A: The American Recovery and Reinvestment Act (ARRA) became law on February 17, 2009. Congress and President Obama have decided to commit $787 billion in spending and tax relief in hopes of stimulating the economy and creating jobs. Much of that money will flow through state and territorial governments.

 

 

 

A: Although the precise amount American Samoa will receive is unknown, it is estimated that American Samoa will receive upwards of $160 million or more in ARRA funds. The Territory could receive millions in federal competitive grant awards for renewable energy, technology, broadband, education reform, roads and other infrastructure. Also, American Samoa will receive tens of millions in tax relief and additional bond and loan authority to assist businesses and public sector projects.

 

 

 

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

The ARRA 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/territorial 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 preliminary estimate of the formula driven portion of American Samoa’s ARRA fund receipts is as follows:

Medicaid and Prescription Drug Program Funding: $2.7 million

Education: $54 million

Transportation: $8.1 million

Nutrition: $1.2 million

Energy: $29.1 million

Water Quality: $3.9 million

Housing, Community Services, and Community Development: $2.6 million

Employment Services: $.73 million

Child Care: $2.6 million

Justice: $4.2 million

Government Services: $8 million

Community Health Centers: $2.5 million

Work Tax Credits: $17.2 million

American Samoa hopes to receive additional competitive grant monies and bond financing as well.

 

 

 

A: Federal agencies are still developing the rules for how the money will be disbursed; Ergo, the exact amounts are subject to change. However, most of the formula grant dollars are for existing programs, so approximate projections can be based on past allocations.

 

 

 

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 American Samoa will come through federally-mandated formulas which include direct payments to individuals, territorial budget deficit reduction, or through programs administered by local public agencies. For example, more than $50 million will flow to public educational institutions to help schools at all levels during the economic downturn.

 

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

 

 

 

A: Twenty-eight federal agencies have been awarded a part of the $787 billion stimulus package. Often, state/territorial 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 public agency by a federal agency. Public agencies then distribute the money based on an approved ARRA plan. The American Samoa Economic Stimulus & Recovery Office (ASESRO) oversees each step by public agencies to ensure that territorial and federal laws are strictly complied with and that procedures previously circulated by the ASESRO are adhered to. This office is responsible for ensuring fairness, prudence, transparency and accountability. These procedures form the basis for future audit and compliance actions.

 

 

 

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

 

 

 

A: Despite the fact that there are still many details regarding the ARRA yet to be worked out, the U. S. Government has made it clear it will demand stringent reporting requirements from funding recipients, including state and territorial governments. All awards, expenditures, contracts, vendors, and other activities and entities funded by ARRA will be posted on the ASESRO website.

 

 

 

A: Infrastructure projects which are “shovel ready” are those that have already been completely designed by architects and engineers, undergone the necessary environmental reviews, and received permits and other necessary government authorizations such that they are ready to be put out for construction bid. Initially, there was a focus on shovel ready projects for infrastructure because the goal was to generate economic activity as swiftly as possible.

 

 

 

A: The ASESRO is responsible for:

Ensuring that the Territory applies and qualifies for every dollar possible through formula grants and direct appropriations

Ensuring that the Territory complies with ARRA requirements

Providing outreach on competitive grant opportunities

Coordinating major applications of Territory-wide importance for competitive grants

Ensuring effective, efficient, and quick use of funds

Avoiding errors, fraud, waste and abuse in the use of ARRA funds

Providing for coordinated federal reporting required by the ARRA

Ensuring transparency and accountability in the expenditure of ARRA funds

 

 

 

A: Governor Togiola Tulafono created the ASESRO by Executive Order 003-2009 on March 6, 2009. Click here to see the executive order establishing the ASESRO.

 

 

 

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

 

The ASESRO has reached out to entities such as the Fono, the High Court of American Samoa, the Attorney General’s Office, the American Samoa Power Authority, the American Samoa Telecommunications Authority, the L.B.J. Tropical Medical Authority, the Territorial Energy Office, internet service providers, trade groups, nonprofit organizations, the American Samoa Community College, the American Samoa Department of Education, Port Administration, the Department of Human & Social Services, the Department of Health, the Development Bank of American Samoa, the Department of Commerce, the Department of Public Works, the Veterans’ Clinic, the commercial banks, and other organizations; and, has accepted numerous speaking engagements and media interviews to spread the word regarding opportunities available under the ARRA.

 

 

 

A: ARRA 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 (RATB). This is in addition to other federal oversight, including the Office of Management and Budget (OMB) and auditors from each federal agency.

 

At the local level, American Samoa already has a rigorous budget, procurement, and payment system in place. Additionally, the ASESRO has been specifically charged by Governor Togiola with the responsibility of addressing full compliance and high performance. To these aims, the ASESRO has several compliance officers charged to help territorial entities augment their federal compliance programs to assure federal stimulus requirements are met.

 

In addition, the ASESRO website allows the general public to report any allegations of suspected fraud, waste or abuse to either the ASESRO or to the federal government.

 

For specific Section 1512 funds, the ARRA requires that for every program funded under this specific section, states and territories 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 saved or created. This reporting effort is coordinated by the ASESRO. These reports are reviewed by each respective federal funding agency and are available via this website.

 

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

 

 

 

A: The bulk of the stimulus package has extremely prescriptive regulations on how it can be spent. Whether money is available for new initiatives depends on the type of program. For example, road and other transportation projects not already in the works are very unlikely to receive funding. New ideas in other areas may be proposed, but applicants shouldn’t set their hopes too high. To learn about a potential project online, please click here. Kindly note that evaluation of these projects is not presently occurring. Only information is being gathered.

 

Small businesses, local governments and other entities may qualify for one of the competitive grant programs funded by the federal stimulus package. Eligibility requirements and application due dates vary. For more information regarding competitive grants, click here. For a list of competitive grant funding opportunities, click here.