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American Recovery & Reinvestment Act of 2009 Maine Association of Nonprofits Webinar June 19, 2009 Purpose of the ARRA • The purpose of the Recovery Act is to create and save jobs, jumpstart our economy, and build the foundation for long-term economic growth. The Act includes measures to modernize the nation's infrastructure, enhance America's energy independence, expand educational opportunities, increase access to health care, provide tax relief, and protect those in greatest need. (www.recovery.gov) • Obama Administration Recovery Act goal is to create or save 3.5 million jobs over the next 2 years • Jobs Now ARRA Overview • Total cost of the act is $787 billion – of which $280 billion will be administered through State and Local governments. • According to GAO, ARRA funding will flow into the states “affecting about 50 state formula and discretionary grants as well as about 15 entitlement and other countercyclical programs.” • The three of the largest streams of funds flowing to states and localities are (1) the temporary increase in FMAP funding which will provide states with approximately $87 billion in assistance; (2) the State Fiscal Stabilization Fund, which will provide nearly $54 billion to help state and local governments avert budget cuts, primarily in education; and (3) highway infrastructure investment funds of approximately $27 billion. State of Maine Implementation • Governor Baldacci signed Executive Order 25 FY08/09 on February 17, 2009 which: – Names Commissioner of DAFS State Coordinator for all stimulus funds – Requires all departments, agencies and instrumentalities to provide information as requested in an accurate and timely manner – ensures Legislative oversight and participation and the highest degree of accountability possible, by requiring that each dollar of stimulus funding received by State government be allotted by financial order. Also each agency will be required to provide notice and briefing to its legislative oversight committee or committees regarding the receipt and uses of recovery monies reflected in each individual financial order, prior to submitting that financial order for the review and approval of the State Budget Officer and the Governor. • • Late March 2009 position filled at DAFS to provide oversight and implementation of ARRA funding in Maine. www.maine.gov/recovery established to provide information concerning Recovery Act activities in Maine. Complete Transparency Draft Public Query Page Preventing Abuse • The Governor is committed to ensuring that federal American Recovery and Reinvestment Act funds are used for authorized purposes without fraud, waste, error, or abuse. If you have direct knowledge that Recovery Funds are being misused, or there are instances of fraud, waste, error, and/or abuse in the application and utilization of these funds, you should report your allegations to the ARRA Fraud Hotline at 1-866-244-3033 or by email to [email protected]. • The ARRA hotline is maintained by the Office of the State Controller’s Internal Audit Division. The Internal Audit Division is not able to investigate complaints filed anonymously because of the difficulty in obtaining sufficient evidence to corroborate the alleged improper activity. However, your identity can be protected under Maine law by the State Controller and the Internal Audit Division. Types of ARRA Funding • • • • Countercyclical Funding – Most flexible – Two major sources under Recovery Act – Medicaid Enhancement and State Fiscal Stabilization Fund Appropriated Programs – Little flexibility, most are formula funds, while others are discretionary or competitive grants. – Examples include Highway Funding, Weatherization, Clean Water, etc. Safety Net Programs – Quick stimulus to the economy as normally spent fast be recipients. – Examples include food stamps and unemployment benefits. Foundations for Economic Development – ARRA provides for significant number of long-term investments with potential for economic growth – Examples include alternative energy & smart grid technology, broadband deployment, HealthIT, high-speed rail investments, and R&D funding. – To maximize benefit will require significant planning and development by Federal, State and Local Government. Maine Impacts • Approximately $1.2 billion that will flow through Maine government – – – – – – – – – – – – – – $330 million in enhanced FMAP funding $135 million in Education Stabilization funding $131 million in Transportation Infrastructure funding $29 million in Clean Water State Revolving Loan funding $114 million in Supplemental Nutrition Assistance Program Benefits $48 million in Title 1 Education funding $58 million in Special Education funding $42 million in Weatherization funding $27 million in State Energy Program funding $11 million in Energy Efficiency & Conservation Block Grant funding $5.2 million in Community Development Block Grant funding $19.5 million in Drinking Water State Revolving Loan funding $8 million in Public Safety/Law Enforcement programs $15 million in variety of Maine Department of Labor programs • WIA Youth & Adult, Voc Rehab, Dislocated Workers, Employment Services Maine Impacts (continued) • Approximately $650 million in tax benefits to Mainers, including: – $266 million in Making Work Pay Credit, a 6.2% refundable credit up to $400 ($800 joint), with a phase out after AGI above $75,000 ($150,000 joint). – $287 million by increasing the individual AMT exemption – $21 million in Earned Income Tax Credit Expansion in 2009 & 2010 – $19.6 million in Expansion of the Refundable Child Tax Credit – $27 million in Expansion of the HOPE Credit so that it is available for four years at a rate of 100% for the first $2,000 of qualified expenses and 25% of the next $2,000 of qualified expense – $14.2 million expansion of the first time homebuyer credit – $5.4 million deduction of sales tax on new car purchases. • Unknown amount of direct federal spending that does not flow through State Government. Examples include: DOD work at PNSY, FAA Airport Improvement Grants, Improvements at federal buildings, etc… Accomplishments to Date… • • • • • • • State Fiscal Stabilization Application Approved by USDOE Maine was the First State in the Nation to have more than 50% of Maine’s Highway Funding Obligated EPA approval of Drinking Water and Clean Water spending programs Approval by the Joint Select Committee on Energy of the Efficiency Maine Plan for State Energy Program (SEP) and Energy Efficiency and Conservation Block Grant Funding. SEP application in to Department of Energy. Receipt of Notice of Award for Byrne Justice Grants and STOP Violence Against Women funding Weatherization Program Plan developed and submitted to USDOE Initiated several applications for competitive grant funding – DMR/SPO “Ghost Gear Retrieval” grant from NOAA – Small Shipyards – DERA (Diesel Emissions Reduction Act) Transportation Progress • Maine received $154.4 in Transportation Formula/Grant funds: – $130.7 million in Highway/Bridge funding – $13.2 million in Transit funding – $10.5 million in Aviation funding (direct to the Airports except for Augusta Airport) • • • Maine was the first state to meet its “Use it Or Lose It” requirement that 50% of the highway/bridge funds be obligated within 120 days of enactment. 