With hundreds of millions of dollars of federal stimulus funds set to flow into state government and out again in a short period of time, measures are being put into place that will help track every dollar until it is spent.
Mirror accounts, a more rigorous spending approval process, an up-to-the-minute Web site and frequent reports to the Legislature’s Appropriations Committee are some of the ways the additional federal funding – which some say could approach $1 billion for Maine – will be accounted for, said Ryan Low, commissioner of the Department of Financial and Administrative Services.
“The stuff we’ve done so far has been more process related,” said Low Friday as his department was beginning the process of sifting through more than 1000 pages that contain the details of the 2009 American Recovery and Reinvestment Act. “Process isn’t sexy, but we don’t want to end up in a situation when we have hundreds and hundreds of millions of dollars coming into state government and then we spend three weeks trying to figure out what we’re going to do.”
In many cases, the funds will flow into programs that are already in place – such as Medicare funding or transportation project schedules – but will be tracked separately in what Low called “mirror accounts.” These accounts will serve the same purpose as accounts that already exist, but ensure there will be no crossover between state money and stimulus dollars.
“Every stimulus dollar will be in one of these mirror accounts,” said Low. “What we don’t want is for it to be commingled.”
From there, spending stimulus dollars will require a financial order, a level of approval that is not required for most state spending. The financial order requires review and signatures from State Budget Officer Helen Schneiter, Low and Gov. John Baldacci. At that point, the Legislature’s Appropriations Committee will be informed of the expenditure. Low said he expects to brief that committee on a regular, possibly weekly, basis.
In addition to those measures, there may be some areas where additional personnel will be needed to usher the funding through the process, said David Farmer, Baldacci’s deputy chief of staff.
“We’ve asked each of the departments to look at what’s in the stimulus bill in terms of moving forward,” said Farmer. “It’s possible that we’ll need some audit-type positions … but we will look to be very cautious about positions we add so there is not permanent job creation from this particular funding source.”
Putting a specific number on how much stimulus aid is coming to Maine is difficult because much of it will flow through formulas that require state matching dollars or will alter the balance of revenue in those programs, said Low. He and others have been delving through the bill since it was passed by Congress Friday.
Farmer said that there is some concern in the administration about the deepening economic crisis, which is increasing participation in Medicaid, unemployment and other services associated with people losing income.
“We’re seeing an increase in utilization and enrollment,” said Farmer. “That money will be extremely helpful, but there’s a serious strain on the system right now.”
House Speaker Hannah Pingree, D-North Haven, agreed.
“That money is going to go pretty quickly,” she said. “This is a down economy and more people are using those services. The Legislature will provide oversight so we can ensure that money is used in the best way possible.”
To increase transparency, Baldacci’s office has launched a new Web site for tracking stimulus dollars. The site, which will remain active until every stimulus dollar has been spent, also includes a section for comments from the public. The Web site’s address is www.maine.gov/governor/baldacci/policy/Recovery2009.html.
(Statehouse News Service)
