Stimulus funding is now flowing briskly, on schedule!
by Mary Scott Nabers
CEO of Strategic Partnerships, Inc.
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Another $17 billion in State Fiscal Stabilization Funds, used to help stabilize state budget deficits, was allocated by mid-June, but only $4.3 billion of that amount had been drawn down by the states. Texas is still waiting for its share.
All of the 16 states surveyed have received notification of their justice assistance grant allotments. This money is to be used primarily for public safety. But, only half of the states have actually obligated the funds. Many received so large an increase they are struggling to use it within guidelines and timelines. Texas, for instance, will receive $147.5 million in justice assistance grant (JAG) funding. That is in stark contrast to the $10.9 million it received last year.
While thousands of government contracts have been awarded nationwide, thousands more are waiting to be released.
Federal mandates have slowed the spending of some $186 million in stimulus funding allocated to 170 low-performing housing agencies in the 16 states in the GAO survey. As of mid-June, only $15.1 million of that amount had been obligated. The money will be spent on such projects as parking lot repaving, rehabilitation of multi-unit structures, roof and window replacements, heating, ventilation and air conditioning (HVAC) systems, upgrades or replacements and interior rehabilitation work such as kitchen or bathroom renovations and flooring or carpet replacements. Vendors with interest in providing these types of services should be seriously focused on getting involved locally now.
A large portion of the State Fiscal Stabilization Fund money has already been received, but many states have not yet obligated the funds. Texas, which only recently applied for its share of funding, stands to gain a total of $3.9 billion. The funds can be used for a variety of purposes. Some states plan to use the money for public safety or in corrections budgets, while others prefer to spend the money for upgrades and/or rehabilitation of school buildings. Others are still waiting on government guidance as to exactly how the funds can be used before they begin contracting with private sector firms.
Nearly $16 billion for more than 5,000 transportation infrastructure projects nationwide has been obligated and some states are awarding contracts daily. Colleges and universities that had put HVAC or building projects on hold now have the money to begin capital projects. This activity should grab the attention of construction firms, architects, engineers, landscapers and others.
State weatherization projects have been approved from a $5 billion program at the federal level. Texas has already received $32 million of a $326 million allocation for its weatherization projects. The funds can be used for energy efficiency projects such as installing insulation, sealing leaks around doors and windows or modernizing heating equipment.
So, while the Recovery Act money is making its way to the states at what may seem like a slow pace, government contractors should know that the process is working and money is flowing briskly. Strategic Partnerships is tracking all of the Recovery Act funding. Reports on a variety of funding sources and individual projects are available on the SPI Web site under "Recent Reports."
