Economic Stimulus

April 30, 2010

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The American Recovery and Reinvestment Act of 2009 (ARRA) was passed by Congress and signed into law by President Obama on February 17, 2009. The purpose of ARRA is to stimulate the economy by spending money on programs that benefit the community and create or retain jobs. The $787 billion act includes $288 billion in tax cuts, $144 billion in fiscal relief for states, $730 million in support of small businesses, and $355 billion in investments for infrastructure, science, health care, training, energy, education, and protection of vulnerable populations.

How do Recovery Funds benefit the people of Multnomah County?

Recovery Funds allow Multnomah County to serve citizens by creating and retaining jobs. So far, it is estimated that the investments will create or retain 61 jobs in Multnomah County—for example, 18 newly hired health care professionals that are providing care for up to 5,500 new patients as a result of economic stimulus funds. The number of new or retained jobs is estimated to increase to about 160 over the lifespan of the grants.

Another important area that has received stimulus funds is the weatherization program. Home weatherization is good for individuals, families, the economy and the planet. These funds will have a triple bottom line impact—they will create living-wage green jobs for the weatherization installers and inspectors; they will cut families' household utility bills; and they will reduce carbon emissions.

There are also six retained or new positions between the District Attorney, Sheriff and Community Justice Offices that serve to combat gangs, domestic violence, child abuse and prostitution.

Multnomah County is committed to awarding contracts and starting projects in an expedited manner, and to reaching out to women, minority-owned, and emerging small businesses. Soon-to-start projects include: health clinic renovations, sidewalk improvements, an asphalt road overlay in rural East County and a sewer project in Fairview. Get more information about contracting opportunities and the CPCA.

Keeping track of the Economic stimulus: County Coordinator Madeleine Mader informally shares funding updates as they come in.

How much money has Multnomah County received?

As of March 23, 2010, Multnomah County was awarded $22.5 million. Project areas currently funded include: health, residential weatherization, road improvements, a sewer project, diesel emission reductions, and public safety. An estimated sixty-one jobs will be created or retained and many more are anticipated as grants continue to be awarded and projects begin. More information about the impact of the grants on jobs is available in these first reports.

How are the funds distributed?

Multnomah County receives funds two ways: though formula allocations that increase existing federally-funded programs, and through competitive grants. The federal government allocates funds to the state of Oregon, which can pass them on to cities, counties, businesses and non-profit organizations.

How will funds be accounted for?

A federal website exists to ensure that the economic stimulus is carried out with transparency and accountability. The state of Oregon also has a website to keep tabs on ARRA projects in Oregon. Recipients of funds must report quarterly on the total amount of funds received, how they were spent and their impact.

What competitive grants did the County apply for?

County Departments and Offices have applied for, or are considering applying for, competitive grants totaling $17.5 million. Areas include health, domestic violence, electric vehicles, energy efficiency, and public safety. Some proposals have been developed in collaboration with the City of Portland and private and non-profit partners. Award announcements are expected on an on-going basis.

How likely is it that the County will win competitive grants?

Competition for grants is extremely high. For example, the Oregon Department of Energy received 1,200 applications, which totaled $2.5 billion, for a fund that only has $42 million. Federal and State agencies announce new competitive grant opportunities daily, though few are relevant to the County. Two grant applications have been denied.

Department staff are constantly watching for grant criteria releases, taking an aggressive approach in applying for funds, and weighing the long-term impact and sustainability of what are essentially one-time-only funds.

How will the impact on jobs be calculated?

Jobs retained or created are positions that were maintained or created as a direct result of Recovery Act funds. The jobs are expressed as FTE (Full-Time Equivalency). Each quarter, grant recipients count the total number of hours their employees worked as a direct result of ARRA funding. This total is divided by 520 hours to get the total FTE for the quarter. In subsequent quarters, the calculation is cumulative—each quarter's hours are added to the prior quarter and then divided by the cumulative number of hours. This method avoids double counting part-time or temporary jobs. Read about the President's Council of Economic Advisors forecasting methodology.

What happens when the funds go away in two years?

Department leaders and staff carefully weigh the long-term impact and sustainability of what are essentially one-time-only funds before applying for grants.

Some projects, such as renovations and weatherization, do not depend on continued funding. Once a home has been weatherized for greater energy efficiency, the resident will benefit from lower utility bills in the long-term. 

Do the stimulus funds have many reporting requirements?

There are additional reporting guidelines unique to stimulus funds that require recipients to report how much money is received, the projects on which it was spent, the vendors hired to carry out work, and the jobs created or retained. Reporting on jobs and vendors is new and unique to Recovery Act funds. This information is available from Recovery.gov.

