Pressure's on states deciding how to use stimulus

NEW YORK -- It may sound like a nice problem for states — figuring out how to spend the billions in infrastructure funding they'll receive as part of President Obama's economic stimulus plan.

But the task is more complicated, as state officials try to set priorities while managing competing pressures from communities, watchdog groups and federal regulators over how the money is allocated.

Under the plan Obama is likely to sign into law Tuesday, states will divide $27 billion to build and repair roads and bridges. That is less than half the $64 billion in projects states told the American Association of State Highway and Transportation Officials they had ready to go.

The volume of money directed toward state projects has fueled efforts to account for which projects receive the funding, which are rejected and why.

Massachusetts Gov. Deval Patrick, a Democrat, named a local real estate developer to oversee bidding for the stimulus money. Patrick also set up a website with information on every project that receives the money.

"I don't want to send a mistaken impression there are pet projects," he said.

States are moving quickly to develop ways for identifying projects and disbursing funding.

Ohio Gov. Ted Strickland, a Democrat, has retained a former U.S. diplomat as a temporary, unpaid "infrastructure czar." The Republican-controlled Senate, concerned that Strickland could bypass the Legislature, has drawn up a separate "spending blueprint."

Alabama Gov. Bob Riley, a Republican, has hired two former state finance officials to oversee the stimulus money.

New Hampshire Gov. John Lynch, a Democrat, tapped a former attorney general to manage the funds, while Wisconsin Democratic Gov. Jim Doyle established a state Office of Recovery and Reinvestment.

In Virginia, Democratic Gov. Tim Kaine is taking a grass-roots approach, setting up a website seeking input from residents, local governments and community groups.

Nearly 600 suggestions poured in on the first day.