Economic Stimulus Landscape

Economic Stimulus Landscape

Liza Lowery MasseySenior Fellow

Center for Digital Government

stim u lus⋅ ⋅ stim u lus⋅ ⋅ 

stim u lus – ⋅ ⋅ n. [stim-yuh-luhs]

a) change in the environmentb) acts to arouse actionc) something that triggers a responsed) something that incites to action or exertion or 

quickens action....

stim u lus⋅ ⋅ stim u lus⋅ ⋅ 

stim u lus – ⋅ ⋅ n. [stim-yuh-luhs]

ren o vate – ⋅ ⋅ v.  [ren-uh-veyt]

a) to restore to good condition; make new or as if new again; repair

b) to reinvigorate; refresh; revive.

Noun and a Verb: Means to an EndNoun and a Verb: Means to an End

www.govtech.com/renovationnation

17761776 20092009 At 230+ years, there are no green field opportunities. Brings everything of value forward, makes ready for another season of service.

Why Renovation?Why Renovation?

1930-19351930-19351835-18691835-1869

Old School Public WorksOld School Public Works

It was not our wealth that made our highways possible. It was our highways that made our wealth possible.

- Thomas Harris MacDonald, US Bureau of Public Roads, 1953

1950s1950s 1980s1980s

The Long ViewThe Long View

1960s1960s 1990s1990sARPANET COMMODITY INTERNET

The Long ViewThe Long View

Signs of the TimesWork Progress Administration (WPA)1936National Archives

American Recovery and Reinvestment Act of 2009recovery.gov

National Recovery Administration (NRA)1933National Archives

The Flag

The URL

Green Tech Infrastructure

Health Care

$787 Billion –If it were a country, it would be the 20th largest economy in

the world.

“Only a crisis, real or perceived, produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around.”

-Milton FriedmanChicago School free market economist

Crisis is a Terrible Thing to Waste

In the January 22 issue, Economist Paul Krugman wrote an open letter to the new president:

“As much as possible, you should spend on things of lasting value, things that, like roads and bridges, will make us a richer nation. Upgrade the infrastructure behind the Internet; upgrade the electrical grid; improve information technology in the health care sector, a critical part of any health care."

“Provide aid to state and local governments, to prevent them from cutting investment spending at precisely the wrong moment.”

The Idea Lying Around

“They're talking about a government that's still a trillion, 500 billion dollars. We ought to then have a smart, trillion, 500 billion dollar government, not a dumb one.

“Lincoln built the trans-continental railroads, one of the key factors in the rising Republican majority of his generation. Theodore Roosevelt built the Panama Canal. Eisenhower proposed the interstate highway system as a national defense act…. There are smart things government should do.…

“There's a huge jump from the transcontinental railroad president to a pothole presidency. What I've seen so far is a tendency to have relatively tiny projects that have no strategic impact on the country's long-term future.”

Shovel Ready, Funding Worthy?

• Roads were important. But without cars, insurance, traffic signals, driving schools, civil engineering schools, car and driver registration systems, fuel distribution networks, and parking lots, the benefits would be minimal.

• Electrical wires were important. But without electricity generation, standards, appliances and programs to help people use electricity (regulations on utilities, etc.) the benefits would be limited.

• Today, wired and wireless networks are important. But without widespread digital take-up and literacy; standards, shared practices and systems (e.g., security, identity resources, etc.); tools (computers, sensors, software) and applications (e.g., e-health, telematics, e-gov, etc.) the benefits will be limited.

Digital Recovery

VolunteerismDemocratization

PragmatismInspiration

renewal renovation

community philanthropy

Consensus view of policy makers or state executives and state CIOs in identifying those areas most likely to become a higher priority in the coming biennium.

Priorities Then and Now: Stay True

Swapping Out the Plumbing

This drawing is to blame for the cloud

Homer’s Cloud: Let Somebody Else Do It

Cities of King County WA eCityGov.net North Central Texas Council of

Governments iCommunities New York Digital Towpath Newport News, VA (Open eGov) Service New Brunswick Free File Alliance nicusa.com force.com G2G App Exchange YouTube Google Maps Flickr twitter Social Networking (Facebook, myspace,

Ning, Nexo, Twango) Social Platforms (KickApps, Open Social,

Socialcast)

New Models of Collaboration

iLive.at - Doing errands in DC will never be the same.DC Historic Tours -- A walking tour planner, powered by a Google Maps-Flikr-Wikipedia mashup, minimizes steps and maximizes experiencePark It DC -- fighting the constant circling, the unnecessary meter plugging and even expensive tickets that come with finding a parking spot in DC.Where's My Money? DC -- The buck stops at a Facebook Forum on public expenditures, procurement and accountability.DC Crime Finder -- Ripped from the databases, not the headlines -- a customizable look at crime in the neighborhood.Stumble Safely -- Making the streets of DC safe for pub crawls.PointAbout Alerts -- an iPhone app makes crime reports, building permits and other civic data location-aware in that you see the stuff that is closest to you firstWe the People Wiki -- An editable Vox populi for our Web 2.0 times, embedding the voice (or keystrokes) of the people through an editable, peer-led community reference website based on Washington, D.C. public data.

