Economic Stimulus Landscape

1. Economic Stimulus Landscape Liza Lowery Massey Senior Fellow Center for Digital Government

2. stim⋅u⋅lus stim⋅u⋅lus stim⋅u⋅lus – n. [stim-yuh-luhs]

3. stim⋅u⋅lus stim⋅u⋅lus Noun and a Verb: Means to an End stim⋅u⋅lus – n. [stim-yuh-luhs] change in the environment acts to arouse action something that triggers a response something that incites to action or exertion or quickens action.... ren⋅o⋅vate – v. [ren-uh-veyt] to restore to good condition; make new or as if new again; repair to reinvigorate; refresh; revive.

4. www.govtech.com/renovationnation

5. Why Renovation? • At 230+ years, there are no green field opportunities. • Brings everything of value forward, makes ready for another season of service. 1776 2009

6. Old School Public Works 1835-1869 1930-1935

7. The Long View It was not our wealth that made our highways possible. It was our highways that made our wealth possible. - Thomas Harris MacDonald, US Bureau of Public Roads, 1953 1950s 1980s

8. The Long View 1960s 1990s ARPANET COMMODITY INTERNET

9. Signs of the Times Work Progress Administration (WPA) 1936National Archives The Flag $787 Billion – If it were a country, it would be the 20th largest economy in the world. The URL American Recovery and Reinvestment Act of 2009recovery.gov Infrastructure Green Tech Health Care National Recovery Administration (NRA) 1933National Archives

10. Crisis is a Terrible Thing to Waste “Only a crisis, real or perceived, produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around.” • Milton Friedman Chicago School free market economist

11. The Idea Lying Around In the January 22 issue, Economist Paul Krugman wrote an open letter to the new president: “As much as possible, you should spend on things of lasting value, things that, like roads and bridges, will make us a richer nation. Upgrade the infrastructure behind the Internet; upgrade the electrical grid; improve information technology in the health care sector, a critical part of any health care." “Provide aid to state and local governments, to prevent them from cutting investment spending at precisely the wrong moment.”

12. Shovel Ready, Funding Worthy? “They're talking about a government that's still a trillion, 500 billion dollars. We ought to then have a smart, trillion, 500 billion dollar government, not a dumb one. “Lincoln built the trans-continental railroads, one of the key factors in the rising Republican majority of his generation. Theodore Roosevelt built the Panama Canal. Eisenhower proposed the interstate highway system as a national defense act…. There are smart things government should do.… “There's a huge jump from the transcontinental railroad president to a pothole presidency. What I've seen so far is a tendency to have relatively tiny projects that have no strategic impact on the country's long-term future.”

13. Digital Recovery • Roads were important. But without cars, insurance, traffic signals, driving schools, civil engineering schools, car and driver registration systems, fuel distribution networks, and parking lots, the benefits would be minimal. • Electrical wires were important. But without electricity generation, standards, appliances and programs to help people use electricity (regulations on utilities, etc.) the benefits would be limited. • Today, wired and wireless networks are important. But without widespread digital take-up and literacy; standards, shared practices and systems (e.g., security, identity resources, etc.); tools (computers, sensors, software) and applications (e.g., e-health, telematics, e-gov, etc.) the benefits will be limited.

14. Inspiration Pragmatism renewal renovation Volunteerism Democratization community philanthropy

15. Priorities Then and Now: Stay True Consensus view of policy makers or state executives and state CIOs in identifying those areas most likely to become a higher priority in the coming biennium.

16. Swapping Out the Plumbing

17. This drawing is to blame for the cloud Homer’s Cloud: Let Somebody Else Do It

18. New Models of Collaboration • Cities of King County WA eCityGov.net • North Central Texas Council of Governments iCommunities • New York Digital Towpath • Newport News, VA (Open eGov) • Service New Brunswick • Free File Alliance • nicusa.com • force.com G2G App Exchange • YouTube • Google Maps • Flickr • twitter • Social Networking (Facebook, myspace, Ning, Nexo, Twango) • Social Platforms (KickApps, Open Social, Socialcast)

19. Co-Creating the Future • 260 data feeds in DC library • 47 apps in 30 days • $20,000 in prize money iLive.at - Doing errands in DC will never be the same. DC Historic Tours -- A walking tour planner, powered by a Google Maps-Flikr-Wikipedia mashup, minimizes steps and maximizes experiencePark It DC -- fighting the constant circling, the unnecessary meter plugging and even expensive tickets that come with finding a parking spot in DC. Where's My Money? DC -- The buck stops at a Facebook Forum on public expenditures, procurement and accountability. DC Crime Finder -- Ripped from the databases, not the headlines -- a customizable look at crime in the neighborhood.Stumble Safely -- Making the streets of DC safe for pub crawls.PointAbout Alerts -- an iPhone app makes crime reports, building permits and other civic  data location-aware in that you see the stuff that is closest to you first We the People Wiki -- An editable Voxpopuli for our Web 2.0 times, embedding the voice (or keystrokes) of the people through an editable, peer-led community reference website based on Washington, D.C. public data. People’s Choice The District's new Car Pool Mashup attracted 22 percent of the 3,320 votes and DC Bikes took another 13 percent.

