FOR IMMEDIATE RELEASE:                                                                                  CONTACT: Erin McNeill

March 19, 2009                                                                                                                   (617) 722-1551

                                                                                                                                                 erin.mcneill@state.ma.us

Joint Committee on Federal Stimulus Oversight hears administration plans for project funding and accountability

Boston – Administration officials today told the Joint Committee on Federal Stimulus Oversight that they were working to establish processes to provide oversight of spending under the Massachusetts Recovery and Reinvestment Plan and to ensure the process would be as open as possible.

 Senator Marc Pacheco (D-Taunton), senate chairman of the committee, said, “I appreciate the pledge from the governor’s team to provide an unprecedented level of transparency, and I urge the governor to ensure that information goes out to the public as it becomes available.”

 Secretary of Administration and Finance Leslie Kirwan told the committee that the federal bill is well aligned with Massachusetts’ investment priorities – focusing for example on infrastructure improvement, wind, solar and biofuels development, broadband expansion and education – and is therefore well-positioned to benefit from the opportunities presented by the federal stimulus plan.

 “Massachusetts was also well ahead of the curve in mobilizing to put newly available federal funds to use quickly and with maximum transparency,” Kirwan said. She added that the governor would soon file legislation “to ensure compliance with the new federal recovery legislation and position the Commonwealth to secure the maximum benefit from this bill.”

 The administration presented the current estimated breakdown of categories and total potential funding:

• Clean Energy and Environment, including energy efficiency efforts: $482 million
• Education: $1.995 billion
• Housing, including community development block grants: $430 million
• Labor and Workforce development, such as training: $90 million
• Public safety and security: $72 million
• Safety Net programs, such as unemployment and food stamps: $3.573 billion
• Technology and research, including broadband expansion programs: $1.295 billion
• Transportation- highways, rail, airports: $809 million
• Tax benefits: $5.295 billion.

 Federal spending will be distributed through several channels, with some money going directly to existing state and local government programs, and some to be distributed through a competitive grant process.

 The officials offered the following websites for the public to get further information:

Federal information is available at Recovery.gov.

State information can be found at Mass.gov/recovery, where information will be posted as it becomes available.    

Infrastructure Funding

 Jeffrey Simon, who heads the office of infrastructure investment, a newly created position to handle stimulus infrastructure funding, said the state’s share of infrastructure spending will be between $1 billion and $2 billion, but said the exact figure is not yet certain.

 He said projects that are selected for funding must be “shovel ready” – or ready to be advertized for bids.  Other criteria for selection include:

• The number of jobs the project would create
• Regional equity in distribution of projects
• The project’s impact on operating budgets
• The long term investment represented
• How the project reinforces Massachusetts’ strengths
• Whether the project fits into state development priorities

 “I was pleased to hear Jeff Simon tell us that information on the bidding for infrastructure projects would be available on the state’s website,” Pacheco said. “Any member of the public will be able to go to the site to find the specifics on winning bids, as well as reports on ongoing projects.

 Second hearing

Senator Pacheco announced that a second hearing next week would focus on how the attorney general, inspector general and state auditor plan to provide project oversight and accountability and ensure that public agencies carry out the Massachusetts Recovery and Reinvestment Plan properly.

 Pacheco said he is specifically asking the administration to provide guidance on whether preference can be given during the bidding process to those companies and contractors who have not previously been banned from state or federal work or otherwise disciplined.

“We want the work to go to Massachusetts companies that work within the legal bounds and have shown themselves to be honest and trustworthy partners,” Pacheco said.

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