260 data feeds in DC library47 apps in 30 days$20,000 in prize money

People’s Choice

The District's new Car Pool Mashup

attracted 22 percent of the 3,320 votes

and DC Bikes took another 13 percent.

Co-Creating the Future

Renovation: Getting to Done

“The spigot of … spending that opened on 9/11 is closing ....”

-Defense Secretary Robert GatesApril 5, 2009

The New Federal Spigot

The “Stim’ Trio

Health Information Technology (HIT) Standards and adoption incentives for electronic medical records -- $2 billion to invest in health information technology and $17 billion in incentives for Medicare and Medicaid providers.

Sustainability Expand

renewable energy

Double production of alternative energy

Modernize schools and 75% of federal buildings

Green the fleet

Infrastructure• Expand

broadband access

Smart Grid (Energy), Transportation

Invest in science, technology and research

• The $787 Billion American Recovery and Reinvestment Act (ARRA)– Preserve and Create jobs– Assist those in need– Advancements in technology and science– Investments in infrastructure, transportation and

environment– Stabilize state and local government budgets

ARRA: Jobs, Stabilization and “Next”

• How Much Money is There?• $280 Billion for State and Local Government– Distributed to state and local governments through grants

and direct assistance

• $49 Billion to State and Local in FY 2009– 90% of the FY 2009 funding dedicated to transportation,

education and health

State and Local’s Share

Mapping the Funds

Liza Lowery MasseySenior Fellow

Center for Digital Government

Courtesy: NSI, 2009

Overview of the Stimulus PlanThe Stimulus Plan focuses 8 broad streams

Source: Recovery.gov

* In Billions

Slicing $787 BillionHighlighted Areas Allocation IT EstimateState and Local Stabilization $ 114 Billion

Broadband $ 7.2 Billion $ 5.5 Billion

K-12 Education $ 56 Billion $ 620 Million

Transportation $ 48 Billion TBD

Smart Grid $ 11 Billion $ 2.2 Billion

Health IT $ 19 Billion $ 13.5 Billion

Public Works (Construction) $ 100 Billion TBD

Clean Energy/ Clean Water $ 42 Billion TBD

Original R&D/ Fed IT Infra $ 4.7 Billion $ 1.2 BillionSource: White House/ ARRA, 2009

Funding Flows

Federal Agencies

CompetitiveGrants

Direct AidDiscretionary

Grants

State / Local Governments States

State / Local Government

Cities/Counties

Administered separately across 15 federal agencies, 215 funding lines and 86 grant programs.

Can be combined in creative ways that demonstrate the whole really is more than the sum of the parts.

That will necessarily include bringing something to the table, including but not limited to local resources and collaboration agreements that reflect that the proposal is a priority to the requesting communities.

Existing Channels/ Partnerships

Existing Contracting Vehicles

80% of purchases come through term or convenience contracts Sell against the ones that you and your partners are on

Aggregation Vehicle States Counties Cities

State Term/ Convenience Contracts 95% 90% 93%

US Communities Program 5% 50% 26%

Western States Contract Association (WSCA)

55% 40% 58%

General Services Administration (GSA) Schedule

55% 80% 71%

Other 32% 50% 38%Source: Center for Digital Government, 2008-2009

Year 1 Expenditures (after Year 1 Expenditures (after adjusting for tax incentives): ~ adjusting for tax incentives): ~ $120 Billion.$120 Billion.

Stimulus coincides with Stimulus coincides with procurement reform and small procurement reform and small business preferences.business preferences.

Spending must be (a) fast, (b) wise Spending must be (a) fast, (b) wise and (c) transparent – pick your and (c) transparent – pick your bottleneckbottleneck

Wild Cards: Hoarding, swapping Wild Cards: Hoarding, swapping and an a la carte approachand an a la carte approach

The Bottlenecks

Certifiably Stimulative States have a 45-day window -- until April 3, 2009 -- to certify that they will

"request and use" stimulus. To date, Connecticut, Illinois, Kansas, Massachusetts, Michigan, New

Hampshire, Ohio, Oregon, Texas, Virginia, Wisconsin and Wyoming have certified.

Reticence to accept all stimulus funds may stem from bow wave from one time money.