20. Renovation: Getting to Done

21. The New Federal Spigot “The spigot of … spending that opened on 9/11 is closing ....” • Defense Secretary Robert Gates April 5, 2009

22. The “Stim’ Trio • Sustainability • Expand renewable energy • Double production of alternative energy • Modernize schools and 75% of federal buildings • Green the fleet • Infrastructure • Expand broadband access • Smart Grid (Energy), Transportation • Invest in science, technology and research Health Information Technology (HIT) Standards and adoption incentives for electronic medical records -- $2 billion to invest in health information technology and $17 billion in incentives for Medicare and Medicaid providers.

23. ARRA: Jobs, Stabilization and “Next” • The $787 Billion American Recovery and Reinvestment Act (ARRA) • Preserve and Create jobs • Assist those in need • Advancements in technology and science • Investments in infrastructure, transportation and environment • Stabilize state and local government budgets

24. State and Local’s Share • How Much Money is There? • $280 Billion for State and Local Government • Distributed to state and local governments through grants and direct assistance • $49 Billion to State and Local in FY 2009 • 90% of the FY 2009 funding dedicated to transportation, education and health

25. Mapping the Funds Liza Lowery Massey Senior Fellow Center for Digital Government

26. Courtesy: NSI, 2009

27. Overview of the Stimulus Plan The Stimulus Plan focuses 8 broad streams * In Billions Source: Recovery.gov

28. Slicing $787 Billion Source: White House/ ARRA, 2009

29. Funding Flows

30. Existing Channels/ Partnerships • Administered separately across 15 federal agencies, 215 funding lines and 86 grant programs. • Can be combined in creative ways that demonstrate the whole really is more than the sum of the parts. • That will necessarily include bringing something to the table, including but not limited to local resources and collaboration agreements that reflect that the proposal is a priority to the requesting communities.

31. Existing Contracting Vehicles Source: Center for Digital Government, 2008-2009 • 80% of purchases come through term or convenience contracts • Sell against the ones that you and your partners are on

32. The Bottlenecks • Year 1 Expenditures (after adjusting for tax incentives): ~ $120 Billion. • Stimulus coincides with procurement reform and small business preferences. • Spending must be (a) fast, (b) wise and (c) transparent – pick your bottleneck • Wild Cards: Hoarding, swapping and an a la carte approach

33. Certifiably Stimulative • States have a 45-day window -- until April 3, 2009 -- to certify that they will "request and use" stimulus. • To date, Connecticut, Illinois, Kansas, Massachusetts, Michigan, New Hampshire, Ohio, Oregon, Texas, Virginia, Wisconsin and Wyoming have certified. • Reticence to accept all stimulus funds may stem from bow wave from one time money. • Risk that states will divert, delay and hoard

34. Transparency and Accountability • 16 States Will Receive Bi-Monthly Spending Reviews • U.S. Government Accountability Office (GAO) picked 16 states to monitor spending • Accountability • States are concerned with lack of funding dedicated to accountability and oversight • Decline in staffing hinders capabilities • Differing accounting software may pose difficulties

35. Criminal Justice and the ‘Stim’ Governors can choose to spend 18.2 percent, or $8.8 billion, of their portion of the $53.6 Billion Stabilization Fund allotment on public safety. Other provisions for the benefit of criminal justice and law enforcement: • $1 billion for checked baggage and checkpoint explosives detection machines • $730 million on border and port security • $150 million on public transportation and railroad security • $500 million for wildfire mitigation; • $210 million in firefighter assistance grants for building new facilities or modernizing older ones. • $1 billion to fund 5,500 local police officers through Community Oriented Policing Services (COPS) program • $2 billion in the Edward Byrne Justice Assistance Grants (JAG) program -- 60 percent to the states and 40 percent to local law enforcement efforts. • $225 million in Violence Against Women Act Grants. • $100 million through OJP for grants to assist victims of crime • $225 million for tribal law enforcement assistance • $50 million for the Internet Crimes Against Children Task Forces. • $390 million from OJP for local law enforcement assistance • $125 million targeted for rural areas • $40 million for the Southern border

36. Electronic Health Records Defining “Meaningful Use” • Meaningful use must be demonstrated…but first, it must be defined • Discussions surrounding the definition are ongoing • Definition will determine how HIT is deployed • Industry groups are submitting their definitions which include: • Adopting CCHIT as the certified EHR standard • EHRs being used to e-prescribe • A phased approach to adoption • Connection to a health information exchange (HIE) or alternative connection methods in the short-term while HIE is in development • Interoperability

37. Electronic Health Records State Plans • California, New York have proposed health information technology infrastructure plans • Other states have started their infrastructure plans. • New York • HEAL NY Phase 10 $60 million to improve care for patient-centered medical homes using health information technology • California • Johan Frohlich appointed as Deputy Secretary for Health Information Technology, Health and Human Services