21 days after enactment Maine had obligated 50% of its funds. To date, 71 projects have been advertised, with 50 awarded, obligating $97.7 million. Work has begun on 30 projects, with $15.8 million having been expended and 757 construction jobs in place directly because of the Recovery Act. Water Infrastructure Progress • The Recovery Act provides $29.1 million for investment in wastewater infrastructure and non-point source abatement projects. This money will be administered through the Clean Water State Revolving Fund at the Maine Department of Environmental Protection. • Maine DEP received more than 200 project proposals totaling over $317 million for the $29 million available. 23 projects, developed by sixteen communities/entities, have been identified and approved for the available funding. • Maine was the first state to have an approved plan for use of funds into the White House. • Nine projects have gone out to bid, with six projects currently underway. Weatherization Progress • • • • • • • MaineHousing received $41.9 million in Recovery Act funding for Weatherization. This funding is provided by the United States Department of Energy to increase the energy efficiency of dwellings owned or occupied by lower-income residents. Maine’s program is implemented through the 10 Community Action Agencies (CAAs) across the state. It is estimated that 4,400 households will be served with these funds. Anticipating these ARRA weatherization funds, many CAAs have been building workforce capacity over the past several months and engaging contractors directly. CAAs are encouraged to keep lists of interested contractors for future reference, as needed. CAAs will have annual bid processes for some of the weatherization positions. The Maine Public Utilities Commission has been allotted $27.3 million in State Energy Program funds from the Recovery Act. Of this allocation, the PUC has set aside $10.1 million for non-low income weatherization and energy efficiency. This proposal will be a joint venture with MaineHousing and private lenders with a goal of leveraging $100 million in private capital and impacting 4,000 households in the next two years. Additionally, the PUC is proposing to utilize $400,000 of SEP funds to train up to 250 certified installers and auditors to provide home energy services. The SEP application is pending before the U.S. Department of Energy. Challenges… • GUIDANCE (or lack of) • Managing Expectations – Minimal amount of funding direct to businesses. Some competitive grant opportunities for private businesses at the federal level; however, most assistance for economic/business development is in the form of SBA loans and tax credits. Opportunities for Nonprofits • Not nearly everything – just a snapshot of some of the opportunities… • U.S. Department of Health & Human Services Strengthening Communities Fund (SCF) – two parts – The Nonprofit Capacity Building program will make one-time, two-year awards of up to $1 million to lead organizations that will use the funds to support other faith-based or secular nonprofit organizations. – The State, Local and Tribal Government Capacity Building program will make one-time, two-year awards of up to $250,000 to state, city, county and Indian/Native American tribal governments. Governments will use these grants to strengthen nonprofit organizations and increase the nonprofits’ involvement in projects that help turn our economy around. MANP is in the process of developing a proposal as the state’s designee for this funding. • Economic Development Administration (EDA) – The U.S. Commerce Department received $150 million for EDA grants to address long-term economic distress in urban industrial cores and rural areas. Distributed based on need and ability to create jobs and attract private investment. Priority consideration will be given to those areas that have experienced sudden and severe economic dislocation and job loss due to corporate restructuring. Nonprofit Opportunities Continued • The Maine Department of Health & Human Services will be receiving $5.3 million Community Services Block Grant Funding. Funding is distributed through the 10 Community Action Agencies. The States’ draft plan and the CAAs proposals can be found at www.maine.gov/dhhs/recovery • Maine Arts Recovery Grant Program is a competitive grant program that offers funds to subsidize the preservation of jobs within nonprofit arts organizations. These stimulus dollars intend to help arts organizations as well as Maine’s creative workers in all genres of the arts. The first round is closed with applications being reviewed this month. Should sufficient funding exist, a second round will be made available with applications due September 11, 2009. For more information visit: http://mainearts.maine.gov/recovery/arts.shtml • Rural Community Facilities Program: USDA-administered grants and loans for eligible cities with a population of less than 20,000; may be used to construct, enlarge, or improve community facilities, with public safety and health care facilities given top priority. • Again, these opportunities are a small sampling of formula/competitive funds that are part of the Recovery Act. Would strongly encourage regular monitoring of www.grants.gov as Federal Agencies are announcing several opportunities each week – with activity significantly increasing the past few weeks. Other Resources • • • • • • • • www.maine.gov/recovery www.recovery.gov www.nga.org www.staterecovery.org www.nga.org www.gao.gov/recovery www.grants.gov www.pattonboggs.com – “No Small Change” Lance L. Boucher Director of Recovery Initiatives State of Maine Department of Administrative & Financial Services 207.624.7800 [email protected] Questions?