NEW MEXICO OFFICE OF
RECOVERY &
REINVESTMENT
INFORMATION • STATISTICS • REPORTS

A: New Mexico is expected to receive more than $3.9 billion in direct awards, including millions in federal competitive grant awards for renewable energy, technology, broadband and roads. Also, New Mexico will receive more than $1.1 billion in tax relief and millions in additional bond and loan authority to assist businesses and public sector projects.

A: The funding is intended to save and create jobs, help America's working families weather the economic storm, stimulate economic growth as quickly as possible, and begin making major investments for the future.

The Recovery Act provides funds and other benefits that will:

• Appropriate funds for a wide range of federal programs
• Maintain, increase or extend certain benefits payable under Medicaid, unemployment compensation, and nutrition assistance programs
• Assist with state budget deficits to protect vital public services
• Create a framework for clean, efficient, renewable American energy
• Support science and technology
• Modernize roads, bridges, transit and waterways
• Begin to overhaul education for the 21st Century
• Provide tax cuts
• Provide assistance to workers

A: Congress and the President decided how the vast majority of the money is to be spent when they crafted the law. Thus, the money virtually guaranteed to come to New Mexico will come through federally-mandated formulas which include direct payments to individuals, state budget deficit reduction, or through programs administered by state agencies. For example, nearly $521 million will flow to school districts and charter schools to help schools during the recession.

In addition, other funding is available through a federal competitive bidding process where New Mexicans can compete with others across the country for a wide range of initiatives.

A: Twenty-eight federal agencies have been awarded a part of the $787 billion stimulus package. Often, state agencies must apply in a timely manner to a federal agency for the money they are entitled to. If the application is approved, the money is awarded to a state agency by a federal agency. State agencies then distribute the money based on an approved Recovery Act plan. The New Mexico Office of Recovery and Reinvestment oversees each step by state agencies to ensure that state and federal laws are strictly complied with and that procedures previously circulated by the New Mexico Office of Recovery and Reinvestment are adhered to. This office is responsible for ensuring fairness, transparency and accountability. These procedures form the basis for future audit and compliance actions.

A: Funding was made available to state agencies through existing programs and, thus, to the extent they were able to do so, agencies applied the new Recovery Act funds to an existing backlog of shovel-ready projects previously proposed by local governments and other qualified applicants. Other agencies provided a formula specifying how funds are to be spent, such as unemployment benefits.

A: The New Mexico Office of Recovery and Reinvestment is responsible for:

• Ensuring that the state applies and qualifies for every dollar possible through formula grants and direct appropriations
• Ensuring that the state complies with Recovery Act requirements
• Providing outreach on competitive grant opportunities
• Coordinating major applications of statewide importance for competitive grants
• Ensuring effective, efficient, and quick use of funds
• Avoiding fraud, waste and abuse in the use of Recovery Act funds
• Providing for coordinated federal reporting required by the Recovery Act
• Ensuring transparency and accountability in the expenditure of Recovery Act funds

A: Governor Bill Richardson created the Office by signing Executive Order 2009-013 on April 22, 2009.

A: State agencies were required to address public input and collaboration with local governments and private entities in their strategic plans for how to spend Recovery Act funds. The Recovery Act specifically designates how and where the Recovery Act funds are allocated. Some of these allocations go directly to individuals by federal law. Other allocations subsequently require state legislative appropriations and the legislative process is open to public participation. To the extent that state agencies receive Recovery Act funds to supplement programs they already administer, state agencies have existing procedures required by law that allow or require public input during the evaluation of projects to be funded.

Additionally, while not required by law, the office was part of a 33-county listening tour in the spring of 2009 to gather input from the public and elected officials regarding recommendations for use of Recovery Act funds. The Competitive Grant Advisory Team – with the cooperation and assistance of federal and state agencies – sponsored eight widely publicized open meetings and summits throughout the state, attended by about 2,000 participants and carried live on the Internet, to educate New Mexicans on the opportunities available through the Recovery Act.

The New Mexico Office of Recovery and Reinvestment has reached out to entities such as the Council of Governments, the New Mexico Association of Counties, the New Mexico Municipal League, trade groups, and other organizations; and has accepted many speaking engagements and media interviews to spread the word regarding opportunities available under the Recovery Act.

A: Recovery Act expenditures will be scrutinized as no other federal program ever has been. Congress included extensive provisions for federal oversight, reviews and audits, to be coordinated by a new federal agency: the Recovery Accountability and Transparency Board. This is in addition to other federal oversight, including the Office of Management and Budget and auditors from each federal agency.

At the state level, New Mexico already has a rigorous procurement system in place. Additionally, the New Mexico Office of Recovery and Reinvestment has the responsibility of addressing compliance. To this end, the Office has created an audit and compliance division charged to help state agencies augment their federal compliance programs to assure federal stimulus requirements are met.

In addition, the Office web site allows the general public to report any allegations of suspected fraud, waste or abuse to either the state Office or to the federal government.

For specific Section 1512 funds, the Recovery Act requires that for every program funded under this specific section, states must report to the federal government how much money was received, how much was spent, what the money was used for, how the funds were distributed, and the number of jobs that were funded. This reporting effort is coordinated by the New Mexico Office of Recovery and Reinvestment. These reports are reviewed by each respective federal funding agency and are available via this web site.

Other Recovery Act funds that fall outside of Section 1512 reporting requirements are subject to rigorous reporting as well.