LANSING – Some of the first uses of federal stimulus funds will be in transportation projects, and Gov. Jennifer Granholm said Thursday the 25,000 jobs those projects are expected to produce depend on quick action by planners and the Michigan Legislature.

Michigan is getting $853 million in transportation funds; $640 million for state roads and bridges and $213 million for local agencies, and half of that must be allocated within 120 days of official federal notification.

Transportation Director Kirk Steudle said an initial potential project scope totaling $4 billion has been whittled down to a list of about $732 million in state projects, or about “$100 million more than we can afford. The department looked at what’s ready to go. Our goal is to get as many projects out this summer as possible.”

He said the first priority are projects to repair and maintain systems, and with expansions being the second priority.

The new projects will be on top of about $1 billion in projects are already slated for this construction season.

The administration met Thursday with local planning groups in Lansing, Detroit and Flint. Similar meetings are planned Friday in Grand Rapids and Kalamazoo. Officials of the Tri-County Regional Planning Commission in Lansing said they will approve their project list on Wednesday.

Granholm said she will present a supplemental budget soon to deal with the transportation projects, and “we will try to push this through the Legislature in March.”

The governor said the Legislature needs to move quickly to appropriate the transportation funds because of the risk of losing them to other states if Michigan is not ready.

She said the project list is not political, but is driven by existing formulas, population and competitive grants.

“This economic recovery package means a great deal to Michigan,” Ms. Granholm said. “This package gives us an opportunity to at least slow the downward spiral of job loss.”

Another $135 million will come to Michigan in discretionary grants for public transit, intercity rail and airport projects. Officials said $50 million is available for capital investment grants, but that only a project in Grand Rapids currently is ready.

A spokesperson for Senate Majority Leader Mike Bishop (R-Rochester) agreed the timing is sensitive to move quickly, but also cautioned that the money be used effectively and efficiently. “We have every intent of working with the governor and the House to make surer no federal stimulus money is jeopardized,” Matt Marsden said.

But with billions of other dollars coming to the state, such as in the Medicaid program, which will free up general funds, he said a major concern is how to use that one-time money in a way that does not fill part of the state’s $1.6 billion deficit.

RECOVERY OFFICE DIRECTOR: Coordination of use of the stimulus money will be through the new Michigan Economic Recovery Office, which will be headed by Leslee Fritz, who has been communications director for the Budget Office.

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