Welcome to Iowa's Economic Recovery Friday, August 14 2009 @ 10:34 AM CDT
Frequently Asked Questions
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How will the ARRA impact Iowa’s economy?
With more than $2.5 billion expected in federal recovery funds, Iowa will see a
positive impact on our economy. In fact, the White House has estimated that more
than 37,000 jobs will be retained or created in Iowa.
The federal recovery resources will Iowa invest in critical areas, such as:
- Investing in Iowa’s infrastructure, such as transportation
- Providing greater access for Iowans to health care
- Continuing support to Iowa’s public schools
- Encouraging greater use of clean and efficient energy in Iowa
- Implementing tax cuts for hard-working Iowans
- Providing additional help to workers hurt by the recession
How will federal funds come into Iowa?
Iowa is expected to receive more than $2.5 billion in direct aid from the federal
economic recovery program, and much more in everything from competitive grants to
tax cuts. Funds from the federal economic recovery program will come to Iowa through
a number of different programs. Some funds will be provided to the State and then
awarded to public, private or non-profit organizations. Other funds will go directly
to local governments, schools, and for profit and non-profit entities. State officials
are continually analyzing the bill and monitoring federal regulations to ensure
that Iowa takes full advantage of all the available funding opportunities.
How are the federal economic recovery funds distributed?
Federal agencies will allocate these funds in five primary ways:
Formula: Funding is allocated by an established federal formula to States and localities.
Examples include:
- Medicaid (Federal Medicaid Assistance Percentage payments)
- State Fiscal Stabilization Fund
- Highway Infrastructure Investment
Competition: Funding is allocated through competitive solicitations. In the coming
weeks, state agencies will distribute requests for proposals and convene panels
to evaluate applications received or state agencies may submit a grant proposal
directly to a federal agency. As the name suggests, competitive funding programs
go through a competitive selection process, therefore, no competitive proposal estimates
are guaranteed until selected. Examples of agencies and programs that have or will
hold such competitions include:
- National Institutes of Health
- National Science Foundation
- Broadband program
Demand: Funding responds directly to demand from eligible individuals. The dollar
amount Iowa receives will vary according to the number of people who qualify and
receive the funding. Current estimates project out the total Iowa expects to receive.
These numbers may change as actual funds are distributed. Demand programs include:
- Premium Subsidies for COBRA Continuation Coverage
- Unemployment Insurance
- Education Pell Grants
- Food Stamps
- Small Business Loans
One-Time Automatic Disbursement: The Recovery act includes some one time benefits,
such as payments of $250 to Social Security, Veterans and Supplemental Security
Income beneficiaries.
Agency Plan: Many programs in the Act allocate funding according to public operating
and spending plans. These programs include:
- Environmental cleanup of nuclear waste sites
- National Parks construction
- Defense and Veterans infrastructure programs
How much money will be available for Iowa’s general fund?
Of the estimated $2.5 billion in funding coming to Iowa under the ARRA, much of
it must be used for specific programs and purposes. Less than half falls into three
categories of funds – Medicaid, State Stabilization for Education, and State Stabilization
for General Funds – that will benefit Iowa’s general fund budget over the next 2-3
years. The most recent estimates of areas in which federal funds can be used in
the state’s general fund over the next few years are:
- Medicaid (FMAP): $420,903,757
- State Stabilization – Education: $386,374,000
- State Stabilization – General Fund: $85,966,000
Is there a schedule of when funds will be available?
Time is a critical factor to the impact and benefit of the federal economic recovery.
And in Iowa, Governor Culver and his Administration has moved quickly in order to
put this program to work for Iowa. Within days of ARRA becoming law, the Governor
appointed a working group representing two dozen agencies to make plans for the
best use of these funds, and the State began making use of the funds in ways ranging
from helping workers looking for new jobs to awarding bids on transportation projects
throughout the state. This calendar,
provided by the Council of State Governments, provides details on key dates and
deadlines on ARRA funds.
What are the timelines for funds to be spent in Iowa?
This will vary significantly depending upon the program. Congress intended the funds
to be spent quickly to maximize their economic impact. The federal agencies administering
the funds are establishing deadlines and clarifying program criteria. This information
will be posted on this website as it becomes available.
