1. 2009 GRA Annual Policy Conference July 27, 2009 Marcia Howard mhoward@ffis.org ARRA, the Federal Budget and the States Federal Funds Information for States www.ffis.orgwww.ffis.org

2.  Cost of enacted legislation = $787 billion  Major Components:  Formula aid to state and local governments (~ $250 billion)  Aid to individuals through WIC, SNAP, extended UI, etc.  Tax breaks and bond provisions  Competitive grants to further administration priorities in areas of green jobs, technology (HIT, broadband), R&D Federal Funds Information for States www.ffis.org

6.  Increase in Medicaid matching rate (FMAP) ~ $82 billion  All states are held harmless at their FY 2008 FMAP levels for FYs 2009, 2010 and the first quarter of 2011.  All states receive a 6.2 percentage-point increase in their FMAPs.  States receive a bonus FMAP addition depending on how much their unemployment rates have increased over a base level.  Medicaid MOE eligibility provisions apply.  First two provisions apply to Foster Care and Adoption. Federal Funds Information for States www.ffis.org

7.  State Fiscal Stabilization Fund  General Government Purposes ~ $8.8 billion ▪ Cannot use funds for casinos, aquariums, zoos, golf courses or swimming pools; restoring or supplementing a “rainy day” fund; paying down past debt; financial assistance to students to attend private schools  Education Stabilization Fund ~ $40 billion ▪ Advancing Education Reforms ▪ MOE Requirements ▪ Use of Funds Federal Funds Information for States www.ffis.org

8.  Capital Funding – Smaller share than anticipated  Transportation ~ $47 billion  State Certifications  Highways – 50% of funds obligated by 6/30/2009  Transit – 50% of funds obligated by 9/1/2009  Education  School construction; modernization, renovation or repair Federal Funds Information for States www.ffis.org

9.  Build America Bonds (New) - capital ▪ Tax Credits and Direct Payments, Economic Development ($10 billion cap)  Education ▪ Qualified Zone Academy Bonds (repairing facility, providing equipment, developing course materials, and training teachers) ~ $1.4 billion cap ▪ Qualified School Construction (new) ~ $11 billion cap  Energy ▪ Qualified Energy Conservation ~ $3.2 billion cap ▪ Clean Renewable Energy Bonds ~ $2.4 billion cap Federal Funds Information for States www.ffis.org

10.  Can states spend this much money quickly?  Are targeted programs staffing up?  Does capacity exist to make rapid capital investments of this magnitude?  Can local school districts manage the infusion of federal funding? Federal Funds Information for States www.ffis.org

11.  What happens in FY 2011 and beyond?  Balancing the state budget  Downsizing an upsized staff  Aid to local governments, schools Federal Funds Information for States www.ffis.org

12.  ARRA Reporting Requirements  Administrative Costs  Matching/MOE Requirements  Information Management  Measuring Success  Increased Federal Oversight Federal Funds Information for States www.ffis.org