NSI Stimulus Blog

Recent elections signal importance of 2010

2009-11-06T11:19:00.010-05:00

By Timothy Onoff
President

As the 2009 election season is now behind us and we look to 2010, there are some obvious and not so obvious trends that will serve as indicators for what the following year’s election season may present.

Since the economic downturn over a year ago, government has played an increasingly central role in the economy through the structure of programs, funding, regulation, policy and even the direct involvement in companies and industries. As we watched the recent election results, one of the strongest themes was frustration and fear around the economy. Voters fear our economic future and sent message at the polls.

Tuesday’s election results were not as much about national political parties as they are a clear sign of the voters’ economic fear and dislocation with the recession, concern over government’s role and our place in the world. Exit polls from Tuesday’s elections in both Virginia and New Jersey showed that on average, 87 percent of voters were concerned about the economy and the forecast for the coming year.

Clearly, consumer frustration and lack of trust is growing. This trust between business and citizens has suffered a precipitous drop since the economic crisis in late 2008, causing many citizens to look to government as the safety net. As company executives look to improve their standing with consumers, they also need to consider their role and relationship with government. When it comes to providing services as well as understanding the regulatory and oversight of commerce and industry, executives who run successful companies realize the importance of having a proactive partnership with government.

As we saw from the Tuesday’s Elections, government leaders have their work cut out for them too. As exit polls captured voter frustration and fear, much like the private sector, government must show action and convince voters they can be trusted to get the job done. Moving beyond the economic crisis, government leaders must address their standing with citizens.

The 2009 election was mostly profiled as involving two state gubernatorial races and special elections to fill Congressional seats. It has also included key mayoral races around the country. For certain, the defeat of incumbent, Democratic Governor Jon Corzine, could be seen as a dent to the national Democratic Party as well as the Republican sweep of state offices in Virginia. However they can also be isolated candidate-specific and state specific trends.

On a larger level, there is a more important trend from 2009: voter fear and frustration focused on incumbents. Governing during economic crisis is not popular. As an example, a look at the 2009 mayoral races around the country has shown that several prominent mayors were defeated and many incumbents that won did so at a much tighter margin than prior elections. In New York City, incumbent Republican Mayor Michael Bloomberg spent $90 million; a rate of almost 20 times more than his opponent, to win an election that was much closer because of low turnout and anger toward incumbency.
Next year’s sizeable and significant election will include mid-term races for Congress, Governors, State Legislatures and Attorney Generals. These races will create both an impact on and consideration of the importance of understanding and navigating the intersection of policy, governance and elections.

Next year will continue to be a time of change for government and how leaders do business. We’ll see candidates running on the ability to create opportunities and solve problems. With the initiatives around the stimulus and government’s expanded role, the time for government and business to work together has never been greater. The ability to understand the intersection of policy, governance and electoral issues is even more important.

Want to learn more? Read Tim’s Special Report and Forecast on the 2010 Gubernatorial Elections.

Timothy Onoff is President of NSI and serves as a political mapping expert helping organizations understand how policies and the political landscape impact business. Mr. Onoff has extensive experience developing strategic government marketing campaigns and assisting companies in the leadership and execution of winning government sales programs. Prior to NSI, Mr. Onoff founded and led a consulting firm Assisted Initiatives, that specialized in helping corporations with state and local marketing efforts involving comprehensive legislative, intergovernmental, grassroots communications and issue-advocacy campaigns. He has also served in senior level positions within New York State government.

CEO shares expertise with investor community

2009-10-29T10:13:00.002-04:00

Al Gordon, Chief Executive Officer of National Strategies, LLC (NSI), a nationally recognized business-to-government strategic consulting firm headquartered in Washington, D.C., will address investors and advisors from Pegasus Capital Advisors on Thursday, October 29, 2009 regarding “Real Opportunities at the Crossroads of Business and Government.” Founded in 1995, the Firm currently manages close to $2.0 billion in assets through several private equity funds and has made more than 80 investments since its inception.

Mr. Gordon will share with Pegasus’s investors and advisors how economic recovery initiatives, the Presidential Election, legislative policy and 2010 gubernatorial elections collectively drive business growth opportunities. Additionally, his comments will address the escalating government oversight and spending, and outline how the investment community can engage the public sector market and become strategic partners to help reinvigorate our new economy. Mr. Gordon will provide insight on how executives should direct their resources to be strategic partners with their government counterparts.

“NSI is one of our most exciting portfolio companies. Achieving the growth it has in this economic environment is quite an accomplishment and it is perfectly positioned to benefit from Stimulus Package initiatives going forward,” stated Craig Cogut, Founder and Co-Managing Partner, Pegasus Capital Advisors, L.P. “We invited Al to share his insights on the new political and economic construct that we operate in with investors and the Pegasus team because he acutely understands this dynamic and demonstrates this through the results NSI is generating.”