What is a shovel-ready project?
The economic recovery plan includes millions of dollars to build and repair America's
roads, bridges, sewer systems, power grids and communications infrastructure. Priority
for funding will be given to "shovel ready" projects - those that have the requisite
approvals and permits in place - so that federal funds can be spent as quickly as
possible, putting Iowa citizens to work and injecting dollars in to the economy
of Iowa.
How is the State of Iowa preparing to use the federal ARRA funds?
Governor Culver has appointed a working group, representing two dozen state agencies,
to provide advice and development plans on how Iowa can make the best use of these
one-time funds. The working group does a number of functions to make sure this happens,
including:
- Monitor, track and report on specific ARRA areas to the larger working
- Identify opportunities and collaborations to maximize funding
- Identify stakeholders, bring them into the process
- Identify ways to inform Iowans about the use of ARRA funding in Iowa
- Identify ways to pursue competitive ARRA funds
- Inter-agency collaborations, public/private collaborations
- Identify ARRA programs that do NOT have a direct state relationship, identify ways
in which the state can provide assistance to
- Develop a plan for implementation in each ARRA category
- Identify ways to track jobs, saved or gained
- Identify ways to leverage ARRA funds with I-Jobs
- Provide recommendations to the Governor and Lt. Governor
This working group consists of representatives of the following offices:
- Office of the Governor
- Department of Cultural Affairs
- Department of Economic Development
- Department of Education
- Department of Elder Affairs
- Department of Homeland Security
- Department of Human Rights
- Department of Human Services
- Department of Management
- Department of Natural Resources
- Department of Public Health
- Department of Public Safety
- Department of Revenue
- Department of Transportation
- Iowa Board of Regents
- Iowa Communications Network
- Iowa College Student Aid Commission
- Iowa Finance Authority
- Iowa National Guard
- Iowa Utilities Board
- Iowa Workforce Development
- Office of Drug Control Policy
- Office of Energy Independence
- Rebuild Iowa Office
In addition, the working group has formed several issue-specific small groups to
focus on key topics, such as:
- Education: Education Stabilization, Pell grants, teacher quality enhancement, college
work-study, statewide data
- Energy: Innovative technology loan guarantee, Energy Efficiency Block Grants, State
Energy Program, EERE R&D, DOE Office of Science, Electric Transportation, Fuels
and Vehicle Technology, Advanced Battery, Fossil Energy, Smart Appliances
- Environment: Habitat Restoration, SRFs, Brownfields, Superfund, Diesel Emissions
Reductions, Underground storage tanks, Rural Water, Watershed, Corps of Engineers
- Health Care: FMAP, Health IT, Prevention and Wellness Fund, Community Health Centers,
Aging Services Programs, SNAP, WIC, TANF, Child Support Enrollment, Community Services
Block Grant, TEFAP
- Housing: CDBG, HOME Investment, Neighborhood Stabilization Program (NSP), Homelessness
Prevention, Weatherization
- Information Technology: Transmission Grid, Broadband
- Public Safety: Byrne-JAG, COPS, VAWA, Victims Compensation, Rural Law Enforcement,
Internet Crimes Against Children
- Transportation & Infrastructure: Transportation Infrastructure, Alternative Buses
and Trucks, Corps of Engineers
- Workforce: Dislocated worker program, WIA (youth and adult), High Growth and Emerging
Industry Sectors, Dislocated Workers Assistance National Reserve, Youthbuild, UI
Mod, TAA, Training Primary Care Providers, Job Corps Modernization, Extension of
Unemployment Benefits, NEA
How long will Iowa have to spend its economic recovery funds?
Different stimulus programs have different timelines for spending. According to
the Congressional Budget Office, 75% of all the economic recovery funds will be
spent in the next 2 years, although some programs will require spending timelines
that are significantly shorter.
Where can I find the full text of TheARRA of 2009?
How can I see how recovery money is being spent in Iowa?
As Recovery Act funding moves forward, this web site will provide details on how
federal recovery money is being spent in the State. The State is developing a resource
by which Recovery Act funding can be monitored by Iowans.
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