Risk that states will divert, delay and hoard

• 16 States Will Receive Bi-Monthly Spending Reviews– U.S. Government Accountability

Office (GAO) picked 16 states to monitor spending

• Accountability– States are concerned with lack of

funding dedicated to accountability and oversight

– Decline in staffing hinders capabilities– Differing accounting software may

pose difficulties

States StatesArizona Mississippi

California New Jersey

Colorado New York

Florida North Carolina

Georgia Ohio

Illinois Pennsylvania

Iowa Texas

Massachusetts Washington, D.C.

Michigan

Transparency and Accountability

Governors can choose to spend 18.2 percent, or $8.8 billion, of their portion of the $53.6 Billion Stabilization Fund allotment on public safety. Other provisions for the benefit of criminal justice and law enforcement:$1 billion for checked baggage and checkpoint explosives detection machines$730 million on border and port security $150 million on public transportation and railroad security $500 million for wildfire mitigation;$210 million in firefighter assistance grants for building new facilities or modernizing older ones.$1 billion to fund 5,500 local police officers through Community Oriented Policing Services (COPS) program$2 billion in the Edward Byrne Justice Assistance Grants (JAG) program -- 60 percent to the states and 40 percent to local law enforcement efforts.$225 million in Violence Against Women Act Grants.$100 million through OJP for grants to assist victims of crime$225 million for tribal law enforcement assistance$50 million for the Internet Crimes Against Children Task Forces.$390 million from OJP for local law enforcement assistance$125 million targeted for rural areas$40 million for the Southern border

Criminal Justice and the ‘Stim’

Defining “Meaningful Use”– Meaningful use must be demonstrated…but first, it must be defined– Discussions surrounding the definition are ongoing– Definition will determine how HIT is deployed

– Industry groups are submitting their definitions which include:• Adopting CCHIT as the certified EHR standard• EHRs being used to e-prescribe• A phased approach to adoption• Connection to a health information exchange (HIE) or alternative

connection methods in the short-term while HIE is in development• Interoperability

Electronic Health Records

State Plans– California, New York have proposed health information technology

infrastructure plans – Other states have started their infrastructure plans.– New York

• HEAL NY Phase 10 $60 million to improve care for patient-centered medical homes using health information technology

– California

• Johan Frohlich appointed as Deputy Secretary for Health Information Technology, Health and Human Services

Electronic Health Records

Health Information TechnologyOffice of the National Coordinator for Health Information Technology• Health IT Standards Committee has been created to recommend, implement

specs and certify criteria for the electronic exchange and use of Health Information Technology.

• $2 billion - Funded through the ONCHIT • Decision Makers: Membership of the Health IT Standards Committee Electronics Health Records Incentives for Professionals affiliated with Medicine

Advantage Plans• To encourage the adoption and meaningful continued uses of electronic

health records.• Limited to $17 billion distributed in Medicaid Payments.• Decision Makers: HHS Secretary

Hearings are being held– $4.7 Billion- Broadband Technology Opportunity Program (BTOP)– $2.5 Billion- Distance Learning and Telemedicine Program

– Congress’ priority is to ensure schools, community centers universities, hospitals and public safety personnel have high-speed access

– NTIA is currently consulting with states, FCC and RUS– Developing a common application form for both programs

Broadband

National Telecommunications & Information Administration– $4.7 Billion- Broadband Technology Opportunity Program (BTOP)– Encouraging local government partnerships

Challenges– Defining “broadband”, “unserved” and “underserved”– Deciding what applications to fund– Seeking applicants that:

• Deliver an affordable service to the greatest population of users in an area• Enhance healthcare, education in an area• Socially/Economically small businesses• Greatest broadband speeds to the greatest areas• Hoping to make broadband available for:

– Video conferencing– Smart grids– Health IT– Research and science

Broadband

Timeline– A Notice of Funding Availability (NOFA) will be released in roughly two

months detailing:• Application process• Requirements and progress reports• Job creation measurements

Funding• Funding in three waves– Early Fall 2009– Fall/Winter 2009– Spring 2010

NTIA: Broadband

Broadband Grant Opportunities

Broadband Technology Opportunities Program (TOP)• To accelerate broadband deployment in un-served and underserved areas• $4.7 billion Competitive Grant Program• Decision Maker: National Telecommunications & Information AdministrationDistance Learning, Telemedicine & Broadband Program• To support grants, loans and loan guarantees for broadband infrastructure

through the Department’s Rural Utilities Service Broadband Loan Program• $2.5 billion in Grants & Loans• Decision Maker: Secretary of Agriculture

State Progress– States are planning highway projects

• Repairs, restoration construction projects

– Projects must be approved by Federal Department of Transportation• Priority given to projects that can be completed in three years• Priority given to economically distressed areas

– Few projects have started• According to the GAO, only $6.4 billion of the $26.6 Billion has

been obligated

Transportation

Education Technology OpportunitiesEnhancing Education Through Technology• To improve student achievement through use of technology in elementary and

secondary schools.• $650 million in Formula Grants• Decision Maker: Office of Elementary & Secondary SchoolsInstitute Of Education Sciences• For statewide data systems that include postsecondary and workforce information• $250 million in Discretionary / Competitive Grants• Decision Maker: Office of Post Secondary EducationIDEA Part C• To assist states to maintain and implement a statewide coordinated, multi-disciplinary,

interagency system to provide early intervention for infants and families with disabilities.