Prior to establishing NSI in 1995, Mr. Gordon had extensive experience in government and politics in New York State, where he worked as a senior member of former Governor Mario Cuomo’s staff. In this capacity, he oversaw such areas as legislative relations, intergovernmental relations, constituency affairs, and regional services. Mr. Gordon also served for over two years as Chairman of the New York State Democratic Committee. Mr. Gordon currently serves on the Boards of Policy Studies Inc (PSI) and Inmate Health Services (IHS).

Mr. Gordon received his bachelor’s degree in Political Science and History from Clark University and a J.D. from Fordham School of Law.

ARRA remains crucial for renewables

2009-10-20T08:56:00.004-04:00

By Bruce Gruenewald
Director, Energy and Environmental Operations

The Department of Energy recently announced another round of funding from American Recovery and Reinvestment Act to help accelerate the development of conventional renewable energy generation projects.

Such loan guarantees allow access to capital for advanced renewable project development as credit markets continue to struggle and remain crucial for this reason. As part of the latest effort toward that end, the Department of Energy has created the Financial Institution Partnership Program (FIPP), which offers a streamlined set of standards designed to expedite DOE’s loan guarantee underwriting process and leverage private sector expertise and capital for the efficient and prudent funding of eligible projects.

The DOE funding will cover the cost of loan guarantees which could support as much as $4 to 8 billion in lending to eligible projects and invite private sector participation to accelerate the financing of these renewable energy projects. The first solicitation under the new program will seek loan guarantee applications for conventional renewable energy generation projects, such as wind, solar, biomass, geothermal and hydropower.

The department’s Loan Guarantee Program provides a much-needed source of funding to ensure continued investment in renewable technologies in a struggling economy. NSI continues to believe these are crucial elements to get for-profit companies to embark on energy efficiency efforts that will later lead to cost savings but require investment at the outset.

Bruce Gruenewald is the Director, Energy and Environmental Operations for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. Prior to joining NSI, Mr. Gruenewald served as a program manager on several US EPA contracts. He provided technical leadership for the contracts, supervised multi-disciplinary consulting staffs, and managed the business and contractual relationships with the government. He also positioned his employers for new business opportunities in federal, state, and local markets, evaluated potential teaming partners, and wrote proposals and developed pricing and cost strategies in response to RFPs.

A world of revenue-generating renewables?

2009-10-19T11:04:00.010-04:00

By Bruce Gruenewald
Director, Energy & Environmental Operations

University teams from around the world converged on the National Mall in Washington, DC last week to build 20 homes that demonstrated the latest and greatest in solar heat and power.

The efforts were measured in 10 contests, of which half are juried and half are based largely on energy performance, according to the Solar Decathlon Web site. Contests aside, it’s worth noting that all of the homes were designed to generate enough power to meet inhabitants’ energy needs and still have a fair amount left over. The capability highlights a growing trend that turns the concept of zero net power consumption into a potential revenue stream via selling back overflow energy to the grid with the help of net metering technology and creative financial solutions.

I am reminded of one such company NSI recently worked with a client to deliver this concept, where our client devised an energy buyback system that involved issuing bonds for renewable energy technology upgrades and installation and then making loans to homeowners. A special tax district was established so that homeowners could acquire funding through a municipality. The municipality would then apply levies on property taxes for the loan term in order for borrowers to pay for the initial technology investment. This is just one example of the creative financial solutions under development to stimulate the wide-spread adoption of solar technology.

Through the Recovery Act, the federal government is investing heavily in the power infrastructure upgrades needed to facilitate wide-spread adoption of renewable power. As SmartPlanet points out, renewables are being funded via tax credits, stimulus dollars and other programs. Billions have already been doled out for wider smart meter implementation as well as auto battery research and manufacturing. Some $43 billion of stimulus funds have been earmarked for energy projects such as rebuilding the aging grid. Tax credits encourage a quadrupling of wind energy over the next few years.

As a result, NSI has forged many relationships between the renewable technology industry and the government market. And it’s only the beginning. Just a few years ago, the buzz still focused on balancing the merits of renewable energy against the initial capital outlay. But now that making money’s involved on the back end, it’s a whole new world for renewables.

This post originally appeared at GovCon.com. Bruce Gruenewald is the Director, Energy and Environmental Operations for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. Prior to joining NSI, Mr. Gruenewald served as a program manager on several US EPA contracts. He provided technical leadership for the contracts, supervised multi-disciplinary consulting staffs, and managed the business and contractual relationships with the government. He also positioned his employers for new business opportunities in federal, state, and local markets, evaluated potential teaming partners, and wrote proposals and developed pricing and cost strategies in response to RFPs.

EPA meets goal for cleanup work

2009-09-10T15:15:00.002-04:00

By Kevin Matthews
Vice President, Energy and Environment Sector

The Environmental Protection Agency has met its goal to initiate or accelerate cleanup work at 20 contaminated sites in industrial areas hit hardest by the recession and pose unacceptable risks to human health and the environment, according to a recent press release.

It’s an impressive accomplishment for the EPA to meet this target, just two-hundred days after passage of the American Recovery and Reinvestment Act, given the time and amount of work required as well as the complexity involved in the effort. But there’s still a long way to go in order to achieve cleanup of similar sites across the country.

