Stimulus may send money to schools

Wednesday, Feb. 4, 2009

The House majority leader told Southern Maryland officials about the bill's local impact in a press conference Friday at the new Calvert Middle School construction site in Prince Frederick, which is a project that could receive funding from the bill.

The legislation would direct more than $800 billion to states for infrastructure, construction and education. The bill passed in the House of Representatives last week 244-188, but without any Republican support. The Senate is expected to vote this week. The bill combines government investment and tax relief for families in a bid to create jobs and spur economic growth.

School construction, modernization, Title I and Individuals with Disabilities Education Act money are a major component of the bill, with $294 million budgeted for Maryland schools. The bill also includes $3.5 billion for Maryland general fiscal relief, job training, education, social service,and justice programs and $782 million for highway and bridge modernization, transit and to support clean water infrastructure.

Funds for local school systems would come at a time when Gov. Martin O'Malley (D) has slashed money for them. St. Mary's public schools expects $2.5 million less in fiscal 2010 from the state than this year.

"Communities across our state and our nation are suffering," Hoyer said. "And, with a declining tax base and a state that is confronting a $2 billion shortfall, restricting government's ability to provide critical services and fund programs, [puts] localities in an increasingly difficult position. This month, I think, will go down in our history as a turning point for our nation."

St. Mary's would receive $2,335,500 over the next two years specifically for school modernization and construction. Calvert County would receive $1,227,100 and Charles County $2,809,000.

St. Mary's would get an additional $1.6 million in Title One funding for schools serving disabled and poor students. Calvert would receive $760,000 and Charles would get $1.7 million.

The bill could change in the Senate and none of the funds have been officially committed to any projects.

"Collectively, my biggest concern is that we don't backslide in terms of any of services to ensure we sustain academic achievement in the future," said Michael Martirano, superintendent for St. Mary's public schools. "The stimulus dollars will help prevent further cuts in services."

Martirano noted funds would be directed to fully funding "shovel-ready projects" such as the renovation of Leonardtown Middle School and renovating the heating and air-conditioning system at Greenview Knolls Elementary School.

A breakdown of programs by county other than for education is not available, said Stephanie Lundberg, a Hoyer spokeswoman, because distribution methods vary by program.

"Some programs flow through states with a state formula distributing funds among localities, like the education funding; other programs flow through states with a grant process for localities, other programs go directly to localities by formula, others go to localities through federal grants," she said. "Local governments will get funds … through the same process they do normally. The only difference is that we are placing more accountability and transparency on state governments on how they distribute the money that flows through the state, with directives to distribute it quickly."

The funds could also be used to support infrastructure projects that haven't already gone through a review process or aren't priority initiatives, but states must give preference to projects — and obligate 50 percent of total funds — that can be awarded contracts within 120 days and are on the state's radar. Some of the transit funds will be distributed directly to localities.

Hoyer assured officials the allocations were not earmarks and were based on a specific formula.

Even with the passage of the proposed package, unemployment rates are expected to rise to between 8 and 9 percent this year, but without it, could rise to nearly 12 percent, according to a House Appropriations Committee summary of the bill.

In December, Maryland lost 9,800 jobs and Maryland's unemployment rate reached its highest level in more than 15 years at 5.8 percent, according to the U.S. Bureau of Labor Statistics. Hoyer said the stimulus package is expected to create or save 99,000 jobs in the state.

Supporters of the legislation, including Hoyer, said transparency and accountability of funds allocated through the bill is unprecedented. Obama (D) announced in a YouTube address last week that he will create a Web site to track money at www.recovery.gov.

kkulp@somdnews.com