The Institute's Staff

October 2009  

1. OCTOBER UPDATE ON ARRA SPENDING
2. EDUCATION INNOVATION GRANTS ANNOUNCED

OCTOBER UPDATE ON ARRA SPENDING

Joel Yesley, PhD

Maryland Budget & Tax Policy Institute

Recovery Act

Nearly 1000 jobs created or saved to date in Maryland businesses - Data so far only covers a sliver of the total impact

The federal government has just released data pertaining to ARRA funds that have been awarded to private businesses throughout the nation.  This data reveals that over $16 billion has been awarded to 9,000 businesses, of which approximately $2.2 million has been received, with a resulting impact of over 30,000 jobs either saved or created.  Within the state of Maryland, $590.5 million has been awarded to these entities, of which $48.2 million has been received, with a resulting impact of 965 jobs saved or created. 

These numbers represent only a small sliver (well under one-third) of the impacts of the overall program.  They do not include funds that have gone directly to states in the form of grants, much of which is directed to those most affected by the recession in the form of entitlements (e.g., unemployment compensation, Medicaid and food stamp supplements), as opposed to spending on physical infrastructure projects.  In fact, the data provides an incomplete picture of contract spending, as it does not include many subcontractors or suppliers, who are not required to file recipient reports (mandated only for prime contractors).  At the end of this month, reports covering a much wider range of spending will be released to the public.  

See www.recovery.gov             

Human Resources programs to get quarter billion over two years

This month’s update will focus on the allocation of ARRA funds received by the Maryland Department of Human Resources (DHR) among its various programs to assist those in need.  The clientele served by this agency are the most vulnerable to the adverse recessionary impacts.

DHR is scheduled to receive total funds amounting to $253 million over the two-year time frame of the program.  These funds will be used to increase funding for programs that support needy families across the state, such as food stamps and temporary cash assistance, as well as to defray administrative expenses incurred by these programs.  The bulk of these recovery dollars are linked to entitlement programs.   The following paragraphs detail the projected use of these funds by individual program.

Slightly more than one-half of these funds ($134.2 million) are allocated to the Supplemental Nutrition Assistance Program (SNAP), formerly called the Food Stamp Program.  The addition of these funds will provide for a 13.6 % increase, on average, in benefit levels.  For a family of four, this will amount to an additional $80 per month to spend on food. 

The next biggest recipient of program funds will be Temporary Assistance to Needy Families (TANF) programs, which are set to receive $61.3 million in “emergency” funds.  Under the ARRA Program, the federal government will match cash assistance spending by the states in excess of base year spending on a four to one basis.  Therefore, $1 million in state spending that exceeds the base year amount will be matched by $4 million in federal dollars.  These funds will be used for basic assistance, such as Maryland’s Temporary Cash Assistance Program for needy families, one-time grants such as payments to prevent eviction or utility shut offs, as well as to subsidize employment.

The third largest recipient of these funds will be the state’s program to improve child support collections, which is set to receive $33 million in matching funds over the next two years.  These funds can be used for increasing public awareness, to establish community outreach programs and activities, to improve automation capabilities, and to privatize and outsource child support enforcement services, among other activities. 

Nearly $20 million of these ARRA funds have been reserved to provide for a temporary increase in federal Medical Assistance Payments (FMAP) to families in DHR’s Foster Care and Adoption Assistance Programs.  The federal matching share will be increased from $.50 to $.56 per dollar of state funds.  These funds will be used to pay for the out-of-home placement of children and many of the services provided to them as well as adoption subsidies.

The balance of the ARRA funds (nearly $4 million) will be divided between the Emergency Food Assistance Program (TEFAP) and the Victims of Crime Assistance (VOCA) Program.  TEFAP will receive $3.1 million over a two-year period that will be distributed among the state’s emergency food shelters in the form of food commodities and grant dollars to meet administrative expenses.  The VOCA Program will receive nearly $.9 million to augment grants to entities that provide services in four priority victim categories—domestic violence, sexual assault, child abuse, and underserved populations. 

EDUCATION INNOVATION GRANTS ANNOUNCED

Bebe Verdery

American Civil Liberties Union of Maryland

The Dept of Education’s Investing in Innovation (i3) Fund grants will distribute $650 million to local school systems, including those partnering with non-profits, or a consortium of partnering schools, to advance education reform in grades K-12 under the American Reinvestment and Recovery Act.

The competitive grants will focus on DOE’s four reforms areas:  

1. Better Data Accountability systems
2. Highly effective teacher and equitable distribution of teachers
3. Turning around the lowest performing schools
4. High standards and high quality assessments

The Secretary of Education will look at several factors for each grant, including:  (1.) the experience of the applicant,(2.) need for the project, (3.) strength of research, (4.) quality of the project evaluation and (5.) strategy and capacity to bring the project to scale.    The applicant’s project MUST include the four reform areas mentioned above and competitive preferences will be given for projects that include: (1.) Innovations for improving early learning outcomes, (2.) Innovations that support college access and success (3.) innovations to address students with disabilities and LEP students and (4.) High need students within a rural LEA.

The comment period for the i3 grant’s proposed priorities will close on November 9, 2009.  The final notice will be released in late winter/early spring.  Applications will be due in Spring 2010 and grants will be awarded in late summer/ early fall.  

GRANT TYPES:

1. Scale up grants

Grants for large organizations that have proven their effectiveness and have statistically significant data over a few years to show proven improvements and will be reaching large numbers of students - (100,000 to 1 million students) Scale ups are targeted to national and regional levels

   2.  Validation grants

Should have moderate evidence and statistically significant effect on students and have the potential to be substantial and important improvements in achievement. These grants are targeted for regional and state levels.  

  3.   Developmental grants
Must have a reasonable hypotheses and are promising and warrant further study, they will be smaller in scope. Targeted to state and local levels.

For more information or to comment on the notice, visit:  http://www.ed.gov/programs/innovation/index.html

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