To the many people in the many places who are wondering how much federal stimulus cash is coming to Maine, the state’s finance chief has a standard answer: “By Friday we’ll have a better idea.”
That’s what Ryan Low, commissioner of the Department of Administrative and Financial Services, told the Legislature’s Appropriations Committee Tuesday afternoon. Since the $787 billion 2009 American Recovery and Reinvestment Act gained Congressional approval last week and President Obama’s signature Tuesday, the anticipation of knowing the details pervades conversations here and across the country.
“We’ve all been getting asked questions,” said Rep. Emily Cain, D-Orono, who co-chairs the Appropriations Committee. “Everywhere I went this weekend everyone said, ‘so how much money are we getting, where is it going to and how can we spend it?’ We’re all getting bombarded with those questions whether we’re on this committee or not.”
Low, who was named the state coordinator of the stimulus funds Friday by Gov. John Baldacci, skirted questions about specific amounts until he and his staff decipher the 1100-page stimulus document.
“We continue to go through the bill trying to understand all the different details,” said Low. “In a lot of cases all the details aren’t in there. It relies on the agencies at the federal level going through some kind of process where they develop rules. We know a little bit more every day. By Friday we’ll have quite a bit of material to share.”
Sen. Richard Rosen, R-Bucksport, asked to what extent the money will benefit the current fiscal year, which ends June 30. Across the state, government agencies, hospitals, clinics and schools are struggling to absorb $140 million in cuts enacted by the Legislature last month in response to sliding revenues.
“From a timing point of view that’s something we’re going to need to understand pretty quickly,” said Rosen.
Low said the money is meant for services or projects occurring between Oct. 1, 2008 and Dec. 31, 2010, but cautioned against creating a “cliff” in an ailing program by merely delaying cuts. He said that’s particularly important in general purpose aid for education, which suffered a $27 million cut in the current fiscal year and is proposed for flat funding in the next two.
“There’s no getting around the fact that at some level there is going to be some kind of cliff created there,” said Low, who stressed that probably more than 95 percent of Maine’s stimulus funding is for existing programs, not discretionary spending. “It’s putting it together in a way that’s responsible and recognizing the places where you can use funds strategically like renovation and energy efficiency.”
During questions about the process for administering the cash, Rep. David Webster, D-Freeport, bristled when he thought he heard Low suggest that legislative committees serve as advisors to the state’s departmental commissioners.
“We’re the ones who will be responsible at home for the decisions that those commissioners make,” said Webster. “I want to be clear … we want to have more of a partnership to propose and then dispose.”
Low said that’s what he wants, too, and according to a press release circulated Tuesday, Baldacci agrees.
“This system will allow for appropriate Legislative oversight of stimulus funding while also providing the flexibility necessary to move fast,” stated Baldacci. “As we move forward, I am prepared to modify this process if necessary to improve the results.”
Low said he’ll address the stimulus package with the Appropriations Committee again Friday at 10 a.m. in Room 228 of the State House.
(Statehouse News Service)
