Focus on Funding: "Stimulus Funding" - Is this an opportunity for your infrastructure improvements?

by Brad Baird, P.E., President

Economic stimulus funding has been the top news story of the day for months. So the question arises: will this funding actually create opportunities for you to fund water, wastewater, roadway, and other improvements? The short answer is yes, it will. This article outlines where your opportunities might lie and what you need to do to proceed, should you choose to do so.

While the implications of final composition of stimulus funding are not yet completely clear, a few things are apparent:

• There will be more funding opportunities now than before (for a while).
• Most funding will be funneled through existing funding programs.
• There might be more grant opportunities, i.e., new grants and more grants from existing grant sources.
• Funding agencies are aggressively and competitively pursuing funding projects. They want to make sure they use their influx of funding so that the money is not sent elsewhere to be used by others.
• It will take a few years to use up all of the stimulus funds.

Considerable attention has focused on “shovel-ready” projects that can go out to bid in 60 to 120 days. However, not all projects are shovel-ready, and if they all were, then there probably would not be enough contractors to do them all, and construction prices would increase due to heightened demand and less contractor availability. Obviously, it will take some time for the increase in funding due to the stimulus package to work through all of the regulatory pathways so that it can be used by those who need it. So even if your project is not shovel-ready, you may still benefit from good opportunities to secure funding, most likely over the next few years.
If you are considering any kind of infrastructure project, now is probably the best opportunity that you may have in quite a while to secure funding. What do you need to do to proceed?

1. Get Your Project(s) on Lists – Many project lists have already been completed by agencies and organizations, and we have assisted several cities in securing spots on these lists. Even though most lists are already done, you can still submit your project(s) to some of them. Making your needs known is the first step.
2. Update Your Project Cost Estimate – If you have already completed a study with a cost estimate, it would be important to update costs so you know what the improvements will cost now, as construction costs have significantly inflated over the past five years.
3. Complete a Study – Most agencies require a study to document what you plan to do, the estimated project cost, etc. If you have not already completed a study for the project, the sooner you get underway, the better. There are also ways to complete abbreviated studies to move more quickly toward getting funding underway.
4. Complete Up-Front Work – The closer you are to being ready to proceed with construction, the better your chances of securing funding.  There are many up-front tasks that can position you to be ready, such as securing easements, land, preliminary design, environmental clearances, etc.
5. Talk to Funding Agencies Now – Let funding agencies know what your project needs are and their estimated costs. Talking directly to the agencies gives them a sense of urgency beyond placing your project on a list with everyone else.

AP specializes in assisting rural communities with securing funding for infrastructure improvements projects. In our close work with funding and regulatory agencies, we can be your advocate in moving projects forward. If you would like to consider proceeding with improvements, we can outline a course of action and get your project underway at a time when funding opportunities appear to be better than usual. Please feel free to give me a call at         (541) 963-8309 or email me at bbaird@andersonperry.com if you have questions.