Stimulus Spending Set to Create More Washington State Jobs

Economists keep warning that as federal stimulus spending begins to run out in coming months, the lower spending could put a drag on the U.S. economy.

But in Washington State, at least, we have spent a small fraction of the $4.5 billion in Recovery Act funds that has been allocated to us. That means you can expect stimulus spending to continue creating much-needed jobs for some time.

That’s according to a report by Onvia, a Seattle-based company that has been tracking spending and job creation based on the American Recovery and Re-investment Act.

Onvia estimates that Recovery Act funds have already helped to create 17,530 jobs in Washington in the 18 months since the money began flowing. Those funds will create an additional 10,000 jobs in the last five months of this year.

“Washington state did a better job than most other states in attracting federal money,” says Michael Balsam, chief strategy officer for Onvia. “But the state has not moved the money through the pipeline as fast as others.”

The good news is that this means stimulus money will keep adding new jobs well into 2011.

Stimulus funded projects are ongoing across the state. They include a large number of road projects, as anyone who has done any road travelling in Washington this summer can attest to. But the stimulus money is also going into a range of other longer term projects. They include:

Energy: Everything from projects to train workers in energy efficiency assessments for residential homes to creating an infrastructure to provide recharging for electric cars along I-5.

Technology: Includes programs to improving broadband coverage in rural areas and funding for health care information systems at hospitals.

Water: Projects include a new wastewater treatment system for the Lummi Indian Nation near Bellingham.

Among the beneficiaries this year from federal largesse are Seattle-based Mason Construction Company and Vancouver-based Kiewit Pacific Company, who have been awarded a total of over $120 million in contracts. Others that have won contracts include TMG Services, Inc., Tacoma, General Construction Company, Poulsbo and Tri-State Construction Inc., Bellevue.

While federal spending may continue to create jobs, a budget shortfall by the state could result in cutbacks in state spending that could counteract the positive impact of federal spending.