City of Oshkosh takes a closer look at spending of stimulus funds

OSHKOSH - Stimulus. It's a word and law that can inspire uncertainty. Where is the money is going? And will it do the job?

A community meeting in Oshkosh looked to offer some answers.

“The classic solution that we've been doing since the 1930s is for the government to adopt some temporary programs that will stimulate spending,” said UW-Oshkosh economics professor Kevin McGee.

By individuals, households, local and state government.

Economist Kevin McGee said all are part of the near $800 billion Federal Stimulus Package.

“I think we're just delaying some pain, which the taxpayers are going to see in a lot of different ways,” said Oshkosh Chamber of Commerce president John Casper.

Casper said whether it's cuts to services or increased taxes, eventually Wisconsin will pay for the $13 billion it saw in stimulus funds.

$214 million of that went to Winnebago County as tax relief, assistance to individuals and families, small business support, education, transportation and other public needs.

“It goes further than just government. There were monies for small business loans, monies that helped stimulate local car sales as well as energy efficiency, cause the cash for clunkers program was extended,” said Winnebago County Executive Mark Harris.

Under the program 16 dealerships received checks, spurring more than $4.2 million in sales. That's 1000 new cars in Winnebago County.

The city of Oshkosh received about $5.3 million, and used the money for energy efficiency projects, the purchase of 4 hybrid diesel-electric buses, public health initiatives and local road construction.

“Projects that would otherwise have not been done for several years in some cases if at all, street projects that were sorely needed here in Oshkosh we were able to move up several years,” said Oshkosh City Manager Mark Rohloff.

Local leaders say stimulus money created short term jobs, and helped avoid layoffs or drastic cuts to service.

But some say it's a band-aid, that doesn't cure the wound. Schools, cities and counties will soon cope with a fall in resources.

“Our continuing operations here are partly funded by stimulus money, it does create the question what happens when those stimulus monies are withdrawn,” said Harris.

Local leaders say they know what they will receive from the federal government, but some of the money awarded to the city and county has yet to arrive.