Reed: stimulus is about job creation

PROVIDENCE, R.I. (WPRI) - Rhode Island stands to gain as much as $1.5 billion from Washington's economic stimulus package. Now, according to U.S. Senator Jack Reed, the challenge will be making sure the funds are used quickly and wisely.

"We want to put people back to work. But, I think we also want to be able to look back and see projects that were worth while and that made us more economically productive," Reed said during a news conference, which was held at RIPTA's new maintenance facility on Elmwood Ave. in Providence.

Reed said Rhode Island's Medicaid system would receive $470 million over the next two years, while the state would get $137 million to fund highway work; $29 million in transit funding to help economically faltering agencies like RIPTA; and $93 million for school districts to prevent further layoffs or possibly bring laid off teachers back.

Reed, Rhode Island's senior senator, said the cash infusion into the economy is critical.

"It took many years for this crisis to build and fixing the economy will take time," Reed said.

Congress approved the $787 billion economic stimulus plan last week. President Obama was signing it into law Tuesday.

According to the White House, the bill is expected to put 12,000 people back to work. However, with an unemployment rate of 10 percent, about 56,000 Rhode Islanders are unemployed.

The state is also facing a $357 million budget deficit for this fiscal year, and a similar shortfall for the coming year.

The General Assembly is on a short break. However when lawmakers return, there is sure to be fierce debate over who controls Rhode Island's share of the money.