CNMI gets least ARRA money among US states, territories

A review of federal tracking agency recovery.gov data shows that the CNMI received the least amount-$119 million-of American Recovery and Reinvestment Act money among 50 U.S. states and five U.S. territories from Feb. 17, 2009 through Sept. 30, 2011.

U.S. territories receive much less in ARRA money than the 50 U.S. states whose ARRA awards range from over $662 million in Wyoming to over $34 billion in California.

And of the total $119 million in ARRA money awarded to the CNMI so far, $42 million or 35 percent has yet to be spent.

Recovery.gov updated its data for the CNMI on Nov. 30.

Most or over $48 million of ARRA money awarded to the CNMI as of Sept. 30 went to education, followed by energy/environment at over $38 million, transportation at over $15 million, over $3 million for infrastructure.

The rest went to family, public safety, science, housing, job training and health programs and services in the CNMI, whose government budget for fiscal year 2012, for example, is only $102 million.

Other territories

American Samoa has so far been awarded over $208 million in ARRA money, followed by Guam with over $285 million, the U.S. Virgin Islands with over $289 million, and Puerto Rico with over $2.65 billion.

But while the CNMI’s $42 million of yet-to-be-spent amount is a lot of money, it fares better than three U.S. territories when it comes to the percentage of ARRA-awarded money spent so far.

Guam, for example, has yet to spend 40 percent of ARRA money awarded to it, compared to the CNMI’s only 35 percent.

American Samoa also has yet to spend 71 percent of ARRA money awarded to it, while the U.S. Virgin Islands has yet to spend 48 percent.

Puerto Rico has the least amount of awarded ARRA money that has yet to be spent-at 27 percent.

Three other non-state and non-territorial areas but are affiliated with the United States also received ARRA money.

They include Palau which was awarded over $2 million in ARRA money, of which $790,451 has yet to be spent. The Marshall Islands was also awarded over $1.4 million, but has yet to spend over $1.3 million of that amount. The Federated States of Micronesia was also awarded $444,656, but has yet to spend $100,405 of that amount.

CNMI projects

In the CNMI, ARRA money has been used to keep teachers in public schools, buy and install energy-efficient lights and air-conditioning units, upgrade power and water equipment, and improve generally all public services from education to health and safety.

Of 59 ARRA-funded projects in the CNMI, 15 were completed, 24 were more than 50 percent completed, 17 were less than 50 percent completed, and three not started yet.

From July to September 2011, ARRA created or preserved 442 jobs in the CNMI, mostly in the Public School System.

Fred Camacho, communications/compliance director for Integrated Professional Solutions LLC, said yesterday it is important to keep in mind that the over $119 million in ARRA funds awarded represent amounts awarded to the central government directly and those applied for and received by autonomous agencies.

He cited as examples of significant autonomous agency awards the $8 million awarded to IT&E and some $28 million to Sandy Beach Homes Project.

The CNMI central government received approximately $88 million in direct awards to various agencies, he said.

“As of this past reporting period, the central government has expended approximately $61 million or 69 percent of these funds. This figure is expected to rise again in the 4th quarter reporting period starting in January as the SFSF grant and grants from DCCA are slated to be closed out,” Camacho told Saipan Tribune.

SFSF stands for State Fiscal Stabilization Fund, while DCCA stands for Department of Community and Cultural Affairs.

He said as for the autonomous agency awards, IPS has no direct control over those funds and cannot comment on their expenditures.

IPS bagged a 392,406 sole-source contract from the Fitial administration in October 2010 to manage CNMI ARRA services. The IPS contract will end in April 2012.

Camacho said they do not expect to receive any further ARRA funds beyond the respective close-out dates for each grant.

“Currently, the only grant that runs through 2013 is the Division of Energy’s Energy Efficiency and Conservation Block Grant,” he said.

Delegate Gregorio Kilili C. Sablan (Ind-MP) has been critical of the delayed spending of ARRA money already awarded to the CNMI. He had said that the money still to be spent will help the CNMI weather the recession and keep people employed for several more years.

The most recent ARRA-funded contract awarded, posted on the CNMI ARRA Office website, are still those awarded to AMX International for $43,230 for a CNMI government financial management system upgrade.

Central government

Based on the CNMI ARRA website data, the CNMI central government has been awarded over $88 million in ARRA money as of the third quarter 2011 or from July to September this year.

Of this amount, $61 million or 69 percent has been spent. It has yet to spend $27 million or 31 percent.

ARRA money awarded directly to the CNMI central government is divided among 11 agencies.

Of the total $88 million awarded to the central government, over $44 million went to the Office of the Governor; over $29 million to the Division of Energy; $4.5 million to the Department of Public Works; over $2.7 to DCCA; and over $1.8 million to the Criminal Justice Planning Agency.

Over $1.39 million was awarded to the Division of Environmental Quality; over $1.3 million to the Workforce Investment Agency; over $1.2 million to the Department of Commerce; over $1.08 million to the Department of Public Health; $519,048 to the Department of Public Safety; and $270,196 to the Office of Vocational Rehabilitation.

Autonomous agencies, non-profit groups

The CNMI ARRA website also shows a total of almost $14.5 million awarded to five autonomous agencies.

These include $5 million to the Commonwealth Ports Authority; over $3.3 million to the Public School System; over $3.2 million to the Commonwealth Utilities Corp.; over $1.9 million to the Northern Marianas Housing Corp.; and $914,493 to the Northern Marianas College.

Non-profit organizations in the CNMI also received a total of $228,675 in ARRA money.

These include the Center for Living Independently with $106,200; the Coalition Against Domestic and Sexual Violence with $78,125; and Karidat with $44,350.

The ARRA law, signed by President Barack Obama in 2009, seeks to create and save jobs; spur economic activity and invest in long-term growth by providing $288 billion in tax cuts and benefits, $224 billion to increase funding for entitlement programs and $275 in contract, grant, and loan awards; and foster unprecedented levels of accountability and transparency in ARRA money spending.