Friday, October 30, 2009
Blog Schedule
Just FYI - My intent is to publish this blog at least twice per week. In between, I'll see about answering any questions that anyone may post. I'm here to help if you run into questions about ARRA - that's why the blog is here!
Recovery jobs
Recovery.gov has a page called "Track the Money" . You can check funds awarded, funds received, and jobs created by state, and it all looks very efficient and impressive. But how accurate is the information?
It's the best information that Recovery.gov has available.
A well-written and relevant article in the October, 2009 Governing magazine, entitled "Where Have All the Dollars Gone," starts with the premise that "Some parts of the stimulus are easy to track. Others are impossible."
Of the stimulus money that was put into state budgets in 2009, some 63% went into Medicaid. While this may have the economic recovery effect that is expected, it certainly is not the job-creation vehicle that many people envisioned. And as far as job creation goes, under ARRA, a job retained is now equal to a job created. Originally, jobs retained and jobs created were to be reported separately; now they are lumped together. Anyone familiar with the old shell game? What sort of accurate data can be expected when entities - state, local, and private - report the jobs they would have lost if not for the ARRA money added to their budgets?
Also consider this: What happens when the stimulus money is gone? If my state reports that we retained 200 teachers due to the stimulus money, what happens if the economy does not recover by the time the money runs out? What if those teachers have to be laid off in 2011, because the federal funds to pay them are gone? We all felt good about retaining 200 jobs - and reported 200 jobs retained - but projections for the 2011 state budgets do not show skyrocketing tax revenues.
Reporting jobs has at least one other fuzzy spot: contractors. ARRA requires prime recipients to report jobs created or retained, not just by themselves, but also by their contractors. Rather than forcing receipients to become auditors of their contractors, which would never work, a prime recipient is required to ask contractors for the information, which the contrators may estimate. Let's see, the accuracy of a second-hand estimate is comparable to . . . a story my 13-year old tells me he heard at school?
Accuracy of the funding information will be addressed later, but the jobs number is, in my opinion, little more than a shot in the dark. It may be accurate enough to provide some insight into a general direction, but maybe not. According to the Governing article referenced earlier, unemployment has actually increased since the passage of ARRA. So the question is really what might have happened to employment if not for ARRA. That one I'll definitely leave to the economists to debate.
The bottom line is this: While ARRA may be a wonderful thing, no one should take any report of jobs created or retained because of the stimulus package to be anything more than a guess.
It's the best information that Recovery.gov has available.
A well-written and relevant article in the October, 2009 Governing magazine, entitled "Where Have All the Dollars Gone," starts with the premise that "Some parts of the stimulus are easy to track. Others are impossible."
Of the stimulus money that was put into state budgets in 2009, some 63% went into Medicaid. While this may have the economic recovery effect that is expected, it certainly is not the job-creation vehicle that many people envisioned. And as far as job creation goes, under ARRA, a job retained is now equal to a job created. Originally, jobs retained and jobs created were to be reported separately; now they are lumped together. Anyone familiar with the old shell game? What sort of accurate data can be expected when entities - state, local, and private - report the jobs they would have lost if not for the ARRA money added to their budgets?
Also consider this: What happens when the stimulus money is gone? If my state reports that we retained 200 teachers due to the stimulus money, what happens if the economy does not recover by the time the money runs out? What if those teachers have to be laid off in 2011, because the federal funds to pay them are gone? We all felt good about retaining 200 jobs - and reported 200 jobs retained - but projections for the 2011 state budgets do not show skyrocketing tax revenues.
Reporting jobs has at least one other fuzzy spot: contractors. ARRA requires prime recipients to report jobs created or retained, not just by themselves, but also by their contractors. Rather than forcing receipients to become auditors of their contractors, which would never work, a prime recipient is required to ask contractors for the information, which the contrators may estimate. Let's see, the accuracy of a second-hand estimate is comparable to . . . a story my 13-year old tells me he heard at school?
Accuracy of the funding information will be addressed later, but the jobs number is, in my opinion, little more than a shot in the dark. It may be accurate enough to provide some insight into a general direction, but maybe not. According to the Governing article referenced earlier, unemployment has actually increased since the passage of ARRA. So the question is really what might have happened to employment if not for ARRA. That one I'll definitely leave to the economists to debate.
The bottom line is this: While ARRA may be a wonderful thing, no one should take any report of jobs created or retained because of the stimulus package to be anything more than a guess.
