HARRISBURG -- Gov. Ed Rendell has laid down two basic rules for spending $17.8 billion in federal stimulus money over the next two years -- spend it quickly and be "accountable and transparent" about where all the money is going.

He tapped Department of General Services Secretary James Creedon yesterday to head up the spending effort, which will have about $1 billion more than initially expected. Mr. Creedon will make sure that state agencies act as quickly as possible to use $1.4 billion to fix ailing roads, bridges and transit systems; get sewer and water line repair projects underway; get weatherization money to homeowners to make their houses more energy efficient; and use the rest of the money as federal guidelines direct.

In all, the state expects $9.8 million to come to the state for a variety of stimulus projects. The other $8 billion will go directly to residents in the form of income tax breaks, college tuition credits and other direct assistance.

President Barack Obama, who pushed Congress to enact the stimulus program, wants money put to use quickly to create jobs, put laid off people back to work, make transportation systems safer, modernize schools, improve water and sewer lines and undertake other necessary infrastructure improvements.

Mr. Rendell said that within two weeks, he will name someone to make sure the federal money is spent properly and that the spending is accountable to the public. He has created a new Web site, www.recovery.pa.gov, where the public will be able to see the projects getting the stimulus money. He expects to put quarterly reports on the Web site on how much money has been spent on each project and how far along each project is.

He is also creating a new panel to help Mr. Creedon and the accountability director. It will have six members, one from each of the four General Assembly caucuses and two members of Congress.

He also said that by Monday, the Metropolitan Planning Organizations and Rural Planning Organizations will have chosen the road and bridge projects that will be done in each part of the state. In the Pittsburgh area, that group is called the Southwestern Pennsylvania Commission, which has decided on the projects in discussions with state transportation officials.

He said that for the current fiscal year, 2008-09, which ends June 30, the federal funds will help the state avoid more drastic budget-balancing moves. He expects to get $1.1 billion in stimulus funds for the current fiscal year, which will pay for Medicaid costs for elderly and lower-income people.

But he said the state still needs to trim spending by $1.2 billion in order to erase a projected $2.3 billion deficit this year, and make additional cuts to balance the proposed $29 billion budget for fiscal 2009-10.

It's possible that this year's deficit could exceed $2.3 billion, which could necessitate "rolling furloughs" of unionized state workers, or perhaps layoffs. He is still meeting with state unions about those options.