Stimulus boosts dev’t programs
Thursday, 19 November 2009 03:58
by Jude Lizama | Variety News Staff
JOSEPH M. Diego, USDA Rural Development Area II director, discussed how an influx of funds through the American Recovery and Reinvestment Act has boosted the current USDA Rural Development budget resulting in an increase of development opportunities.
“We didn’t get a special budget to help with the Guam buildup but the stimulus package has been a substitute for that and benefited a lot of the projects that we are engaged with outside of the fence,” Diego said referring to communities outside the military bases.
USDA Rural Development received $3 billion to add to its guarantee program for loans and grants; $1.1 billion for low-interest direct loans and $61 million in grants for nonprofit community organizations.
Stimulus monies also boosted housing programs in the rural development budget with just under $1 billion and $3.7 billion for the infrastructure program. Stimulus funds expire in September 2010.
Since 2001, the rural development program has invested more than $1.1 billion nationwide for equity and technical assistance to finance and foster growth and home ownership, business development, and critical community and technology infrastructure. Guam received roughly $300 million of that during the same period.
Kenneth Lujan, manager for U.S. Small Business Administration, discussed future local development opportunities for the island but noted a critical shortcoming.
“The problem is we lack grant writers. We lose a lot of money,” Diego said. “We have grants available for the villages but the mayors are so busy working with their communities, they don’t have time to write the grants.”
But Lujan said a collaboration with USDA has been made to ensure that needs of the small business community are met.
Lujan said the Small Business Development Center is another assistance tool geared toward providing free services in preparing business plans in addition to one-to-one counseling. “We do have a lot of these programs that you can throw yourself to,” Lujan said. “It’s just a matter of you coming in for assistance.”
Diego also cited opportunities to assist businesses in achieving renewable energy initiatives and energy efficiency. USDA Rural Development can provide energy grants to “for-profit” businesses up to $500,000 and loans up to $25 million to assist businesses with investments.
Showing posts with label Stimulus. Show all posts
Showing posts with label Stimulus. Show all posts
Wednesday, November 18, 2009
Friday, October 09, 2009
CNMI ranks lowest in ARRA money spending
Commerce wants public to consider factors
By Haidee V. Eugenio
Reporter
The CNMI is at the bottom of the list when it comes to spending federal stimulus funding, according to an updated report from the federal tracking system.
At the same time, the CNMI Department of Commerce is now soliciting requests for proposals from qualified information technology contractors to create its American Recovery and Reinvestment Act of 2009 reporting system.
As of 3pm yesterday, seven contractors have picked up copies of the RFP at the Division of Procurement and Supply in Lower Base. The deadline for submission of bids is Oct. 21.
As of Sept. 30, the CNMI has only spent $358,669 or 0.8 percent of the $44,736,824 in ARRA funding so far made available to it, data from recovery.gov shows.
The total amount announced for the CNMI stands at over $53 million.
The CNMI's spending level is the lowest among 50 states, five territories, and three Pacific nations receiving ARRA money.
'Fairness'
But Commerce Secretary Michael Ada, when asked for comment yesterday, said there are several dynamics that need to be considered when it comes to ARRA money expenditure.
“The reason our percentage is now less than 1 percent is because more money has come in. As I have mentioned in previous communications to the press, there is lag time for fund draw downs simply due to systems. The other reason for our expenditures being 'behind' even among smaller jurisdictions could be the type of funds being drawn down,” Ada said.
For example, the money could have gone to things like Medicaid payments which are easier spent as the funds cover Medicaid reimbursements, than energy money, he said.
“In addition, you need to consider that the CNMI government is not the only recipient of the money, so it is unfair to blame the expenditure lag strictly on the central government,” he added.
He said the Northern Marianas College, Northern Marianas Housing Corp., Commonwealth Ports Authority, and Public School System all received direct money that didn't come through the CNMI executive branch and whose money doesn't go into the central government's Financial Management System.
For fairness' sake, he said, the same questions should be asked of autonomous agencies.
Other territories
To date, Guam has already spent $17.3 million or 17 percent of the $103.5 million made available to it.
American Samoa has so far spent $4.6 million or 9 percent of $51.9 million in available ARRA funding.
