As the House Chairman of the Legislature’s Joint Committee on Federal Stimulus Oversight, I have been tasked with helping to oversee funds coming to the Commonwealth through the American Recovery and Reinvestment Act (ARRA) and to ensure that the state spends this money wisely and in a timely manner. I work closely with the Administration and other entities to gain information about ARRA spending, and despite some media accounts to the contrary, the Commonwealth has done an excellent job in meeting “use it or lose it” deadlines, allocating funds, and pumping money into programs that have been essential to our economy and well-being during the worst recession this nation has seen since the Great Depression.
Recently, the Federal Government named the Commonwealth one of the Top 10 spending states, ranking the state as high as number 5. Massachusetts has spent nearly 50% of its total ARRA allocation, having already expended $2.7 billion out of a total of $6.05 billion allocated for the 27-month period. The national average for state spending approximates only 22%. Much of the Commonwealth’s spending has gone to fund transportation projects, education, healthcare reimbursements, and health and human services. These funds have helped save important social welfare programs, spark infrastructure development, and prevent layoffs. It has also given cities and towns the opportunity to have highway and infrastructure projects funded that they otherwise would not have had the funds to undertake. Without the federal stimulus dollars, there would have been a necessity for the Commonwealth to make many more painful budget cuts this fiscal year which would have led to thousands of public school teachers, police officers, and firefighters losing their jobs. These funds have allowed people to retain their jobs and keep families afloat during these economic hardships.
Additionally, our unemployment insurance system has been bolstered by federal subsidies, allowing families to continue paying mortgages, bills, and buy necessities for everyday life. Very soon, Congress will be voting whether or not to extend unemployment benefits a second time, which could allow benefits to be extended into 2010. One of the truly hidden success stories of the stimulus is the benefits to the COBRA program, a month-to-month insurance plan for unemployed or uninsured citizens. A state subsidy combined with a federal subsidy made possible by ARRA funds, has allowed laid off persons the opportunity to pay only 7% out-of-pocket for the COBRA program. Without this subsidy, unemployed persons would need to pay 100% out-of-pocket for COBRA, which for a family of four in Massachusetts, could be as much as $1,000 per month while they are out of work and not making an income. This subsidy has been absolutely essential, as the COBRA program allows families to maintain their current doctors and minimizes the amount of disruption in their lives.
The infusion of federal dollars in Massachusetts has been critical as we face the worst fiscal conditions in recent memory. Log on to http://www.recovery.gov to view what the Commonwealth has obtained via grants, contracts, and loans in your local community.
