Stimulus plans need more time and money

By Al Gordon
Chief Executive Officer

Just four months after the Obama Administration’s stimulus package got the green light, some economists are already pressing the White House for more.

According to a recent article in the Wall Street Journal, some favor a second round of stimulus spending to avert a prolonged job and wage slump. Meanwhile, the White House wants to give the $787 billion stimulus package passed in February time to work -- only 10% of the spending is out the door so far.

We need both.

The Obama Administration has combined stimulus funding with substance, allocating money for issues identified as key issues such as energy, technology and health. This provides more than just an economic boost. It’s a crucial preliminary step in establishing priorities for the Administration.

The timing isn’t a surprise, nor is it unreasonable. It’s not unusual to take several months for funding to make its way to various targeted programs in an environment where accountability and transparency are paramount. Also, programs require plans, which take time to develop and approve.

That said, approving a second round of stimulus funding now could be critical to help states shore up dismal budgets and avoid layoffs. Some may recall critics pointing to lack of government spending to create jobs and therefore prevent further economic peril during the Great Depression. Overall economic health depends on robust local government markets. If states don’t get adequate help now, layoffs could send the economy into a deeper nosedive.

Alfred Gordon is the chief executive officer of NSI. Prior to establishing NSI in 1995, Mr. Gordon worked as a senior member of former New York State Governor Mario Cuomo’s staff, building upon his extensive background in government and politics. In this capacity, Mr. Gordon oversaw areas, such as legislative relations, intergovernmental relations, constituency affairs and regional services.