The U.S. Virgin Islands has spent $19.7 million or 19 percent of $101.7 million ARRA money, while Puerto Rico spent 28 percent or over $813 million of $2.854 billion available so far.
Even Palau, the Marshall Islands, and the Federated States of Micronesia spent more in ARRA money than the CNMI. Palau has so far spent $950,000 or 37 percent or over $2.5 million in ARRA money. FSM has so far spent over $3.6 million of $5 million in available federal stimulus funds, while the Marshall Islands, $1.8 million of over $2.9 million.
Press secretary Charles Reyes, when asked for comment yesterday, said “Michael Ada and all relevant staff are working on these issues and placing the highest possible priority on the expeditious processing of such funds.”
Delegate Gregorio Kilili C. Sablan (D-MP), in a news briefing on Tuesday, said he understands the need for strict financial control when it comes to ARRA funding.
But Sablan said it raises concerns when even Guam and American Samoa are bound by the same strict financial controls and are still able to move much faster in allocating and spending ARRA money.
“I'm pleading.we need recovery dollars in our economy as soon as possible,” he told reporters.
Procurement
Ada said the procurement process also holds up a great deal of the contracting, obligation, and ultimately, expenditures of ARRA money.
Procurement regulations require a 30-day posting of RFPs, followed by the evaluation, negotiation, and subsequent contract award, and this only obligates the money, he said.
In addition, provisions such as “Buy America” have proven to be an obstacle in projects as simple as lighting retrofits.
“Another thing to note is that just because other jurisdictions have quickly spent money doesn't mean they have done so with accountability, transparency, and responsibility, but that has yet to be seen,” Ada told Saipan Tribune in an e-mail response.
The CNMI, according to Ada, also reported updates to the federal tracking system and the numbers will not be made available until Oct. 31.
“The reports are due on the 10th. We have from the 11-30th to amend, and they become public on the 31st. This is per the Recovery Accountability and Transparency Board. In addition, I am not sure what the autonomous agencies reported, so it is premature in all aspects,” Ada added.
In closing, Ada said the ARRA issue is a complex one.
“It is very hard to break down in snippets so where folks can really grasp it. I think it would help everyone have a better understanding of this and for you to provide a clearer picture to your readers,” he added.
On Sept. 18, Saipan Tribune reported that the CNMI spent only 1 percent or $332,000 of the $27.935 million in federal stimulus money that was made available as of that date.
By Haidee V. Eugenio
Reporter
The CNMI is at the bottom of the list when it comes to spending federal stimulus funding, according to an updated report from the federal tracking system.
At the same time, the CNMI Department of Commerce is now soliciting requests for proposals from qualified information technology contractors to create its American Recovery and Reinvestment Act of 2009 reporting system.
As of 3pm yesterday, seven contractors have picked up copies of the RFP at the Division of Procurement and Supply in Lower Base. The deadline for submission of bids is Oct. 21.
As of Sept. 30, the CNMI has only spent $358,669 or 0.8 percent of the $44,736,824 in ARRA funding so far made available to it, data from recovery.gov shows.
The total amount announced for the CNMI stands at over $53 million.
The CNMI's spending level is the lowest among 50 states, five territories, and three Pacific nations receiving ARRA money.
'Fairness'
But Commerce Secretary Michael Ada, when asked for comment yesterday, said there are several dynamics that need to be considered when it comes to ARRA money expenditure.
“The reason our percentage is now less than 1 percent is because more money has come in. As I have mentioned in previous communications to the press, there is lag time for fund draw downs simply due to systems. The other reason for our expenditures being 'behind' even among smaller jurisdictions could be the type of funds being drawn down,” Ada said.
For example, the money could have gone to things like Medicaid payments which are easier spent as the funds cover Medicaid reimbursements, than energy money, he said.
“In addition, you need to consider that the CNMI government is not the only recipient of the money, so it is unfair to blame the expenditure lag strictly on the central government,” he added.
He said the Northern Marianas College, Northern Marianas Housing Corp., Commonwealth Ports Authority, and Public School System all received direct money that didn't come through the CNMI executive branch and whose money doesn't go into the central government's Financial Management System.
For fairness' sake, he said, the same questions should be asked of autonomous agencies.
Other territories
To date, Guam has already spent $17.3 million or 17 percent of the $103.5 million made available to it.
