“Republican control of the House and more GOP seats in the Senate will force a reevaluation of the administration's approach to stimulating the economy, and may call into question the future of these unspent funds,” -Michael Balsam
Seattle, WA (PRWEB) November 17, 2010
Onvia (Nasdaq: ONVI), the leader in gBusiness solutions and the creator of Recovery.org, has identified $120.4 billion in Recovery Act contracts that have yet to be awarded. Onvia’s government-spending expert, Michael Balsam, predicts that these unspent funds and unawarded government contracts will be under discussion in the new Congress, including the question of whether the remaining stimulus funds should be recalled to address Federal deficit concerns.
"Onvia is tracking 75,000 Recovery Act projects on Main Street, of which just 27,293 have been awarded,” said Michael Balsam, chief strategy officer at Onvia. “The rest are still working their way through the system, to the tune of $120 billion. These are funds that are mostly devoted to longer-term infrastructure projects and clean energy.”
Since the passage of the American Reinvestment and Recovery Act in February 2009, Onvia has tracked every stimulus dollar and government RFP at the federal, state and local government level, all the way from the U.S. Treasury to Main Street, where private sector jobs are created. Onvia’s post-election analysis addresses claims that the Recovery Act has been a failure. The company’s report shows that the Act has funded more than 800,000 private sector jobs through $75.9 billion in stimulus projects so far. Many of these jobs, however, were temporary in nature.
"Today we are at a point where nearly 50 percent of the GDP is government spending, a level not seen since World War II,” Balsam said. “It will take much more than gridlock to return that figure to a normal level. But, then again, we are in a period where the new normal is being defined. This election has laid the groundwork for 2011 to be a year of rigorous debate on the future role for government in our economic engine."
Onvia’s analysis is based on data through October 24, 2010, more than a year-and-a-half since the stimulus money began flowing into the states. The company's data shows that the most projects were awarded in September 2009 (3,128), followed by March 2010 (2,274).
“Republican control of the House and more GOP seats in the Senate will force a reevaluation of the administration's approach to stimulating the economy, and may call into question the future of these unspent funds,” Balsam said. “We expect to see state and local government agencies award the vast majority of these projects to private sector contractors within the next year. However, the emphasis will shift from 'shovel ready,' which was a myth, to 'job ready' - meaning long term private sector jobs rather than temporary or public sector. Of course, all of this depends on whether or not Congress recalls the unspent funds. ”
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For more than 12 years Onvia (NASDAQ: ONVI), the gBusiness Innovator, has been successfully delivering the research, analytics and tools companies rely on to succeed in gBusiness – the intersection of business and government and a $5.5 trillion market. Onvia tracks, analyzes and reports the spending of more than 89,000 federal, state and local government agencies, giving companies a single source for conducting open, intelligent and efficient business with government. Along with providing an exclusive suite of integrated business tools for a wide variety of industries, Onvia offers DemandStar, the automated system that streamlines agency procurement processes, and Recovery.org, a free website that tracks Recovery Act-funded projects. For information about Onvia visit http://www.onvia.com.
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