• $500 million in Grants to States• Decision Maker: Office of Special Education

Green Information TechnologyFacility Infrastructure Investments

– To provide funding for facility sustainable restoration and modernization associated with maintaining physical structures at Department of Defense post, camps and stations.

– $4.2 Billion in total to all branches of Service.Federal Building Fund

– To carry out for the purpose of Federal Building Fund for modernization and repair.

– $5.5 billion – Decision Maker: General Service Administration

Department of Homeland Security Headquarters – To provide funding, planning, design, construction, site security, information

technology infrastructure, fixtures and related cost to consolidate the Department of Homeland Security Headquarters.

– $200 Million discretionary– Decision Maker: Office of Undersecretary for Management

What is the Projected Timeline for Funds to be Made Available to States and Localities?

• About 90% of ARRA funding in FY 2009 will be provided to states and localities in the health, transportation and education programs.

• In FY 2010 and FY 2011 ARRA funds are targeted towards establishing capabilities to develop and promote long term economic growth including alternative energy and smart grid technology; Health IT; broadband deployment and access; high speed rail; funding for research and development.

47

Date Program Description Funding

May 18th Health IT Deadline for program description.

N/A

May 18th National Surface Transportation System

Grant criteria due. $1.5 billion

June 17th High Speed Rail Deadline for grant terms.

$8 billion

June 30th Highway Infrastructure Deadline to obligate 50% of funds.

N/A

July 1st State Fiscal Stabilization Phase two award of SFSF funds.

N/A

July 10th State Report 1st quarterly report due.

N/A

October 10th State Report 2nd quarterly report due.

N/A

Deadlines: 2009

Date Program Description Funding

Feb. 17th Clean Drinking Water Funds

Deadline for beginning construction for priority status.

$6 billion

Feb 17th National Surface Transportation

Grant awards announced.

$1.5 billion

March 2nd Highway Infrastructure Investment

Deadline for funds to be obligated.

N/A

Sept. 30th NTIA Broadband (BTOP) Deadline for awards. $4.35 billion

Sept. 30th COPS grants End of additional funding.

$1 billion

Sept. 30th ARRA Funds All ARRA funds available until this date.*

N/A

Deadlines: 2010

Urgent Start

APRIL 2009 MAY 2009FEBRUARY 2009 MARCH 2009

HR 1 signed into law

Block Grant

Awards

Reporting on use of

funds begins

$ 7.9 B for Job

Creation

$ 10. 1 BHousing

Assistance

Home Weatheriz

ation Funds

Released/ UI

Benefits Increase

$ 155 MHealth Center Construction

Funds

$ 830 MNOAA

Innovation Funds

$ 610 MNIST

Research Funds

$ 8.4 BPublic Transit Funds

Reporting on Entitlement

Funding Begins

Performance Plans become

publicly available

Detailed financial

reports go public

Reporting on competitive grants and contracts

begins

$ 15 B Federal Medical

Assistance Percentage

(FMAP) funding

NTIA begins series of discussions on allocations of its portion of $ 7.2 B in

broadband funding

The Long RunwayThe Office of Management and Budget will issue new guidelines on contracting by September 30, 2009.“Fair, full and open competition” may attenuate process, heightening importance of existing vehicles to get money moving. It could take 2 – 4 years to spend the first $787 Billion. There is still time to get aligned….

How do I Get My Share?Start Now or Sooner

• Knowledge is Power• Who Makes the Call

Meet the Criteria• Jobs, Jobs, Jobs• Get the Guidelines

Accountability• Presidential Priority• Not Just a Spreadsheet• Funds Provided

No such thing as free money: unprecedented reporting and accountability requirements

Big league competition: Those taking a flyer need not apply

Don’t apply if you can’t get out of your own way

Too busy and/or constrained to do anything with it even if you received Stim funds

Four Reasons to Take a Pass

State ‘Stim’ Sites and a Tweetwww.recovery.gov www.grants.gov http://www.recovery.ca.gov

‘Stim’ II and III?

Line forming for Stim II and maybe even III – they are the new spigot

May not be omnibus as was the originalThe online and paper forms inviting proposals

that have proliferated around Congress and around state capitols point to a sequel.

www.govtech.com/renovationnation