38. Health Information Technology Office of the National Coordinator for Health Information Technology Health IT Standards Committee has been created to recommend, implement specs and certify criteria for the electronic exchange and use of Health Information Technology. $2 billion - Funded through the ONCHIT Decision Makers: Membership of the Health IT Standards Committee Electronics Health Records Incentives for Professionals affiliated with Medicine Advantage Plans To encourage the adoption and meaningful continued uses of electronic health records. Limited to $17 billion distributed in Medicaid Payments. Decision Makers: HHS Secretary

39. Broadband Hearings are being held • $4.7 Billion- Broadband Technology Opportunity Program (BTOP) • $2.5 Billion- Distance Learning and Telemedicine Program • Congress’ priority is to ensure schools, community centers universities, hospitals and public safety personnel have high-speed access • NTIA is currently consulting with states, FCC and RUS • Developing a common application form for both programs

40. Broadband National Telecommunications & Information Administration • $4.7 Billion- Broadband Technology Opportunity Program (BTOP) • Encouraging local government partnerships Challenges • Defining “broadband”, “unserved” and “underserved” • Deciding what applications to fund • Seeking applicants that: • Deliver an affordable service to the greatest population of users in an area • Enhance healthcare, education in an area • Socially/Economically small businesses • Greatest broadband speeds to the greatest areas • Hoping to make broadband available for: • Video conferencing • Smart grids • Health IT • Research and science

41. NTIA: Broadband Timeline • A Notice of Funding Availability (NOFA) will be released in roughly two months detailing: • Application process • Requirements and progress reports • Job creation measurements Funding • Funding in three waves • Early Fall 2009 • Fall/Winter 2009 • Spring 2010

42. Broadband Grant Opportunities Broadband Technology Opportunities Program (TOP) To accelerate broadband deployment in un-served and underserved areas $4.7 billion Competitive Grant Program Decision Maker: National Telecommunications & Information Administration Distance Learning, Telemedicine & Broadband Program To support grants, loans and loan guarantees for broadband infrastructure through the Department’s Rural Utilities Service Broadband Loan Program $2.5 billion in Grants & Loans Decision Maker: Secretary of Agriculture

43. Transportation State Progress • States are planning highway projects • Repairs, restoration construction projects • Projects must be approved by Federal Department of Transportation • Priority given to projects that can be completed in three years • Priority given to economically distressed areas • Few projects have started • According to the GAO, only $6.4 billion of the $26.6 Billion has been obligated

44. Education Technology Opportunities Enhancing Education Through Technology To improve student achievement through use of technology in elementary and secondary schools. $650 million in Formula Grants Decision Maker: Office of Elementary & Secondary Schools Institute Of Education Sciences For statewide data systems that include postsecondary and workforce information $250 million in Discretionary / Competitive Grants Decision Maker: Office of Post Secondary Education IDEA Part C To assist states to maintain and implement a statewide coordinated, multi-disciplinary, interagency system to provide early intervention for infants and families with disabilities. $500 million in Grants to States Decision Maker: Office of Special Education

45. Green Information Technology Facility Infrastructure Investments To provide funding for facility sustainable restoration and modernization associated with maintaining physical structures at Department of Defense post, camps and stations. $4.2 Billion in total to all branches of Service. Federal Building Fund To carry out for the purpose of Federal Building Fund for modernization and repair. $5.5 billion Decision Maker: General Service Administration Department of Homeland Security Headquarters To provide funding, planning, design, construction, site security, information technology infrastructure, fixtures and related cost to consolidate the Department of Homeland Security Headquarters. $200 Million discretionary Decision Maker: Office of Undersecretary for Management

46. What is the Projected Timeline for Funds to be Made Available to States and Localities? 47 About 90% of ARRA funding in FY 2009 will be provided to states and localities in the health, transportation and education programs. In FY 2010 and FY 2011 ARRA funds are targeted towards establishing capabilities to develop and promote long term economic growth including alternative energy and smart grid technology; Health IT; broadband deployment and access; high speed rail; funding for research and development.

47. Deadlines: 2009

48. Deadlines: 2010

49. Urgent Start NTIA begins series of discussions on allocations of its portion of $ 7.2 B in broadband funding Reporting on competitive grants and contracts begins $ 8.4 B Public Transit Funds Home Weatherization Funds Released/ UI Benefits Increase Detailed financial reports go public $ 610 M NIST Research Funds Reporting on use of funds begins Performance Plans become publicly available Block Grant Awards $ 10. 1 B Housing Assistance $ 830 M NOAA Innovation Funds HR 1 signed into law $ 7.9 B for Job Creation $ 155 M Health Center Construction Funds $ 15 B Federal Medical Assistance Percentage (FMAP) funding Reporting on Entitlement Funding Begins FEBRUARY 2009 MARCH 2009 APRIL 2009 MAY 2009

50. The Long Runway • The Office of Management and Budget will issue new guidelines on contracting by September 30, 2009. • “Fair, full and open competition” may attenuate process, heightening importance of existing vehicles to get money moving. • It could take 2 – 4 years to spend the first $787 Billion. There is still time to get aligned….