Senator Judd Gregg says a federal stimulus package could mean $300 million for New Hampshire for infrastructure improvements.
Gregg said Monday the stimulus money should be spent on one-time infrastructure improvements — not ongoing programs.
"This will be one-time blips in the deficit that will come back down," he said.
He says Gov. John Lynch and the state's political leaders should decide the priorities for any money Congress allocates to New Hampshire. He said New Hampshire's share might be $300 million of a possible $800 billion stimulus package.
Gregg said his personal wish list would include expanding broadband in the North Country, rebuilding the Little Bay Bridge in Newington and improving Interstate 93. The University System of New Hampshire has a wish list, but Gregg said he's helped secure $300 million for the system over the past decade and doesn't believe its needs are as great as some others.
"I think there's certain infrastructure (improvements) which could be very positive. What we're seeing unfortunately is the world's largest feeding frenzy for earmarks going on right now," said Gregg. "We've just gone through an election where everyone's demonizing earmarks, yet every community in New Hampshire appears to be pulling out their wish list from swing sets to running tracks."
Gregg said the same thing is happening across the country in a "tsunami of earmarks." Gregg said the purpose of infrastructure improvements should be to produce jobs while making the state and nation more competitive.
Gregg said he'd have to see cost-benefit studies of such projects as building rail from Manchester to Massachusetts before deciding if they deserved funding. Some estimate the rail project's cost at $300 million, which Gregg said could consume all of New Hampshire's share of the stimulus money.
Gregg said he opposes helping states solve budget problems caused by overspending, but he supports helping fiscally responsible states whose problems stem from a decline in revenues. Gregg said he would not want the federal government to support spending that might lead to a broad-based tax in New Hampshire in two years when the federal help ended.
Gregg stressed the need for the big three automakers to put together plans to restructure their debt and reduce salaries to white and blue collar workers before asking Congress for more money. Gregg said the Senate was close to negotiating such a plan when the White House announced it would support short-term loans for the industry.
"They basically cut the legs out from under Senate negotiations," he said.
Gregg reiterated that $350 million spent mostly shoring up the financial industry did what it was intended to do — stop the collapse of the financial system.
"Banks would have gone under in a domino effect," said Gregg, the lead Republican negotiator for the Senate in developing the package.
Gregg said taxpayers are earning money on the preferred bank stock the government purchased.
Gregg said he was pleased that President-elect Barack Obama has reached out to Republicans to work on the tough domestic and international problems facing the nation.
Obama not only must deal with the recession, but also problems in the Middle East, especially escalating hostilities between Israel and Palestine, he said.
"It's not good, but you can't say Israel shouldn't act," said Gregg. "Hamas is a terrorist group and I have no sympathy for them."
Domestic issues Gregg is eyeing include fixing health care and reducing the need for foreign oil by replacing it with domestic production, conservation and renewable energy.
Gregg said the current price of oil makes some domestic production less attractive for oil companies to pursue. America should ease regulatory hurdles so exploration and production will be feasible when prices rise again, he said.
