Federal and state efforts to spur creation of jobs and economic activity have dominated news in the last year. The American Recovery and Reinvestment Act of 2009 (“ARRA”) constitutes stimulus funding to states and local governments. Funding resources are made available in some cases by formula, and in others, by competitive process.
Donjek is working with school districts and cities to:
- Identify stimulus-related funding sources that address their needs. As part of this evaluation, we also identify long-term operating costs;
- Partner with school district and city staff to apply for those funds to be awarded on a competitive basis, and to ensure that funds awarded on a formula basis are effectively distributed;
- Advocate for appropriations for school districts and cities at the state and federal levels.
As described in further detail below, execution of the ARRA provisions will be large scale and necessarily complicated; as program details emerge, this expectation has been confirmed. Large municipalities are effectively pursuing these resources, and Donjek is proposing to create additional capacity in stimulus funds procurement for municipalities large and small.
Stimulus funds are, generally, to be appropriated in two ways:
- From federal agencies to states, either for state-level investments or state distribution to local governments;
- Directly from federal agencies to local governments or other end users.
The first tranche of stimulus funding for Minnesota school districts took the form of stabilization funds. The State of Minnesota is exchanging these dollars ($500 million) with state funds, meaning that Minnesota districts will not receive new money through this program.
School districts do have an opportunity to access a range of additional stimulus programs, including those in the following general funding categories:
- ARRA Title I;
- ARRA Title II;
- Individuals with Disabilities Act (“IDEA”);
- McKinney-Vento Act;
- Expansion of qualified bonding authorizations;
- Rural Community Facilities program.
Cities may also have access to stimulus funds designated for various uses, and associated with different allocation processes and mandates:
- Broadband Access;
- Brownfield Remediation;
- Energy Efficiency in Public- and Private-Sector Buildings;
- Fire and Emergency Response Staffing;
- Highway Infrastructure;
- Housing Finance and Retrofitting;
- Public Building Renovation;
- Rural Business Development;
- Rural Community Facilities Investments;
- Solar Cities Program.
School districts and cities are financially pressed currently. Evaluating which stimulus sources are worth pursuing in a competitive process will reduce the potential waste of chasing programs as their resources and provisions are unveiled.