
He said stimulus money is used mainly to replace shortfalls in state funding.
"It's not so much that [spending stimulus money] is out of favor, but it's the practical matter of spending it," he said.
Phillip Sachtleben, vice president of Government Relations, said Ball State's operating budget, with stimulus funding added, is $4.8 million for the 2009-2010 school year. Five million dollars will be split between the next two school years for restoration and recovery projects.
Sachtleben said the university asked in June for $46.65 million for phase two of the geothermal project, but the money has not been awarded yet.
Other state universities are also using the stimulus money to offset expenses. According to the 2009 Indiana General Assembly Campaign, Indiana University will use 50 percent of stimulus funds for operating expenses and 50 percent for campus R&R projects. Purdue University, according to a press release, will use stimulus money to rebate $250 of the $500 student success fee for Indiana undergraduate students next school year.
According to a press release from www.in.gov, the state plans to use almost $132 million in federal stimulus funding for energy conservation efforts which is 11 times the normal amount. This would result in household energy savings of 30 percent.
The city of Muncie is using $655,000 of the state's stimulus money for projects under a Department of Energy grant, which is in line with these energy saving efforts.
Deputy Mayor Dick Shirey said this money will go toward updating traffic signals, putting up reflective film on City Hall windows and creating an energy conservation office.
He said $100,000 will be used to create the energy conservation office, which will act as a library for devices and literature to help businesses and community members become more energy efficient.
Another $1.2 million will go toward resurfacing parts of McGalliard Road and Tillotson Avenue, he said.
"Both projects are shovel-ready," he said. "It's a matter of getting contracts."
Marta Moods, executive director of Delaware-Muncie Metropolitan Plan Commission, said the Muncie Metropolitan Plan Commission will utilize $3 million for paving projects in the Muncie urbanized area.
With state stimulus money, the Muncie Indiana Transit System has ordered five hybrid buses.
Assistant General Manager Mary Gaston said 60 percent of the funding for these buses, which cost $529,000 each, will come from stimulus funds, and she expects they will be available for use in late winter or early spring.
"Part of why it could be implemented so quickly is that we used the same company that we ordered all our new buses from," she said. "These projects can take two or three years from placing bids to pricing, but we had a pretty quick turnaround."
She said Muncie has poor air quality, and using hybrid buses will lower the city's carbon footprint. She said as soon as MITS gets the buses, it will pay for them and draw money from the federal government to offset the costs.
Executive Director of the Muncie Airport Michael Lynn said the airport received $400,000 for replacement of runway lights, guidance signs and electrical cables. This is one of the few projects that has been paid for and completed.
"I think what's different for us is that airports receive their funding through the Aviation Administration, which is the same place we get federal grant funding from ordinarily," Lynn said.
He said the project was completed in 60 days and the only thing left to do is finish paperwork.
Hicks said there are three types of lags in the process of receiving stimulus money: recognition of the problem, legislation generated by the government and implementation of the money.
"It'll be two or three years before it hits the economy," he said. "By then, we could be out of the recession."
Sachtleben said the federal government cut all state-funded university budgets and then restored them with stimulus money.
Federal dollars replaced most of the loss in state revenue, he said.
What's next:
Jim Lowe, director of engineering and operations, said Ball State put in two grant requests, which are funded with stimulus money, to the United States Department of Energy.
One grant is for $40 million and the other is $5 million. He said they will expect a response in mid- to late December
Lowe said the university hopes to get enough grant money to fund phase two of the geothermal project, but will still have enough money to complete the project without the grant.
With the project halfway complete, Lowe said, they will use the capital savings from the geothermal project to fund phase two.
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