Capitol Comments

Proposal Seeks to Force Sanford’s Hand

By Mikel Chavers, CSG Associate Editor

Amid swirling questions of constitutionality and the powers of levels of government, South Carolina’s legislature is taking a new way around the governor to get all Recovery Act funding set aside for the state. A joint resolution filed this week by South Carolina Sen. Vincent Sheheen would force the governor to accept all the funds—including the $700 million Gov. Mark Sanford said he is rejecting because he can’t use it to pay down the state’s debt.

Basically, Senate Joint Resolution 691—which would have the force of law if passed—orders the governor to apply for state fiscal stabilization funds available under the American Recovery and Reinvestment Act, according to Sheheen.

“It makes it a duty of the governor’s office to apply for the funds and accept them into the state,” Sheheen said in an interview with State News.

Sheheen is looking to run for governor in 2010, according to The Post and Courier in Charleston.

States Get Stimulus Dollars to Cut Diesel Emissions

By Kelley Arnold, CSG Membership Outreach

State efforts to clean up the air are getting some help from federal stimulus funds.

In late March, the U.S. Environmental Protection Agency announced that nearly $300 million would be made available through the American Recovery and Reinvestment Act to reduce diesel emissions. Each state and Washington, D.C., will receive $1.73 million from the EPA. Another $208 million is available through competitive grants.

Recovery Act funds will be used to “implement clean diesel projects that would cut thousands of tons of diesel emissions, including particulate matter and nitrogen oxides. As a result, the projects would also reduce premature deaths, asthma and other respiratory ailments, lost work days and many other health impacts every year,” the EPA said in a March 20 press release.

Feds Release $155 Million for Community Health Centers

President Barack Obama today announced the release of $155 million of federal stimulus funds to support 126 new health centers across the country.

Community health centers provide people  – often those without health insurance – comprehensive primary and preventive health care services. The administration projects these centers will help more than 750,000 patients and create 5,570 jobs.

See how much each state will receive and learn more about community health centers from the U.S. Department of Health and Human Services.

States Set to Use Stimulus Funds

By Mikel Chavers, CSG Associate Editor

Show Missouri the money.

The day President Barack Obama’s pen hit the paper as he signed the American Recovery and Reinvestment Act into law Feb. 17, the Show Me State pulled the ripcord on a bridge project that would use money from the stimulus.

That bridge project is the first in the nation set to use the federal stimulus funds, according to the Missouri Department of Transportation.

And other state government officials are on a similar track to using stimulus dollars quickly. The American Recovery and Reinvestment Act provides more than $300 billion in potential funding for states and state-related programs.

Missouri was prepared to funnel money from the stimulus for highways and jumpstart a list of waiting projects—the Osage River Bridge was the first project on the list.

Governors Aim for Cooperation on Stimulus Funding

By Kelley Arnold, CSG Membership Outreach

Interbranch cooperation could be a key to states’ successful use of funds from the federal American Recovery and Reinvestment Act.

At least, that’s the way Gov. John Baldacci of Maine and Gov. C.L. “Butch” Otter of Idaho see it. Both governors have issued executive orders meant to foster transparency and cooperation between the executive and legislative branches.

Governors’ offices across the country have seen a flurry of activity as officials strive to make sense of the federal stimulus package. Some have formed working groups, created new departments or appointed czars. The methods each state will use to spend the stimulus funds are as unique as the states themselves. In several instances, these methods have placed the governor’s office at odds with members of the legislature.

Learn How States Are Using Stimulus Money

Want to keep track of how states are planning for and using the stimulus money in the American Recovery and Reinvestment Act? You'll want to bookmark STATERECOVERY.org, a service of The Council of State Governments to help states work through the $787 billion package.

States are dealing with an unprecedented economic crisis and will be using the federal spending initiative in part to bolster state budgets.

STATERECOVERY.org will provide states with a comprehensive overview of the federal legislation as well as ongoing updates and analysis of how states are preparing to implement this historic legislation. The Web site will provide critical information for key policymakers at the state, local, tribal, territorial and federal government levels for determining funding eligibility and ensuring effective implementation.

The Council of State Governments has partnered with the notable firm Latham & Watkins, LLP in the development of The American Recovery and Reinvestment Act of 2009: A Guide for State and Local Governments, a user-friendly tool to help states determine their funding eligibility under the economic recovery act.  The new Web site also includes the results of a nationwide survey on how individual states and territories are preparing to respond to the economic package.

CSG WASHINGTON UPDATE: Stimulus Vote Expected, States Need to be Ready to Act

By Chris Whatley, CSG Washington, D.C., office director

It has come down to three votes.

With Massachusetts Sen. Ted Kennedy out of town and the Minnesota Senate race between Norm Coleman and Al Franken in limbo, passage of the largest spending bill in the history of the United States requires the support of at least three Republican senators in order to move forward. Nevada Sen. Harry Reid has abandoned his goal of securing 80 votes for the package and appears committed to holding a vote later today if the three senators, and their moderate Democrat counterparts, can be brought on board.

Moderate Republicans have joined with several moderate Democrats (including former CSG President Nebraska Sen. Ben Nelson) to form the so called “Gang of 18” which is working to develop a floor amendment to trim more than $100 billion from the economic recovery package.  These cuts will likely include substantial reductions in the estimated $112 billion in flexible state fiscal relief included in the bill. If the moderates can reach agreement on spending cuts the bill could squeak through with the 60 votes needed to overcome the threat of a filibuster sometime later today.

Stimulus Package to Help Medicaid Programs

The $825 billion economic recovery package presented by House Democrats includes $88 billion to increase the federal share of states’ Medicaid costs.

States would receive a bump of 4.9 percent in their federal matching rate for nine quarters, retroactive to October 2008. In addition, states could receive an additional increase in federal funds if they experience significant increases in unemployment rates.

In order to qualify for the increased Medicaid funds, states must not restrict Medicaid eligibility levels above those in place July 1, 2008. Restrictions prohibited include income eligibility or changes that make it more difficult for individuals to meet procedural requirements for enrollment or renewal.

The Center on Budget and Policy Priorities has released a preliminary analysis of the increases each state could expect in state fiscal years 2009, 2010 and 2011.  In addition, check out a comparison between House and Senate versions of the plan.