Commonly known as the federal stimulus bill, the American Recovery and Reinvestment Act of 2009 (ARRA), signed into law by the President on February 17, 2009, addresses our present economic crisis and builds a foundation for our future. It helps struggling families, creates and saves jobs, and promotes economic recovery and growth.

The federal government has established a website (www.recovery.gov) to provide transparency and accountability for the American Recovery and Reinvestment Act. The site includes the full text of the Act, timelines for federal actions and recipient reporting, news releases, links to federal agency websites for specific stimulus program information, tracking of states' progress, and other useful information.

The stimulus czar is Delaware’s Lieutenant Governor, Matt Denn.

Delaware expects to receive more than $800 million in federal stimulus monies. Our state agencies, colleges and universities, and private non-profit organizations will have the opportunity to compete for additional grants. The White House has projected that these resources will save or create more than 11,000 jobs for Delawareans, as well as provide tax cuts to working families, while also helping to protect essential state services that Delawareans rely upon every day.

The stimulus resources will enable Delaware to make targeted investments in the critical sectors of our economy that will create and grow jobs, by:

Funds from the federal stimulus package will come into Delaware through varying programs, with a wide range of different eligible recipients. Some funds will be provided to state departments and then awarded to public, private or non-profit entities to perform funded work. Other funds will go directly to local governments, schools, and for profit and non-profit entities. Federal agencies in Delaware will receive still other funding. Governor Markell’s administration continues to analyze the federal bill to identify all funding opportunities.

Some funds have been allocated to the State of Delaware via a formula and will be overseen and distributed by the state. Other formula funds have been allocated, for oversight and distribution, to cities, metropolitan planning organizations, community action agencies and other entities.

In addition, a range of Delaware entities will have the opportunity to compete for other funds. More information will be provided about funds for which entities can compete as it becomes available.

Federal funds will be distributed to state and local governments, non-profit agencies, and other organizations, not directly to individuals.

There are funds the bill makes available to help individuals, like unemployment compensation funds or funds to support food assistance programs. These funds will be administered by state and local agencies, not through this website.

If you are an individual seeking direct assistance provided for individuals under the bill, please contact the government agency that oversees the specific program – such as the Department of Health & Social Services for information regarding the food assistance program the Department of Labor for unemployment compensation benefits. If you aren't sure which agency to call, contact the Delaware Helpline at 1-800-464-4357.

The Act includes extensive provisions to ensure that states spend funds in ways that are consistent with its purposes. Requirements include:

• Certification by the Governor that infrastructure expenditures have been fully reviewed and are an appropriate use of tax dollars,
• Public access to contract and grant information, including requests for proposals for competitive grant programs,
• Federal oversight, reviews and audits, coordinated by a Recovery Act Accountability and Transparency Board (see below),
• Access by federal inspectors and the Recovery Act Accountability and Transparency Board to information needed to ensure accountability.

Delaware, like all states receiving these funds, is required to report the following information to the federal government:

• How the funds are being used,
• Descriptions and status reports on stimulus-related projects,
• Estimates of jobs saved or created by federal stimulus activities, and
• Estimates of tax increases averted because of federal stimulus funds

On the national level, the American Recovery and Reinvestment Act establishes an oversight board of inspectors general (the watchdogs of government) called the Recovery Accountability and Transparency Board, which is responsible for overseeing federal agencies to ensure that there is transparency and accountability for the expenditure of recovery funds.

Unfortunately, the additional federal aid will help alleviate the crisis, but will not solve the problem by itself. Delaware’s Fiscal Year 2009 (beginning July 1, 2008) shortfall is currently estimated to be over $750 million. However, only about $155 million of the federal funds coming to Delaware can be used to balance our state’s budget. The rest must be spent on specific activities as required by Congress in the legislation signed by the President.

Yes. State, local and private entities cannot use federal stimulus funding for a casino or other gambling establishment, aquarium, zoo, golf course or swimming pool.

Local school districts and higher education institutions are prohibited from using funds for payment of maintenance costs; stadiums or other facilities primarily used for athletic contests or exhibitions or other events charging admission; purchase or upgrade of vehicles; improvement of stand-alone facilities whose purpose is not the education of children; maintenance of systems, equipment or facilities; modernization, renovation or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the public; or modernization, renovation or repair of facilities used for sectarian instruction or religious worship, or in which a substantial portion of the functions of the facilities are subsumed in a religious mission.

Most tax incentives in the Act are tied to the federal tax code. The Internal Revenue Service (www.irs.gov) is your best source of information.

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