Wednesday, October 28, 2009
OMB Guidance on reporting FHWA ARRA funds by project, not award
We all know that the 1512 reports are to be filed by award, right? Not so fast, says DOT. They want funds reported by project, not award. So what to do? An e-mail was sent out by DOT this morning to clarify the reporting. It basically says that the DOT rules are not inconsistent with OMB's guidance, so follow the DOT rules for those grants. Here is the actual language:
Subject: INFORMATION: OMB Concurrence with FHWA 1512 Guidance
Good Morning: David Winter of the US Department of Transportation has forwarded the following information concerning Federal Highway Administration grants and OMB Section 1512 guidance. The below information is from John Pasquantino of the US Office of Management and Budget and is resultant of several calls between the Secretary of the Department of Transportation and OMB. The concerns center on using the Federal-aid project as the identifier for the 1512 Award, and subsequently providing the total federal obligations and total ARRA obligations for the Award Amount and Total Federal Amount of ARRA Funds Received respectively. Questions on this matter can be addressed to David at:
David R. Winter, P.E.
Director, Office of Highway Policy Information
Federal Highway Administration
david.winter@dot.gov
(202) 366-4631
OMB has provided the following information in relation to this issue.
****************
FROM: John Pasquantino, Office of Federal Financial Management, Office of Management and Budget
OMB’s guidance broadly provides Federal agencies and recipients with a framework for meeting reporting requirements of Section 1512 of the Recovery Act. To provide more detailed application of general guidance, Federal agencies under OMB guidance are to develop and issue supplemental guidance tiered to the OMB guidance. Recipients are to look to the Federal agency supplemental guidance for additional detail and guidance on reporting for awards made through the programs administered by that Federal agency. Should questions arise regarding whether to apply the overall guidance or the Federal agency supplemental guidance, recipients should generally comport their responses with the Federal agency supplemental guidance except in cases in which the Federal agency supplemental guidance explicitly contradicts OMB guidance. In general, recipients are encouraged to work with their awarding Federal agency to address any questions regarding applicability of guidance. In this case, we have reviewed FWHA supplemental guidance and have found it to be not inconsistent with broad OMB guidance.
Subject: INFORMATION: OMB Concurrence with FHWA 1512 Guidance
Good Morning: David Winter of the US Department of Transportation has forwarded the following information concerning Federal Highway Administration grants and OMB Section 1512 guidance. The below information is from John Pasquantino of the US Office of Management and Budget and is resultant of several calls between the Secretary of the Department of Transportation and OMB. The concerns center on using the Federal-aid project as the identifier for the 1512 Award, and subsequently providing the total federal obligations and total ARRA obligations for the Award Amount and Total Federal Amount of ARRA Funds Received respectively. Questions on this matter can be addressed to David at:
David R. Winter, P.E.
Director, Office of Highway Policy Information
Federal Highway Administration
david.winter@dot.gov
(202) 366-4631
OMB has provided the following information in relation to this issue.
****************
FROM: John Pasquantino, Office of Federal Financial Management, Office of Management and Budget
OMB’s guidance broadly provides Federal agencies and recipients with a framework for meeting reporting requirements of Section 1512 of the Recovery Act. To provide more detailed application of general guidance, Federal agencies under OMB guidance are to develop and issue supplemental guidance tiered to the OMB guidance. Recipients are to look to the Federal agency supplemental guidance for additional detail and guidance on reporting for awards made through the programs administered by that Federal agency. Should questions arise regarding whether to apply the overall guidance or the Federal agency supplemental guidance, recipients should generally comport their responses with the Federal agency supplemental guidance except in cases in which the Federal agency supplemental guidance explicitly contradicts OMB guidance. In general, recipients are encouraged to work with their awarding Federal agency to address any questions regarding applicability of guidance. In this case, we have reviewed FWHA supplemental guidance and have found it to be not inconsistent with broad OMB guidance.
Thursday, October 15, 2009
Hello!
Welcome to the new blog, "ARRA Help." This is NOT an "official" site to provide assistance. It is not connected either with the federal government or with my employer. I am simply an informed person who is seeking to provide information about a confusing and complicated subject, the American Recovery and Reinvestment Act of 2009. I hope this will help someone in the days to come, and please remember that everything posted here will be unofficial, so I will try to provide links to official help when possible.
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