What is the purpose of the economic stimulus?

The purpose of the economic stimulus is:

• To preserve and create jobs and promote economic recovery.
• To assist people most impacted by the recession.
• To spur advances in science and health that increase economic efficiency.
• To invest in transportation, environmental protection, and infrastructure that provides long-term economic benefits.
• To stabilize state and local government budgets.

Grant Funds Received: $22.5 Million

As of March 23, 2010, Multnomah County has been awarded $22.5 million in economic recovery grants. This investment will create an estimated 61 jobs and is expected to create as many as 160 jobs over the lifespan of the grants. The Federal government publishes all ARRA results on Recovery.gov for each quarter.

Communities Putting Prevention to Work: $7.5 million 

Purpose: Boost public health initiatives to improve nutrition, fight obesity, encourage physical activity, and decrease smoking. Support healthy schools by hiring School Wellness Policy Coordinators in seven school districts. Increase access to nutritious and affordable food in Gresham and Portland. Promote overall healthy living in everyday settings, including senior centers, work sites, neighborhoods, health care and faith-based locations. Funded by: U.S. Department of Health and Human Services.

Weatherization Energy Efficiency: $4.8 million

Purpose: Expand the County’s residential home weatherization program, helping to reduce utilities costs, create jobs, and reduce energy consumption.

Capital improvements at health clinics: $2.3 million

Purpose: Upgrade facilities at seven health clinics to improve workflow, accessibility and service and provide equipment for community health centers. Funded by: U.S. Department of Health and Human Services.

Employment support services: $1.3 million

Purpose: Provide employment services and job-related training for people hit hardest by the recession. Funded by: U.S. Department of Health and Human Services.

Increase access to health services: $854,000

Purpose: Add medical teams at La Clinica, Mid-County and East County Health Centers to serve an additional 5,500 patients. Funded by: U.S. Department of Health and Human Services.

Road and transportation safety: $1.39 million

Purpose: Construct sidewalks from 238th Ave. to 244th Ave. on Halsey Street in Wood Village. Construct sidewalks on Stark Street from 257th Ave. to Troutdale Road in Troutdale. Implement Federal Road Safety Audit recommendations through improved signing and striping; addition of rumble strips, radar speed signs, advance warning signal, and guardrail improvements on Cornelius Pass Road. Install new two-inch asphalt overlay on 282nd Ave. in rural East County. Funded by: Oregon Department of Transportation.

Repair sewer in the City of Fairview: $81,318

Funded by: U.S. Department of Housing and Urban Development.

Reduce diesel emissions: $178,000

Purpose: Retrofit diesel engine to reduce emissions of particulate matter. Funded by: EPA/DEQ.

Nutritional services for seniors: $224,150

Purpose: Provide meals to elderly residents living on a very low income.

Public Safety: $1.59 million

Purpose: Combat gang violence, child abuse, domestic violence and prostitution through programs in the Sheriff, District Attorney and Community Justice offices.

Building Automation Systems: $990,000

Purpose: Expand or upgrade Direct Digital Controls (DDC) to remotely monitor, control and troubleshoot mechanical and electrical systems in 35 County-owned buildings, such as public libraries, health clinics and offices. Reduce energy costs through lighting occupancy sensors, heating upgrades, and remote access control screens. Provide reporting capability for virtual energy audit on demand. Funded by: Oregon Department of Energy, State Energy Program.

Heat Recovery Systems: $375,000

Purpose: Recover heat from the Multnomah County Inverness Jail Laundry’s washers and dryers and use it to pre-heat incoming water. Capture and reuse wastewater and dryer air exhaust. Increase lighting efficiencies by replacing older lamps, ballasts, fixtures and upgrading building automation systems. The Inverness Jail currently has the second-largest utility cost per square foot of any County-owned building. This project is expected to reduce natural gas costs by 50 percent and reduce carbon emissions by 425,000 lbs. per year. Funded by: Oregon Department of Energy, State Energy Program.

Sexual Offender Registration: $248,642

Purpose: Enhance investigation, prosecution, post-conviction supervision, and community outreach and education for sex offenders who fail to register or maintain the currency of their registration. Special emphasis will be placed on homeless sex offenders. Funded by: Department of Justice.

Domestic Violence: Overcoming Barriers to Independence and Safety: $499,302

Purpose: Provide transitional housing, job training, career guidance, local employment opportunities and social service support to 40 survivors of domestic violence and their families. Funded by: Department of Justice, Office of Violence Against Women.

Victim Assistance: $30,750

Purpose: Support crime victims from underserved populations, such as Spanish speaking survivors of domestic violence and sexual assault. Funded by: Oregon Department of Justice, Crime Victims' Services Division.