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American Recovery and Reinvestment (ARRA) Update


It has recently come to NCIL’s attention that the federal Title VII Part C distribution percentages to existing Centers for Independent Living (CILs) may change once the American Recovery and Reinvestment Act (ARRA) funding ends.

Awards for ARRA may not be issued until January 2010 or later. Each state must declare estimates of ARRA expenditures and the duration of the awards to RSA. The due dates for these estimates are on a state-by-state basis. CIL awards will be based upon the information that the state submits and upon the federal fiscal year, except in the first year (2010). If the awards are not issued until January, CILs will only have until September 30th 2010 to expend funding for the first year. CILs will only be able to draw down the estimated annual budget amounts submitted by your state.

Many states are not aware that the distribution of Part C ARRA funding may alter the overall proportional distribution of Part C funds Post-ARRA.

Example of how Part C funds could be altered by ARRA funds and their conclusion:

An existing Part C-funded Center receives 23% of the total federal IL funds awarded to the state before ARRA funding begins. Then, after the distribution formula changes to account for the ARRA funding, as suggested by the state, the combined total of the ARRA and Part C funds the CIL will receive equals 19% of the state distribution. This could happen because of a variety of reasons, including new Center(s) in a state that decrease the share of other Centers, or because the ARRA funds might go to a particular CIL to bring their funding level closer to a baseline. Regardless of the reason for the change in distribution percentage to the CIL in this example, that percentage will not revert back to 23% once the ARRA funds end, so a CIL will only get 19% of the Part C funds distributed in the state in post-ARRA years. This distribution scenario is possible even if your state does not start new CILs! In NCIL’s communication with some SILCs and CILs, this fact was not made clear by RSA. To find out what the distribution changes will be for CILs in a particular state, SILCs and CILs should request a chart that reflects the distribution of Part C funds during AND after the ARRA funding, so that all parties understand the impact of changes made to the distribution percentages.

What to Do: Contact David Esquith, RSA’s Director of State Monitoring and Program Improvement Division and request a chart that reflects the distribution of Part C funds, during the distribution of ARRA funds and after the ARRA funds cease. This will allow you to see how each Center will be impacted by the new distribution formula. David can be reached by calling: 202-245-7336.

Next: Once you receive the chart from RSA, please send an electronic copy to NCIL Policy Analyst, Jason Beloungy. NCIL is collecting these charts to keep track of how each state and its Centers are being affected by ARRA funds, both now and once the funds cease. This will help NCIL’s advocacy efforts with Congress and the Obama Administration regarding Part C funding. Jason can be e-mailed at: jason@ncil.org

Please be sure to take this new information into account when planning for the distribution of ARRA funding.

If you need further information, please feel free to contact Kelly Buckland or Jason Beloungy in the NCIL office at 202-207-0334 or kelly@ncil.org and Jason@ncil.org, Maureen Ryan at moryan@charter.net or Jeff Hughes at jlhughes@progind.org.



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