Are we there yet? Has the stimulus package of federal aid prodded Hawaiçi into the post-recession safe zone?

Not yet. In fact, other states have spent more of their federal boon than has Hawaiçi in the early months of the program.
But that’s reason for heightened vigilance on how the program plays out, not panic about how it may already have failed.
Recovery.gov is the Web site set up by the Obama administration to track spending. According to state reports filed there, Hawaiçi has spent just over 33 percent of stimulus funds allocated to the state under the American Recovery and Reinvestment Act of 2009.
That places the Islands just below the middle of the pack among states for speed of spending — injecting stimulus money into the local economy.
U.S. Sen. Daniel K. Inouye seemed unperturbed by that during his Monday hearing before state and county officials who are at the helm for ARRA spending locally. His assessment: The stimulus money in this state should reach peak effectiveness, in terms of job creation or preservation, by the middle of 2010. And that, he said, is OK.
And he’s right, provided that the federal government works to reduce the regulatory hitches that make compliance difficult for states and counties, and that local governments collaborate effectively, minimizing the bureaucratic tie-ups that historically impede progress.
Gov. Linda Lingle spoke at the hearing in defense of her administration’s plans, especially concerning construction financed both by the stimulus and state funds Lingle allotted for state infrastructure improvements. It includes some quick-fix projects — road repaving, painting such — but places more focus on more long-term jobs that would sustain employment for a longer period.
It’s a reasonable approach, especially given that last week’s updated tax-revenue projections showed the budget deficit deepening further in 2010. Putting a priority on creating longer-lasting jobs may help stabilize employment until economic recovery picks up steam in the following fiscal year.
But there’s much to do to ensure that Hawaiçi is positioned to capitalize on the one-time infusion of federal funds.
There have been complaints of slow-downs on Uncle Sam’s end. Lingle asserted that only 46 percent of Isle funds have been delivered at this point. Federal formats, guidelines and instructions for the required reporting systems were delayed in reaching states, she said, and the state has been frustrated in its role as funds tracker by the failure of the federal government to keep them informed about some of the allotments.
Congressional delegates should ride herd on these glitches. On the home front, legislation has eased the procurement process to make spending speedier, but state-county consultation must continue to head off permitting redundancies and delays.
The stimulus has poured many billions of public money into projects and must be spent responsibly. Government must find a sensible balance between its use as an immediate infusion and as a means of investment to provide the underpinnings for a more robust economy, once fortunes start to climb again.