Introduction

On Tuesday, February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). This law provides $787 billion of federally-financed economic stimulus funding through a combination of spending programs and reductions in business and individual taxes.

On Thursday, March 12, 2009, the Republican-led Michigan State Senate created the Senate Federal Stimulus Oversight subcommittee to appropriate our state's portion of the monies. Every Democrat voted against the measure (Senate Resolution 19) because we believed the existing Senate Appropriations committee should oversee the distribution of stimulus funds.

However, since senate Republicans hold the majority of the vote, the measure passed and the committee was created. Democrats were then compelled to participate in the process to ensure the stimulus investment be managed according to federal rules and with all fairness, transparency, and expedience.

On Wednesday, April 1, 2009, the Senate Appropriations committee approved HB 4258, which outlined stimulus spending for several state departments including Community Health, Education, Energy Labor & Economic Growth, Environmental Quality, Human Services, and Treasury.

The very next day, the full state Senate passed the measure that is expected to be signed by Governor Jennifer M. Granholm within the week.

IN THE WEEK AHEAD:

• Gov. Granholm is expected to sign HB 4258 into law.
• The legislature will be closed for spring recess and will resume on April 21st.

What You Need to Know

• HB 4258 contains $1.9 billion in federal funds for a total of 10 state departments.
• HB 4258 gives work project status to Department of Human Services monies allowing unspent funds to carry forward until 2012.
• The office of Drug Control Policy within the Department of Community Health will coordinate the distribution of monies to local governments for the prevention and reduction of crime.
• Crime prevention funds available to the state departments will be used for funding state crime laboratories, public safety communications systems, problem-solving courts, and multi-jurisdictional task forces.
• Funding for nutrition and meals programs for local Area Agencies on Aging will be distributed based on existing allocation formulas.
• Special education funding will be disbursed through existing criteria.
• Stabilization monies for local school districts will restore cuts in K-12 funding for fiscal years 2010 and 2011 and increase the districts' proportionate share of Title I support.
• HB 4258 requires the Michigan Economic Recovery Office to develop a system to post and maintain on the internet a detailed listing of all stimulus expenditures.
• HB 4258 requires any state department that uses a competitive grant process for the distribution of funds to provide reports to the Legislature and the Office of State Budget before the issuance of request for proposals.

Facts & Figure$ (SNAPSHOTS)

Department of Community Health

$41.2 million - Total amount that state and local governments will receive to prevent and reduce crime through the Edward Byrne Justice Assistance Grants.

$3.2 million - Funding that local Area Agencies on Aging will receive to provide nutrition and meals programs for low income senior citizens.

Department of Education

$900.4 million - Total funding for state of Michigan

$530.8 million - Detroit Public Schools portion of education funding

$37.3 million - Dearborn Public Schools portion of education funding

$4 million - River Rouge School District portion of education funding

$3 million - Wayne RESA special education funding

Education Funding Details

Title I
Detroit - $120.1 million
Dearborn - $8 million
River Rouge - $876,168

Special Education
Detroit - $30.4 million
Dearborn - $3.9 million
River Rouge - $449,709

Incentive Grants
Detroit - $25.4 million
Dearborn - $1.7 million
River Rouge - $185,082

Stabilization Funding
Detroit - $354.8 million
Dearborn - $23.7 million
River Rouge - $2.6 million

Department of Energy, Labor, and Economic Growth

$13.4 million - Amount statewide Michigan Works! agencies will receive to support re-employment services for those who receive unemployment benefits.

$183.3 million - Funding for job training services for adults, youths and displaced workers. Distributed to Michigan Works!.

$18.8 million - Additiona l statewide funding for job training and employment services under the Federal Trade Adjustment Assistance program.

$15.4 million - Amount distributed to Michigan Rehabilitation Services for work with disabled clients.

$290,000 - Funding given to Centers for Independent Living.

$4.1 million - Statewide funding for Michigan Commission for the Blind.

Department of Environmental Quality

$1.8 million - Total amount Detroit Public Schools will receive to purchase diesel em i ssion reduction equipment for its school bus fleet in compliance with the Diesel Emissions Reduction Act.

$171 million - Moniesto be used for pollution control grants, loans and innovative projects. Paid directly to local governments.

$67 million - Funding for drinking water grants, loans, and innovative projects. Paid directly to local governments.

$8 million - Cleanup of contaminated underground storage tank sites.

$30 million - Loan to Detroit to replace combined sewers to minimize basement backups in the Oakwood Sewer district.

$6.4 million - Total loan forgiveness - principal only - extended to Detroit from the State Revolving Fund for monies received to protect and enhance its water system.

Department of Human Services

$244 million - Totalfunding for weatherization programs for low-income households.

Double for your trouble - Low income individuals/families can now qualify for weatherization help with household incomes twice the federal poverty guidelines by calling the weatherization hotline at (313)852-5265 to schedule an appointment.

April 1, 2009 - Weatherization program begins. Services include wall insulation, window repair, some roof work, some appliance replacement, pipe insulation, caulking and weather stripping. Limit per household $6,500.

$4 million - Statewide funds for domestic violence prevention and treatment. Protects children.

$150 million - Amount of increase to food assistance programs.

13.6% - Percentage of food assistance increase.

April 1, 2009 - Food assistance increase added to bridge cards.

Department of Treasury

$9.3 million - Total monies available for programs including infrastructure and housing projects that creates jobs for low-to-moderate income workers.

Highlights On the Horizon

Several of my Democratic colleagues and I sent a letter to Gov. Granholm requesting she enforce programs that provide opportunities for woman-owned businesses and enterprises headed by people of color to bid and work on statewide transportation projects.