The federal government hopes to have states and territories spend most of their economic stimulus dollars — at least 70 percent — by September, and local officials told senators Monday they are on their way to making that happen.
The Senate met in Committee of the Whole Monday to get an update on how the territory is using the millions in stimulus funds made available under the federal American Recovery and Reinvestment Act (ARRA), which one senator described as a "godsend" that has helped stave off the financial meltdown that would have been caused by the global economic downturn.
It’s been a year since the ARRA initiative went into effect, making available $400 billion in formula-driven grants and $300 billion in competitive grants for various programs and projects. Of those amounts, the territory has received about $111.6 million in formula-driven grants — with the largest chunks going toward Public Works, ARRA tax credits, V.I. Energy Office programs and the V.I. Housing Authority.
Local organizations and government agencies have also applied for close to $250 million in competitive grant funds and have so far been awarded about $32.8 million, Public Finance Authority head Julito Francis told senators. Francis also serves at the helm of the Office of Economic Opportunity (OEO), the watchdog agency set up by the governor to monitor and track the stimulus funds.
The OEO is currently the driving force behind two major initiatives — a broadband technology project designed to significantly increase internet speed across the territory, and a Port of St. Croix project geared toward redeveloping the island’s south shore into a full-service port. Further, the entity is looking at how it can capitalize on $18 million in qualified school construction bonds made available under the act, which can be used for new school construction or capital improvements to one or more existing schools, Francis said.
He added that discussion between local officials — particularly Public Works Commissioner Darryl Smalls, who is currently overseeing several of Education’s capital projects — on what the bond proceeds would be put toward is still ongoing. Any such bond issue, however, would be subject to legislative approval, Francis said.
Marian Prescod — representing 3P Inc, the Washington, D.C.-based firm tasked with developing the Office’s fund-monitoring and tracking website — said, in just a year, the territory has continued to successfully pursue and spend its economic stimulus dollars, putting it ahead of many other U.S. jurisdictions.
The Labor Department, East End Medical Center, V.I. Housing Authority and Public Works have moved swiftly in getting their respective projects off the ground, with a couple of the agencies even receiving federal commendations, she said.
"We have a long road ahead, and challenging, admittedly," she told senators. "However, our assessment of the recipients’ performance is that they are working to fulfill the terms and conditions of their awards and getting funds into the economy."
Still, there is still a lot of work to be done, Prescod added. All states and territories have "struggled" to meet the government’s requirements for transparency, accountability and "rapid performance" under the act — particularly when some of the funds are slow in coming, she explained.
But the focus, at this point, must be on performance, she said, adding that the OEO is "poised" to go after all available stimulus opportunities and try for "successful" performance on projects.
Present during Monday’s meeting were Sens. Craig W. Barshinger, Carlton "Ital" Dowe, Adlah "Foncie" Donastorg, Louis P. Hill, Neville James, Wayne James, Terrence "Positive" Nelson, Nereida Rivera-O’Reilly, Usie R. Richards, Sammuel Sanes, Patrick Simeon Sprauve and Michael Thurland.
