California officials lining up for a piece of any stimulus bill

WASHINGTON — California is broke and cannot afford thousands of public works projects, but Uncle Sam could be riding to the rescue.

Even before President-elect Barack Obama takes office Jan. 20, his transition team is negotiating a huge stimulus package now estimated to be worth some $850 billion. Cash-strapped states and cities are salivating at the prospect of the largest public works program since the New Deal.

In California alone, officials have identified $28 billion worth of ready-to-go projects. They range from upgrading the access to the Golden Gate Bridge to realigning Interstate 5 north of Redding -- and the wish lists just keep growing.

Everyone wants a piece of the action. Mayors in cities from Sacramento to Fresno have big wish lists. Environmentalists think national parks like Yosemite need help. And San Joaquin Valley farmers think the stimulus bill could help fund canal improvements.

"I believe the funds should go to the places that have the toughest times right now," said Democratic Sen. Barbara Boxer, who chairs the Senate Environment and Public Works Committee.

For Boxer and her Golden State colleagues, of course, that means California. They note that California is the nation's most populous state, and that many of the state's highways are in disrepair and among the most congested in the nation. Boxer said that California should receive from 10 percent to 12 percent of any appropriation, based on its population.

The stimulus package is about more than just highways, and the current negotiating is about more than just dollar amounts.

States, for instance, usually must provide a 20 percent match to receive federal money for transportation projects. Now, though, state officials and others are trying to get the requirement waived for a stimulus bill. And with more than 40 states projecting budget deficits in the next two years, that request is finding sympathy on Capitol Hill.

"Many states simply don't have the ability to make the 20 percent match in the short term," John Porcari, Maryland's secretary of transportation, told the House Transportation Committee at a recent hearing.

The committee's chairman, Democratic Rep. Jim Oberstar of Minnesota, said that's "why it's important to have 100 percent federal funding in a rescue or recovery proposal."

While the idea is getting broad support among Democrats, some Republican leaders are raising questions. House Minority Leader John Boehner of Ohio said he has "grave reservations about taking $1 trillion from struggling taxpayers and spending it on government programs." He suggested tax cuts as a better alternative to kick-start the economy.

Other opponents, led by the National Taxpayers Union, argue that Congress should not bail out states because they increased their spending by 124 percent over the last decade, bringing about their own troubles.

California Republican Gov. Arnold Schwarzenegger said the state needs of more than $500 billion for infrastructure projects over the next 20 years. But he said the state could get going on $28 billion worth of projects within the first 120 days of Obama's administration.