American Samoa has so far spent $4.6 million or 9 percent of $51.9 million in available ARRA funding.
The U.S. Virgin Islands has spent $19.7 million or 19 percent of $101.7 million ARRA money, while Puerto Rico spent 28 percent or over $813 million of $2.854 billion available so far.
Even Palau, the Marshall Islands, and the Federated States of Micronesia spent more in ARRA money than the CNMI. Palau has so far spent $950,000 or 37 percent or over $2.5 million in ARRA money. FSM has so far spent over $3.6 million of $5 million in available federal stimulus funds, while the Marshall Islands, $1.8 million of over $2.9 million.
Press secretary Charles Reyes, when asked for comment yesterday, said “Michael Ada and all relevant staff are working on these issues and placing the highest possible priority on the expeditious processing of such funds.”
Delegate Gregorio Kilili C. Sablan (D-MP), in a news briefing on Tuesday, said he understands the need for strict financial control when it comes to ARRA funding.
But Sablan said it raises concerns when even Guam and American Samoa are bound by the same strict financial controls and are still able to move much faster in allocating and spending ARRA money.
“I'm pleading.we need recovery dollars in our economy as soon as possible,” he told reporters.
Procurement
Ada said the procurement process also holds up a great deal of the contracting, obligation, and ultimately, expenditures of ARRA money.
Procurement regulations require a 30-day posting of RFPs, followed by the evaluation, negotiation, and subsequent contract award, and this only obligates the money, he said.
In addition, provisions such as “Buy America” have proven to be an obstacle in projects as simple as lighting retrofits.
“Another thing to note is that just because other jurisdictions have quickly spent money doesn't mean they have done so with accountability, transparency, and responsibility, but that has yet to be seen,” Ada told Saipan Tribune in an e-mail response.
The CNMI, according to Ada, also reported updates to the federal tracking system and the numbers will not be made available until Oct. 31.
“The reports are due on the 10th. We have from the 11-30th to amend, and they become public on the 31st. This is per the Recovery Accountability and Transparency Board. In addition, I am not sure what the autonomous agencies reported, so it is premature in all aspects,” Ada added.
In closing, Ada said the ARRA issue is a complex one.
“It is very hard to break down in snippets so where folks can really grasp it. I think it would help everyone have a better understanding of this and for you to provide a clearer picture to your readers,” he added.
On Sept. 18, Saipan Tribune reported that the CNMI spent only 1 percent or $332,000 of the $27.935 million in federal stimulus money that was made available as of that date.
Monday, August 10, 2009
$65 Million in New Revenue for Guam
$65M in new revenue: Bill aims to spend $540M in fiscal 2010
By Brett Kelman • Pacific Daily News • August 11, 2009
Buildup construction and federal economic stimulus funding could generate up to $65 million in new revenue for the government of Guam next fiscal year, Office of Finance and Budget Director Chris Budasi told senators yesterday.
Of that possible $65 million, a "conservative" budget proposal being reviewed by lawmakers would result in spending only $30 million, Budasi added.
The spillover will be used to shrink GovGuam's deficit, he said.
For every new dollar injected into Guam next fiscal year, GovGuam expects to make a dime, Budasi said.
Senators met to begin discussions about how much money GovGuam expects to receive and spend next year. The revised budget bill would spend about $540 million of
General Fund money to run the government and $101 million to pay tax refunds.
The General Fund spending allocated in this year's budget was about $20 million less than the proposed fiscal 2010 budget bill.
Budasi, who helped propose the budget bill with Democratic Sen. Ben Pangelinan's finance committee, said new revenue streams will be created by the coming military buildup and President Obama's plan to invigorate the economy by pouring money into local governments.
The coming military buildup will bring about 8,000 Marines, their 9,000 dependents and as many as 10,000 skilled laborers to Guam over the next few years. An unprecedented level of construction is needed to ready the island for its new residents -- and whoever does that construction must pay taxes.
Budasi cited the new Naval Hospital, which will be rebuilt over the next few years so it can accommodate Guam's growing military population, as an example of a project that would generate revenue for GovGuam.
"It's a $450 million project that we believe is going to be broken up over the next four fiscal years. Some of the activity is going to hit in this fiscal year then in subsequent years," he said. "We cut that $450 million number up, and we apply our adjustment to it for how much of that money we think is going to stay in the economy. ... And then that is the number that we believe is activity that will generate additional tax revenue."
