Q: What is your biggest challenge in understanding the path of stimulus dollars into Colorado?
A: Experience tells us that the risk for fraud and abuse grows when billions of dollars are going out quickly, eligibility requirements are being established or changed, and new programs are being created.
For Colorado, our biggest challenge is understanding the flow of funds because of the broad range of federal funds that are directed to numerous state and local agencies. In addition to long-standing federal programs, the Recovery Act created new programs and greatly expanded others.
Going forward, the challenge will become understanding the impact of the funds spent. Understanding the impact involves assessing job growth and the results of stimulus spending, which are difficult to separate from the results of overall economic conditions and recovery.
Q: Is there one program whose stimulus-dollar management may require more scrutiny than others because of thin risk-management staffing or its supervisory framework?
A: The State Fiscal Stabilization Fund is a program that requires additional scrutiny because it was newly created by the Recovery Act and involves a large amount of funding to the states in a short period of time.
Colorado will receive $760 million over three years that will largely be used to minimize budget reductions in higher education, as well as to fund improvements in K-12 education. In addition, almost $140 million of the funds can be used for public safety or other government services. Colorado is using these funds for the Department of Corrections and other purposes.
Q: Is Colorado state government doing anything unusual in its management of stimulus dollars compared with other states?
A: Colorado has followed similar practices as many other states. Much of the Recovery Act funds have been directed to existing programs, and state agencies are using their existing processes to manage the programs and funds.
To deal with the large influx of Recovery Act funds and short time frames in which to use them, many states have created recovery offices and boards to manage the use of Recovery Act funds, as Colorado has done. Many states also have created recovery websites. Colorado’s website was recognized this past summer as one of the best sites in the country.
Edited for length and clarity by Miles Moffeit
