Utah cities speculate on stimulus funds

With the first wave of federal stimulus money trickling into Utah, city leaders are scrambling — and, in some cases, scrambled.

"We're still trying to see through the fog, if you will," said Sandy spokeswoman Trina Duerkson. "It's still very unclear what's going to happen. We're keeping close tabs, that's for sure."

From Salt Lake to Salem, officials are keeping an eye on the news wire and their lobbyists on speed-dial. They're filling out applications for grants that do not yet exist and preparing to move on projects, even when they're unsure how much of the $787 billion will make it into city coffers.

"There's a lot of speculation going on," said Chuck Tarver, West Jordan's block grant coordinator. "Almost every day now they're coming out with different regulations and requirements."

Some of the confusion is unwarranted, said Len Simon, Salt Lake City's lobbyist in Washington, D.C. Funds will be distributed mostly through existing federal, state and local programs.

"If a city is already getting (Community Development Block Grant) money, they're just going to be getting more CDBG money," Simon said. "No one is going to be asked to reinvent the wheel. In most cases, it's going to be reconnecting with existing funding."

Other money will be made directly available to cities through discretionary funds and competitive grants. In some cases, grant applications are due as early as next month, Simon said.

"We're going to have to apply very, very quickly on a lot of these things," he said.

But when the checks come, cities know how they must spend their share of the cash: fast.

State and local leaders must obligate the funds for projects that will help jump-start the foundering economy almost as quickly as the money arrives. In the case of funds from the Federal Highway Administration, for example, the government will take back half the amount of any money not attached to a project within 180 days.

In Salt Lake City, representatives from key departments and Mayor Ralph Becker's office meet regularly to pinpoint projects that will create the most jobs quickly, a city spokeswoman said.

"The mayor has made it crystal clear that every penny has to be used for its highest purpose," Helen Langan said.