American Recovery and Reinvestment Act August 2009 The Black Leadership Forum The Joint Center for Political & Economic Studies The National Conference of Black Mayors

3 CBO: June 2, 2009

Purposes of the Act Rescue: – Assist those most hurt by the recession – Assist states with fiscal stress Recovery: – Preserve and create jobs – Increase economic activity Reinvestment: – Support development of new technology to promote economy – Renew existing infrastructure 4

What We Do 1.Get the Money Out 2.Get Money Under Contract 3.Support Infrastructure Development 4.Promote Performance 5.Maintain Support 5

Distribution of Funds Spending:$499 Billion – Discretionary :$308 Billion – Mandatory:$190 Billion Tax Relief:$288 Billion Total:$787 Billion 6 Spending

Spending to Date Obligations$192 Billion (as of July 24) – Outlays $70 Billion Tax Relief$53 Billion (July 31 Est.) Total $245 Percentage of $787= 31.1% 7

Definitions 8 Important terms: Obligations – represents a binding agreement (such as a contract) that will result in outlays (either immediately or in the future) Outlays – occur as the result of an obligation and are cash payments which liquidate the obligation NOTE: Recovery.gov uses “Available” and “Paid Out” as equivalents to “Obligations” and “Outlays” From Recovery.gov as of 8/3/09

Pace of Spending to Date %; $245B

Projected ARRA Outlays and Taxes from Jan 2009 – September 2010 NOTE: This model takes as its basis the CBO estimates of both spending and revenues for FY 2009 and FY Quarterly estimates were developed based on these annual figures. Jan-June 2009 represents actual outlay numbers (published on recovery.gov), and revenue data from the Treasury Department.

Spending Detail State Fiscal Relief (Obligations) – Medicaid:$34.0 billion – Education Fiscal Stabilization:$34.3 billion – Highways:$17.2 billion 11

Spending Detail: Top Ten Programs 12 Dollars in Billions Of the $192 billion obligated as of July 24 th, almost $138 billion has been obligated to the top ten programs

Minority Businesses and ARRA Administration has issued guidance that encourages the use of small and minority-owned businesses for ARRA contracts consistent with federal rules and regulations. Federal direct contracts so far – Total Contracting Dollars Obligated- $7,638,690,901 – Small Business Dollars - $1,722,523,264 (22.5%) – 8(a) Dollars - $632,841,891 (8.3%) – SDB Dollars - $786,572,734 (10.3%) – Minority Dollars - $1,025,053,841 (13.4%) Includes 8(a) and SDB dollars 13 Source: U.S. Small Business Administration, 8/3/09

MBDA.gov 14

Fedbizopps.gov 15

Other Resources CCR.gov Grants.gov SBA.gov/recovery Fedconnect.net Agency Recovery websites State/local Recovery websites Recovery.gov 16

Next Steps David Hinson, National Director, Minority Business Development Agency – – Joseph Jordan, Associate Administrator for Government Contracting and Business Development, U.S. Small Business Administration – – 17