American Recovery and Reinvestment Act

August 2009

The Black Leadership Forum

The Joint Center for Political & Economic Studies

The National Conference of Black Mayors

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 5094%

95%

96%

97%

98%

99%

100%

Months from start of recession

Pa

yro

ll e

mp

loy

me

nt

as

pe

rce

nt

of

pe

ak

Current Recession

1981 Recession

2001 Recession

1990 Recession

38 monthsafter end of

recession

12 monthsafter end of

recession

22 monthsafter end of

recessionMonths to regain lost jobsafter the recession ended:

Payroll Employment After Start of Recession, 1980 to Present

8 Months:Early 90s and

Early 00srecessions end

16 Months:Early 80s

recession ends Current recession is in its18th month

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CBO: June 2, 2009

Purposes of the Act

• Rescue:– Assist those most hurt by the recession– Assist states with fiscal stress

• Recovery:– Preserve and create jobs– Increase economic activity

• Reinvestment:– Support development of new technology to promote

economy– Renew existing infrastructure

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What We Do

1. Get the Money Out2. Get Money Under Contract3. Support Infrastructure Development4. Promote Performance5. Maintain Support

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Distribution of Funds

• Spending: $499 Billion– Discretionary : $308 Billion– Mandatory: $190 Billion

• Tax Relief: $288 Billion• Total: $787 Billion

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Spending

Spending to Date

• Obligations $192 Billion (as of July 24)– Outlays $70 Billion

• Tax Relief $53 Billion (July 31 Est.)• Total $245• Percentage of $787= 31.1%

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Obligations, $192

Tax Relief, $53

Remaining, $542

Definitions

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Important terms:

• Obligations – represents a binding agreement (such as a contract) that will result in

outlays (either immediately or in the future)

• Outlays – occur as the result of

an obligation and are cash

payments which liquidate the

obligation

NOTE: Recovery.gov uses

“Available” and “Paid Out” as

equivalents to “Obligations”

and “Outlays”

From Recovery.gov as of 8/3/09

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

26.6%; 157 days

Days Obligations Taxes

Pace of Spending to Date

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31.1%; $245B

Projected ARRA Outlays and Taxes from Jan 2009 – September 2010

Jan-June 2009 July-Dec 2009 Jan- June 2010 July-Sept 20100

50

100

150

200

250

Outlays Taxes

Dol

lars

in B

illio

ns

NOTE: This model takes as its basis the CBO estimates of both spending and revenues for FY 2009 and FY 2010. Quarterly estimates were developed based on these annual figures. Jan-June 2009 represents actual outlay numbers (published on recovery.gov), and revenue data from the Treasury Department.

Spending Detail

• State Fiscal Relief (Obligations)– Medicaid: $34.0 billion– Education Fiscal Stabilization: $34.3 billion– Highways: $17.2 billion

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Spending Detail: Top Ten Programs

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Grants to States for Medicaid, $34.04

State Fiscal Stabilization Fund, $34.30

Highway Infrastructure Investment, $17.22

Economic Recovery Payments, $13.04 Payments to the

Unemployment Trust Fund, $11.52

Student Financial Assistance, $8.66

Special Education, $6.08

Compensatory Education for the Disadvantaged, $4.95

State and Tribal Assistance Grants, $5.34

Federal Addtl Unemployment Compensation Program, $4.24

Dollars in Billions

Of the $192 billion obligated as of July 24th, almost $138 billion has been obligated to the

top ten programs

Minority Businesses and ARRA

• Administration has issued guidance that encourages the use of small and minority-owned businesses for ARRA contracts consistent with federal rules and regulations.

• Federal direct contracts so far– Total Contracting Dollars Obligated- $7,638,690,901– Small Business Dollars - $1,722,523,264 (22.5%)– 8(a) Dollars - $632,841,891 (8.3%)– SDB Dollars - $786,572,734 (10.3%)– Minority Dollars - $1,025,053,841 (13.4%)

• Includes 8(a) and SDB dollars

13 Source: U.S. Small Business Administration, 8/3/09

MBDA.gov

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Fedbizopps.gov

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Other Resources

• CCR.gov• Grants.gov• SBA.gov/recovery• Fedconnect.net• Agency Recovery websites• State/local Recovery websites• Recovery.gov

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Next Steps

• David Hinson, National Director, Minority Business Development Agency– 202-482-4274 – dhinson@mbda.gov

• Joseph Jordan, Associate Administrator for Government Contracting and Business Development, U.S. Small Business Administration– 202-205-6459– joseph.jordan@sba.gov

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