i Maine focus on transparency, accountability for stimulus funds
Morning Sentinel
Maine focus on transparency, accountability for stimulus funds
Ryan Low Kennebec Journal & Morning Sentinel 02/19/2009

Maine is caught in a national economic crisis which is affecting every part of our state. Unemployment is climbing, people are losing their homes and consumer confidence has been badly shaken.

On Tuesday, President Obama signed into law the American Recovery and Reinvestment Act of 2009, a new law that will pump hundreds of billions of dollars into the national economy. The goals are straightforward: create jobs, avoid layoffs, invest in education and green energy and make sure that our safety net is sound.

In most cases, the federal government has attached strict criteria to the flow of stimulus dollars to states. There is very little discretion allowed in how the money is spent.

For states, including Maine, the bill will result in major investment in roads and bridges, clean water, energy and education.

While the actual amount of money that will come to Maine is still being sorted out, we know, for example, that the number of Department of Transportation construction projects could double this summer.

Such investments present Maine with a transformative moment, an opportunity to build for the future while at the same time putting people back to work.

But it's important to keep in context that the stimulus plan will not solve all of Maine's problems and won't automatically jolt our economy back to life on its own.

Estimates from the White House suggest the stimulus could create 15,000 jobs in Maine.

Last year, the state lost roughly 15,000 jobs as the national recession worsened and the economy contracted.

The injection of new federal stimulus money into our state's economy will make a significant difference, but it doesn't end our obligation to maintain fiscal discipline, seek out efficiencies at all levels of government and control the growth of state programs to match revenues.

If we make smart choices as a state, we will be positioned for economic recovery and growth.

Gov. John Baldacci on Tuesday signed an executive order naming me as the state coordinator for the federal stimulus law. It is my responsibility to ensure that we appropriately monitor every new dollar coming into the state, track how it is used, determine the number of jobs created and put all the information into a format accessible to everyone.

I will form a team of auditors and accountants who will guarantee that Maine lives up to its obligations under the federal law. That team will make sure that every dollar is spent in accordance with federal criteria and that the entire process is transparent and accountable.

We also will create segregated accounts that will keep new federal dollars from being commingled with other sources of revenue.

It may sound like a boring accounting detail, but such details are crucial to accurately accounting for every new dollar coming into the state.

The federal stimulus plan also comes with a unique dilemma: The purpose of the stimulus is to get money into the economy quickly. For some areas, that means declaring projects within 10 days and breaking ground in as little as 90 days.

But there is also a demand for unprecedented accountability.

Allocations of the new federal money cannot flow through traditional processes. They're too slow.

Nonetheless, Baldacci has made a firm commitment that the Legislature must have an oversight role in any stimulus-related allocations.

Every state department and agency will be required to consult with its committee of jurisdiction before my office will approve any spending plans.

If the committee does not approve of the department or agency stimulus spending, the administration will work with the committee to resolve differences.

It's important that the elected representatives serving in the Legislature be given the opportunity for active participation in this process.

Their oversight will help us make the best uses of new resources coming to the state.

A lot of hopes ride on the federal stimulus law.

I am regularly approached by sincere folks who hope that the stimulus will be the life line that protects their important program, will fund their worthwhile project or will solve a terrible dilemma created by this recession.

Some of those folks might hear the answer they're looking for.

But for many others, the strict criteria and limited flexibility of the federal law offer little prospect for assistance.

The stimulus plan presents a significant opportunity, but it will not answer every prayer.

Maine, like nearly every other state in the country, still will face a long list of hard choices.

Our responsibility is to act prudently and transparently with the new resources we will receive, hold ourselves accountable for our actions and decisions and continue along the path of fiscal restraint that has marked the last six years.

If we do these things, we will see a Maine ready for recovery and success.

Ryan Low, a Winthrop resident, is commissioner of the state Department of Administrative and Financial Services and the state coordinator for implementation of theAmerican Recovery and Reinvestment Act of 2009.

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