As ARRA winds down, CNMI yet to spend $34M of $119M

With the American Recovery and Reinvestment Act program winding down, the CNMI has yet to spend $35 million of $119 million awarded it as of Dec. 31, 2011, and remains with the least amount received among U.S. states and territories.

Of the total amount awarded, the biggest chunk or $48 million went to education, while the smallest amount of $1.8 million went to health.

Energy/environment received $39 million so far, while transportation got $15 million among 10 types of public needs that received ARRA money along with infrastructure, family, public safety, research and development/science, housing, and job training/unemployment.

Based on the latest data from federal tracking agency recovery.gov, the amount awarded as of Dec. 31 is almost the same amount received in the previous quarter ending Sept. 30. This may be an indication that $119 million is the peak amount that the CNMI will ever receive under the ARRA program.

Recovery.gov updated its data on Jan. 30, showing that the CNMI was awarded $119 million from Feb. 17, 2009, through Dec. 30, 2011.

Of this amount, over $85 million has been spent and $34 million more has yet to be spent or drawn down.

This is because 20 ARRA projects are over 50 percent completed, 14 that are less than 50 percent completed, and three not started at all. Recovery.gov data shows 20 completed projects in the CNMI.

Rep. Ray Yumul (R-Saipan) said yesterday that ARRA funds “helped the CNMI tremendously, there is no doubt about it.”

“As for audit and progress report, I know there are both federal and local agencies that will ensure that it will be done as per ARRA grant requirement,” Yumul told Saipan Tribune.

House floor leader George Camacho (Ind-Saipan) said it is important to know how agencies, especially the Public School System, will be able to cope without any more ARRA money.

“What will happen to PSS? There were lots of teachers hired because of ARRA money, but when ARRA is done, what will happen to those teachers and what would be the impact on students?” Camacho asked.

With the fiscal year 2013 budget being prepared, he said it would be wise to ask agencies about their plans post-ARRA.

U.S. territories receive much less in ARRA money than the 50 U.S. states whose ARRA awards range from $663 million in Wyoming to $33 billion in California.

The CNMI, with a population of 53,883, got the least ARRA money of $119 million, much lower than American Samoa’s $299 million and with a population of 55,519.

Integrated Professional Solutions LLC, which bagged a sole-source contract from the Fitial administration, manages ARRA money awarded to the central government directly. The IPS contract will end in April. The CNMI central government received some $88 million in direct awards to various agencies.

ARRA money managed by IPS is separate from ARRA money applied for and received by autonomous agencies such as an $8 million award to IT&E and some $28 million to Sandy Beach Homes Project.