PIERRE — South Dakota and the Pierre area have benefited from millions of dollars in federal stimulus funding. But many people increasingly argue that the controversial stimulus bill is a gigantic dud.

The $787 billion dollar American Recovery and Reinvestment Act of 2009, passed in February, was intended to stimulate the economy through a combination of tax cuts, spending and assistance to cash-strapped state governments. But eight months after the stimulus bill passed, South Dakota and other states have still lost thousands of jobs.

“The stimulus bill is not delivering the benefits promised — including keeping people from losing their jobs,” said Republican Sen. John Thune, a critic of the stimulus bill from the beginning. “Since the stimulus bill was signed into law there have been 5,800 South Dakotans who have lost their jobs. It’s a far cry from the 10,000 jobs that were promised would be created in South Dakota.”

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But proponents of the stimulus bill argue it prevented the economy from getting even worse and saved thousands of additional jobs from being eliminated.

“The American Recovery and Reinvestment Act, in my opinion, has worked for the state. It’s been very important for keeping teachers in the classrooms and a whole host of other (things),” said Democratic Rep. Stephanie Herseth Sandlin, who voted for the bill. “The list goes on and on and on about how targeted investments through the stimulus provided assistance, and that’s all in addition to what else was in the bill in terms of tax breaks for families and small businesses.”

Pierre has seen a significant amount of stimulus money, from projects such as a new terminal for River Cities Public Transit to the prevention of significant cuts in state programs.

“Right now we’ve secured $3.5 million going into the Pierre area,” said Pierre Mayor Laurie Gill. “All these projects will involve construction, with a number of different people involved. There will be people in this community working on these projects. Even if they’re not from Pierre, they’re living here and buying gas here and spending money here.”

The city of Pierre will be using stimulus money to work on constructing a new airport terminal, doing maintenance and construction work on city streets and extending the Hilger’s Gulch bike path to the truck bypass.

$750 million in stimulus money has been spent in South Dakota so far, of which $190 million is loans. The state government itself has received $233 million, including $75 million in highway construction, $50 million to help the state pay for Medicaid and more than $80 million in fiscal stabilization money to cover South Dakota’s deficit for the current fiscal year.

The recovery act also included nationwide programs such as the first-time homebuyer tax credit, the Cash for Clunkers program and a payroll tax cut.

Before the passage of the recovery act, the Legislature was debating significant budget cuts including dozens of layoffs and the elimination of popular programs and departments like the Birth to 3 Connections program and the South Dakota Arts Council.

But critics claim the cost in added debt far outweighs any benefits.

“The whole argument was that it would be temporary, targeted and timely. Instead we’ve seen stimulus funds that have been doled out slowly and inefficiently,” Thune said. “Borrowing a trillion dollars from our children and grandchildren for no discernible impact on job creation was not a good thing to do.”

Thune said the stimulus bill has had some good effects, but not enough for its cost, which Thune said will be around $1 trillion when interest on the borrowed money is paid.

“I’d be the first one to say that when you spend a trillion dollars, there ought to be some positive and some good that comes out of it,” he said.

Herseth Sandlin disputed claims the stimulus has been ineffective, arguing it prevented a much bigger recession and that the majority of the money has not yet been spent.

“It remains a work in progress, and I think no one can deny the positive impacts it’s already made in our state,” Herseth Sandlin said. “Jobs is only one measure, and I think that it’s important that we ask the question of what would have happened had we not passed this recovery act.”

That’s not enough for Thune, who sees only high unemployment compounded with high debt.

“Washington, in my view, needs to get our fiscal house in order,” he said. “I think the stimulus bill represents a classic example of how Washington overspending can take a bad situation and make it worse.”