FY2010 House 1 Budget Recommendation:
Policy Brief
Deval L. Patrick, Governor
Timothy P. Murray, Lt. Governor
In this time of economic downturn the Commonwealth realizes the importance of securing and properly utilizing federal stimulus, grants and all federal funding that the state is eligible to receive. Federal Executive Order 12372 “Intergovernmental Review of Federal Program” encourages states to utilize in a Single Point of Contact (SPOC) for federal funding oversight. In fiscal year 2010 the Commonwealth will join other states by establishing a Single Point of Contact (SPOC) unit. Governor Patrick’s fiscal year 2010 budget establishes a new administrative SPOC unit within the Executive Office for Administration and Finance (ANF) to monitor and track federal assistance to executive agencies. Some of the examples of federal assistance that will be examined include: grants, Federal Medical Assistance Percentages (FMAP) reimbursement, entitlement programs, any economic recovery stimulus funds and other reimbursement. ANF will work with the Comptroller and the Treasurer and Receiver-General to draw down funds in accordance with the Cash Management Improvement Act, which requires that all draws of federal funds must be processed through the Commonwealth's automated central draw process.
The Commonwealth’s SPOC unit will help to address inefficiencies and duplications of effort between state agencies. Currently, over 900 employees throughout the state apply for and administer federal grants. The fiscal year 2009 General Appropriation Act (GAA) included $2.1 billion in federal grants and there is an expectation that grant funding will continue into fiscal year 2010. In the fiscal year 2010, House 1 (H.1) budget federal grants account for $2.3 billion, approximately 7% of the total state budget. Furthermore, the state receives over $7 billion in federal revenues to support the state budget. In addition, the funding coming through the anticipated federal stimulus package will need to be managed very carefully. In order to better track, monitor and spend federal funding, this unit will work collaboratively with grant staff already working in executive agencies to ensure proper use of and compliance with federal funding.
There are varying levels of need to support federal funding within specific departments; for example, the Department of Public Health (approximately $264.8 million in FY10 federal grant funding) may need more support than the Department of Revenue (approximately $232,000 in federal grant funding). Currently, ANF issues an administrative bulletin that describes the process for grant approval. ANF Bulletin number 3 Federal Grant Administration (ANF 3) outlines the process for identifying federal grant funding. However, creating the SPOC unit will give us the resources to more thoroughly review, research and track federal funding streams.
The Commonwealth strives to access all available federal funding for the programs and services that we provide. This includes monitoring available federal grants available and working with agencies on effective application and implementation.
As the Administration works through fiscal challenges, ensuring that grant obligations are understood and properly implemented is critical to avoid audit findings and loss of funding. This includes reviewing match requirements to ensure affordability and compliance with all federal requirements.
Match requirements and the life of a federal grant must be carefully considered to ensure that a program, once developed and accessed by consumers, can be sustained. Funding from any source is accompanied with some uncertainty but as the State and Federal government look for savings, these critical elements must be considered when accessing grants.
The SPOC unit will be funded through fringe benefit charges collected by the comptroller and assigned to reserve item 1599-5050.
Prepared by the Executive Office for Administration and Finance · Rooms 373 & 272 · State House
For more information contact:
Brian Gosselin and Candace Reddy (brian.gosselin@state.ma.us and candace.reddy@state.ma.us)
www.mass.gov/budget/governor