Budasi said another source of new revenue are federal economic stimulus dollars Guam will receive shortly. Gov. Felix Camacho submitted an application last week for more than $108 million in economic stimulus projects.
Most of that money must be spent in the next few years, and a lot of the funding will be spent on repairs or construction at local schools or public projects. Whoever does that work must pay taxes too, generating revenue, Budasi said.
Revenues questioned
Republican Sen. Eddie Calvo, a former chairman of the legislative committee on finance, questioned the estimated revenue increases in the bill.
Calvo has announced he is running for governor in 2010 and, if he wins, he could inherit the budget the Legislature debated yesterday.
Calvo questioned if Pangelinan's revenue estimate was too high or based on unverified numbers. Pangelinan said the revenue estimates were based on the government's actual cash collection.
Republican Sen. Ray Tenorio, who's running with Calvo, worried Pangelinan's committee hadn't considered that GovGuam may have less money this year than planned. According to an estimate from the Bureau of Budget and Management Research, GovGuam will generate about $9 million less this fiscal year than had been projected.
Pangelinan said his committee had already factored that into the fiscal 2010 numbers.
Both Calvo and Tenorio asked Pangelinan to call some of Guam's government finance experts to review and validate the revenue projections presented by Budasi. Democratic Sen. Rory Respicio objected to the experts being called.
Respicio said he felt that every time the senators called those experts to review a proposed budget, revenues "magically" matched whatever GovGuam needed to spend. Instead, Respicio felt the Legislature should move ahead with the revenues presented by Budasi.
Tenorio said it was "unfathomable" that any senator would object to financial experts being called to review a budget proposal. Tenorio and Respicio left the floor to argue about the issue.
Those experts didn't take the floor yesterday, but may be brought in today. Session resumes at 9 a.m.
Tourism
Tourism, which is traditionally one of Guam's largest revenue sources, isn't expected to change much next fiscal year, according to Budasi's budget proposal presentation.
Budasi said the number of tourists next year will hopefully hold steady, but each tourist is expected to spend a little less while they are here, based on Guam Visitors Bureau estimates from June.
"We ran the numbers out and it looks like about a $7 million decrease to the economy," he said.
A GVB report released last week showed a 37 percent drop in tourist arrivals in June, partially because of a rocky economy and fears about the H1N1 influenza pandemic, but GVB General Manager Gerry Perez said the worst was probably over.
Perez said Budasi's estimate for the Legislature was a "fair representation" of what Guam's tourism numbers for next year may be, and because the future is never certain, it helps to be a little conservative.
"Based on everything we know, we expect there to be a slight improvement for the next fiscal year," he said. "Now keep in mind that any catastrophic thing could happen as well. We never expected H1N1."
Education
The proposed budget discussed by senators yesterday would appropriate less money to the Department of Education than last fiscal year, and far less than school system leaders requested.
The department, formerly the Guam Public School System, almost always gets the largest chunk of GovGuam's budget, but rarely gets as much funding as requested.
If passed as is, the budget bill would appropriate about $183 million to the department. A budget request approved by the Guam Education Policy Board in March asks for $263 million.
Last year, the school system requested $263 million, but received $189 million. Guam Education Policy Board Chairman Joe San Agustin has said repeatedly that the lack of full funding is responsible for many of the school system's shortcomings.
By Brett Kelman • Pacific Daily News • August 11, 2009
Buildup construction and federal economic stimulus funding could generate up to $65 million in new revenue for the government of Guam next fiscal year, Office of Finance and Budget Director Chris Budasi told senators yesterday.
Of that possible $65 million, a "conservative" budget proposal being reviewed by lawmakers would result in spending only $30 million, Budasi added.
The spillover will be used to shrink GovGuam's deficit, he said.
For every new dollar injected into Guam next fiscal year, GovGuam expects to make a dime, Budasi said.
Senators met to begin discussions about how much money GovGuam expects to receive and spend next year. The revised budget bill would spend about $540 million of
General Fund money to run the government and $101 million to pay tax refunds.
The General Fund spending allocated in this year's budget was about $20 million less than the proposed fiscal 2010 budget bill.
