An analysis of home weatherization activity resulting from the federal stimulus bill will create $48.6 million in economic activity in Iowa.

Iowa will receive  $81 million for retrofitting of 7,205 homes from 2009 through 2012 from the American Recovery and Reinvestment Act, according to a report released by the Iowa Fiscal Partnership.

Iowa State University economist Dave Swenson  analyzed the impact of the funding.

“There have been delays and that is disappointing, but this kind of spending clearly stimulates the state economist,” Swenson said.

Every federal dollar of economic stimulus invested in weatherization yields about $1.47 in total output for the state, Swenson said. Out of that dollar, 61 cents is returned to Iowa workers in wages and salaries and incomes of small business owners, he said.

The study indicated the spending will support 612 jobs in both 2010 and 2011, and smaller numbers in 2009 (118) and 2012 (145) either directly or indirectly.

The findings were in a report released by the Iowa Fiscal Partnership, a budget and tax policy  initiative of the Iowa City-based Iowa Policy Project and the Des Moines-based Child & Family Policy Center in Des Moines.

Iowa Policy Project Researcher Molly Fleming said the weatherization spending ripples through the economy, as low-income families that have energy bills lowered through weatherization projects spend can spend that money on other goods and services in their communities.