The American Recovery and Reinvestment Act became law on February 17, 2009. Congress and President Obama have decided to commit $787 billion in spending and tax relief in hopes of stimulating the economy and creating jobs. Governor Daniels has made clear his priorities in carefully using Indiana's portion:  jobs and speed.

Much of that money will flow through state governments. Across America, states are in deep financial trouble; Indiana’s situation is different, at least for now. Our budget is balanced and we have maintained critical services that other states have cut. The exact amount Indiana will receive is unknown, but Hoosiers can expect approximately $4.3 billion in increases in existing federal programs. More funds will be available through competitive grant funds, which we will aggressively pursue.

Governor Daniels has already taken action to utilize stimulus funds in the smartest and fastest ways possible. Before the federal package was signed into law, Indiana had identified ‘shovel ready’ highway and clean water projects throughout the state. These projects will put more Hoosiers to work. Indiana was among the first states to certify its participation with the U.S. Department of Labor to provide an additional $25 weekly to Hoosiers eligible for unemployment insurance.

The federal government has established a website, http://www.recovery.gov/, to provide transparency and accountability for the American Recovery and Reinvestment Act.  This Indiana Web site, INvest.in.gov, will accomplish the same goal for Hoosiers. It will help Hoosiers know how stimulus funds will be distributed in Indiana and what kinds of projects and programs are eligible for the funds. It also will be used to connect Hoosiers to other resources and provide more information about funds as it becomes available.

Much of the federal stimulus package funding that will come to Indiana will be distributed via formula-based funding. A formula distribution means that allocations will be made to certain recipients through existing formulas in use by the federal government.

According to current information, Indiana expects to receive about $4.3 billion in formula funding. Here are categories with the largest amounts of projected funding:

• Medicaid:  $1.4 billion
• Education:  $1.3 billion
• Roads and Bridges:  $650 million
• Nutrition:  $400 million
• Weatherization:   $100 million
• Water Quality:  $100 million
• Housing:  $100 million
• Public Transit:  $80 million
• Energy:  $70 million
• Employment Services:  $70 million
• Child Care:  $40 million
• Justice:  $40 million

Some of the funding will flow directly to local units of government, organizations or programs for their use.  The State of Indiana plays no role in the distribution of those funds and there is no system for states to track them.  Dollars flowing directly from the federal government to local units are not included in these figures.

Education, Medicaid

Funding distribution for Indiana will be overseen by the Office of Management and Budget and, respectively, the Department of Education and Family and Social Services Administration.

Energy Conservation and Weatherization

Through the American Recovery and Reinvestment Act of 2009 (ARRA), the state of Indiana will receive $131.8 million in stimulus funding for energy conservation and weatherization efforts.  The IHCDA is seeking qualified and responsive proposals from non-profit organizations and local units of government willing and able to administer the Low Income Weatherization Assistance Program to families under 200% of Federal Poverty Guidelines.  Services include but are not limited to determining client eligibility, conducting client intake, performing audit services, weatherizing dwellings, and managing data entry. The contract term will be from May 1, 2009 through March 31, 2010.

Highway Infrastructure

The Indiana Department of Transportation (INDOT) will oversee formula driven funds dedicated to transportation projects including highways, bridges and transit capital such as rail and airport projects.  Visit the INvest.in.gov Highways, Bridges & Transit page for more information: http://in.gov/governorhistory/mitchdaniels/2991.htm

Water Infrastructure

The Indiana Finance Authority, through the State Revolving Fund (SRF), will oversee the distribution of $94,447,485 to fund wastewater infrastructure projects and $27,212,000 to fund drinking water infrastructure projects. For more information, visit the SRF Program’s stimulus information page at:  http://www.in.gov/ifa/arra.htm.

Other formula funding

State agencies will implement other funding provided by the American Recovery and Reinvestment Act, such as weatherization and energy categories noted above. Governor Daniels has convened a committee to ensure that all federal stimulus funds spent in Indiana are used effectively. Preference will be given to opportunities that create jobs now and leave permanent assets. This group is chaired by Lieutenant Governor Becky Skillman and includes representation from the Governor’s Office, the Office of Management and Budget, and the Indiana Economic Development Corporation.