Budasi, who helped propose the budget bill with Democratic Sen. Ben Pangelinan's finance committee, said new revenue streams will be created by the coming military buildup and President Obama's plan to invigorate the economy by pouring money into local governments.
The coming military buildup will bring about 8,000 Marines, their 9,000 dependents and as many as 10,000 skilled laborers to Guam over the next few years. An unprecedented level of construction is needed to ready the island for its new residents -- and whoever does that construction must pay taxes.
Budasi cited the new Naval Hospital, which will be rebuilt over the next few years so it can accommodate Guam's growing military population, as an example of a project that would generate revenue for GovGuam.
"It's a $450 million project that we believe is going to be broken up over the next four fiscal years. Some of the activity is going to hit in this fiscal year then in subsequent years," he said. "We cut that $450 million number up, and we apply our adjustment to it for how much of that money we think is going to stay in the economy. ... And then that is the number that we believe is activity that will generate additional tax revenue."
Budasi said another source of new revenue are federal economic stimulus dollars Guam will receive shortly. Gov. Felix Camacho submitted an application last week for more than $108 million in economic stimulus projects.
Most of that money must be spent in the next few years, and a lot of the funding will be spent on repairs or construction at local schools or public projects. Whoever does that work must pay taxes too, generating revenue, Budasi said.
Revenues questioned
Republican Sen. Eddie Calvo, a former chairman of the legislative committee on finance, questioned the estimated revenue increases in the bill.
Calvo has announced he is running for governor in 2010 and, if he wins, he could inherit the budget the Legislature debated yesterday.
Calvo questioned if Pangelinan's revenue estimate was too high or based on unverified numbers. Pangelinan said the revenue estimates were based on the government's actual cash collection.
Republican Sen. Ray Tenorio, who's running with Calvo, worried Pangelinan's committee hadn't considered that GovGuam may have less money this year than planned. According to an estimate from the Bureau of Budget and Management Research, GovGuam will generate about $9 million less this fiscal year than had been projected.
Pangelinan said his committee had already factored that into the fiscal 2010 numbers.
Both Calvo and Tenorio asked Pangelinan to call some of Guam's government finance experts to review and validate the revenue projections presented by Budasi. Democratic Sen. Rory Respicio objected to the experts being called.
Respicio said he felt that every time the senators called those experts to review a proposed budget, revenues "magically" matched whatever GovGuam needed to spend. Instead, Respicio felt the Legislature should move ahead with the revenues presented by Budasi.
Tenorio said it was "unfathomable" that any senator would object to financial experts being called to review a budget proposal. Tenorio and Respicio left the floor to argue about the issue.
Those experts didn't take the floor yesterday, but may be brought in today. Session resumes at 9 a.m.
Tourism
Tourism, which is traditionally one of Guam's largest revenue sources, isn't expected to change much next fiscal year, according to Budasi's budget proposal presentation.
Budasi said the number of tourists next year will hopefully hold steady, but each tourist is expected to spend a little less while they are here, based on Guam Visitors Bureau estimates from June.
"We ran the numbers out and it looks like about a $7 million decrease to the economy," he said.
A GVB report released last week showed a 37 percent drop in tourist arrivals in June, partially because of a rocky economy and fears about the H1N1 influenza pandemic, but GVB General Manager Gerry Perez said the worst was probably over.
Perez said Budasi's estimate for the Legislature was a "fair representation" of what Guam's tourism numbers for next year may be, and because the future is never certain, it helps to be a little conservative.
"Based on everything we know, we expect there to be a slight improvement for the next fiscal year," he said. "Now keep in mind that any catastrophic thing could happen as well. We never expected H1N1."
Education
The proposed budget discussed by senators yesterday would appropriate less money to the Department of Education than last fiscal year, and far less than school system leaders requested.
The department, formerly the Guam Public School System, almost always gets the largest chunk of GovGuam's budget, but rarely gets as much funding as requested.
If passed as is, the budget bill would appropriate about $183 million to the department. A budget request approved by the Guam Education Policy Board in March asks for $263 million.
Last year, the school system requested $263 million, but received $189 million. Guam Education Policy Board Chairman Joe San Agustin has said repeatedly that the lack of full funding is responsible for many of the school system's shortcomings.
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