Stimulus bonds fell far short of goal

The Philadelphia Inquirer reports:

The 2009 federal Recovery Act included a $15 billion bond program that allowed private companies to borrow money for certain projects at a tax-free interest rate.

The hope was to jump-start economic development in areas picked by county governments and help pull the country out of the worst economic downturn since the 1930s.

Expiring on Friday, the program with an unwieldy name - Recovery Zone Facility Bonds - fell far short of the expectations set by Congress and provides an example of how difficult it is to create effective economic stimulus.

In Pennsylvania, companies could have borrowed, in aggregate, up to $231 million. Only $61.5 million was used, according to the state Department of Community and Economic Development.

Imagine that.