Federal funds will be spent locally in a number of ways

By Debbie Raney
Burns Times-Herald

What does the signing of the Federal Stimulus Package mean to Harney County and the rest of the state? Since President Barack Obama signed the package into law on Feb. 17, this has been the main topic of a lot of discussions.

The Association of Oregon Counties (AOC) recently released a breakdown of how the $787 billion spending bill could directly affect the counties of Oregon. According to AOC, the highlights of the funding as they relate to Oregon include:

• Smart energy grid program to modernize the electricity grid to make it more efficient and reliable.

• Helping state and local governments make investments in innovative best practices to achieve greater energy efficiency and reduce energy usage.

• Clean renewable energy bonds for state and local governments.

• $7 billion extending broadband services to underserved communities.

• $87 billion for Medicaid to help states match federal funds and maintain Medicaid programs.

• $53.6 billion State Fiscal Stabilization Fund including $45.6 billion to local school districts, $8 billion to states for high priority needs such as public safety and other critical services.

• Modernizing roads, bridges and public transit — $29 billion for modernizing roads and bridges; requires states to obligate at least half of the highway/bridge funding within 120 days; $8.4 billion for investments in transit and $8 billion for investment in high-speed rail. Includes funds for new construction of commuter and light rail, modernizing existing transit systems and purchasing buses and equipment needed to increase public transportation and improve intermodal and transit facilities.

• Prioritizing clean water/flood control/environmental restoration — $18 billion for clean water, flood control and environmental restoration investments, which will create more than 375,000 jobs.

• Tax incentives for state and local economic development including provision to enhance the marketability for state and local government bonds, which will reduce the costs they incur in financing state and local infrastructure projects.

• In addition to increasing food stamp benefits, provides food assistance, including $100 million for emergency food and shelter to help local community organizations provide food and shelter; $100 million for formula grants to states for elderly nutrition services including Meals on Wheels; and $150 million for Emergency Food Assistance Program to purchase commodities for food banks to refill emptying shelves.

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On  Feb. 18, Oregon Congressman Greg Walden convened a videoconference with United States Forest Service (USFS) Region 6 Supervisor Mary Wagner and Bureau of Land Management (BLM) State Director Ed Shepard, who between them oversee all USFS and BLM forests in Oregon and Washington, to find out how they plan to spend their portion of the $250 million in the economic stimulus for hazardous fuels reduction, forest health protection, rehabilitation and hazard mitigation.

Walden told Wagner and Shepard, “I voted against the so-called stimulus because it never occurred to me in over 21 years of running a small business that you could borrow your way into prosperity. But now that the money has been borrowed, it’s my job to make sure the Second District of Oregon gets its unfair share. We should use those funds to hire commercial contractors to get into the forest and do the environmentally responsible work necessary on the most at-risk lands to reduce the catastrophic fire we see every summer.”

During the meeting Walden laid out the following principles for Supervisor Wagner and Director Shepard to follow:

1. Prioritize hazardous fuels reduction projects in Condition Class II and III lands — the areas where catastrophic wildfire is most likely to originate.

2. Use commercial contractors to put Oregonians back to work in the woods.

3. Use the authorities available in the strongly bipartisan Healthy Forests Restoration Act to do the work in an environmentally responsible way, but also in a way that saves time and precious funding.

4. Undertake essential forest health projects in areas most desperate for work in the woods. According to the regional economist for the Oregon Employment Division, the loss of 200 jobs from mill closures in Eastern Oregon during 2007 had an economic impact comparable to the loss of 26,400 jobs in the Portland metropolitan area.

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Representative Cliff Bentz issued a release to the county commissioners and city mayors throughout District 60, summarizing the estimated grant funding to states for education programs through the State Fiscal Stabilization Fund, included within the Stimulus Act.

According to the report submitted by the Council of State Governments, Oregon would qualify for $567,804,000. A breakdown of the estimated funds includes $99,696,000 to Elementary and Secondary Education Act (ESEA), Title 1-A grants to Local Education Agency (LEAs); $31,602,000 to ESEA, Title 1-A, school improvements; $6,365,000 to ESEA, Title II-D, Education Technology; $1,581,000 to McKinney-Vento, homeless assistance; $128,979,000 to Individuals with Disabilities Education Act (IDEA), Part B; and $3,879,000 to IDEA, Part C.

According to the overview of the State Fiscal Stabilization Fund, the money will be distributed through the Department of Education to prevent teacher layoffs and cutbacks in education and other key services. Any funds not committed by the Governor of a state within two years of receiving such funds, shall be returned to the Department of Education, and these will then be reallocated to the remaining states.