Posted at: 02/14/2009 2:44 PM
By: Nicole Muehlhausen, Web Producer
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The stimulus and MN: Windfall gift or financial shackle?
 

Interactives:
 Breakdown of the economic stimulus
 View how the stimulus will impact jobs statewide
 View how the stimulus will impact jobs by your Congressional district

Related stories:
 House passes $787B economic stimulus bill
 KLOBUCHAR: Stimulus has more than $4B for Minn.
 $2B in fed dough for state, but with strings
 Pawlenty expects deficit to swell to $6B or $7B
 FEDS: Midwest recession to continue in 2009


It’s almost a done deal—billions of dollars are about to head to Minnesota as part of the federal stimulus plan.

But some in Minnesota want to send the money back, wondering if it’s a windfall gift or a financial shackle that will hamstring the state for years to come.

Either way, if the state takes the money, several projects are likely to get the green light. A handful of west Metro lawmakers announced Friday the biggest blueprint project of them all: The $134 million completion of the Interstate 494-Highway 169 interchange.

In all, $502 million would go to Minnesota infrastructure, $71 million to clean water projects, and $1 billion to schools and education programs. But all this money comes with strings attached.

"We know it's not going to be a blank check," said Sen. David Hann, R-Eden Prairie.

Hann was not invited to the west metro news conference, where no Republicans showed up.

"It has been more partisan than I would have liked or have expected," Sen. Terri Bonoff, DFL-Minnetonka, countered.

Hann warns the state should consider not taking some of the stimulus money because it could force the state to expand health and welfare programs, just as it's facing a potential $7 billion deficit.

"That federal money is a one-shot deal, and once that goes away, we're going to be left with the increased program commitments that are going to require revenue to sustain them going forward," Hann explained.

If the state takes the money, the Minnesota Department of Transportation said it could be ready to start awarding contracts to winning bidders just one month from today.

About an hour ago, the state's stimulus point person told 5 EYEWITNESS NEWS the state will ‘take advantage of all federal dollars that are in the state's best interest.’

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