Cleanup of these sites, which are known as the Superfund sites, received $600 million in recovery act funds and, as of day 200, EPA has obligated more than $400 million, according to the press release. The funding will accelerate ongoing cleanup activities or initiate new cleanup activities, boosting local economies by creating and maintaining jobs. EPA Administrator Lisa P. Jackson recorded a video message on how EPA recovery act projects are creating green jobs and cleaner communities across the country.

But while the effort so far deserves recognition and has already created jobs to stimulate the economy, the EPA must continue the commitment to cleanup efforts at a steady pace in order to adequately protect human health and the environment and address the backlog of cleanups around the country.

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison.

Clean Cities investment could be legacy

2009-09-10T09:23:00.005-04:00

By Parris Glendening
Senior Advisor

Nearly $300 million from the American Recovery and Reinvestment Act will pay for 25 cost-share projects to speed the transformation of the nation’s vehicle fleet and displace approximately 38 million gallons of petroleum per year.

The projects, according to a press release, are part of the Clean Cities program and will put more than 9,000 alternative fuel and energy efficient vehicles on the road, and establish 542 refueling locations across the country.

“The Clean Cities program is helping give state and local governments the tools they need to build a greener transportation system that will create new jobs and help to put America on the path to a clean energy future,” Energy Secretary Steven Chu said. “Advancing the number of alternative fuel and advanced technology vehicles on the road will increase our energy security, decrease our dependence on oil, and reduce pollution across the country.”

As most European countries and other parts of the world are already engaged in this type of support program, these projects are a major first step for America to play catch-up with regard to alternative energy and green infrastructure. It’s also a unique opportunity to see long-term impact at the state and local level from ARRA money, most of which will provide crucial short-term economic recovery. This program has the potential for generating the same sort of presidential legacy as Glacier National Park provided Teddy Roosevelt. But it’s the tip of the iceberg. In order for America to compete worldwide, the program needs dramatic expansion.

Under the ARRA, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, according to the press release about the recent projects. The funding will also support refueling infrastructure for various alternative fuel vehicles, including biofuels and natural gas.

Clean Cities is a government-industry partnership that works to reduce America’s petroleum consumption in the transportation sector. The program has established local coalitions across the country that promote the growth of alternative fuels and showcase the potential of advanced and energy efficient vehicles.

Former Maryland Governor Parris Glendening serves as a Senior Advisor for NSI, where he works with the NSI team to develop winning legislative and marketing strategies for NSI’s clients. He spent eight years as Governor of the State of Maryland, (1995-2003) where he made the environment, especially, smart growth-- education and inclusiveness the heart of his legislative, administrative and personal agenda. Mr. Glendening also serves as President of Smart Growth Leadership Institute, part of Smart Growth America, a nation-wide coalition of nearly 100 organizations promoting a better and more healthy way to grow; one that protects open space and farmland, revitalizes neighborhoods, keeps housing affordable, and makes communities more livable.

Dollars go further for airport security

2009-09-03T12:09:00.003-04:00

By Al Gordon
Chief Executive Officer

ARRA funding earmarked for purchasing $1 billion worth of enhanced explosive detection equipment for several airports across the country will apparently stretch much further than anticipated when new travel safety goals were set in motion years ago.

At one time, laws mandating all checked baggage be screened were thought impossible to implement for lack of funding needed for necessary technology. But now, the money will go further than it would have due to price drops spurred by the recession.

The Department of Homeland Security recently announced an additional $240 million in American Recovery and Reinvestment Act funding for new in-line baggage handling systems will go to 10 airports across the country.

More than $3 billion in ARRA money was originally designated for homeland security projects through DHS and the General Services Administration, according to the press release. Of the $1 billion allocated to the Transportation Security Administration for aviation security projects, $700 million is dedicated to screening checked baggage and $300 million is allocated for checkpoint explosive detection technology.

“By managing our Recovery Act funds responsibly, we are able to stretch our resources even further to deploy new security equipment to more airports across the country, said DHS Secretary Janet Napolitano. “These state-of-the-art baggage systems will inject critical resources into local communities while making travel safer.”

According to the press release, the new equipment incorporates enhanced explosive detection technology to provide on-screen viewing capabilities for TSA officers conducting baggage screenings and reduces the number of re-scans and physical bag searches. This will strengthen security efforts while reducing the time necessary to scan baggage while streamlining airport procedures for passengers, making it easier to move through ticketing and boarding.

Alfred Gordon is the chief executive officer of NSI. Prior to establishing NSI in 1995, Mr. Gordon worked as a senior member of former New York State Governor Mario Cuomo’s staff, building upon his extensive background in government and politics. In this capacity, Mr. Gordon oversaw areas, such as legislative relations, intergovernmental relations, constituency affairs and regional services.

Rural water projects get much-needed windfall

2009-08-31T09:57:00.003-04:00

By Kevin Matthews
Vice President, Energy & Environment Sector

The U.S. Department of Agriculture has announced that rural communities in 27 states will receive portions of $175.8 million in stimulus money for projects to help provide safe drinking water and improved wastewater treatment.

Until now, most of the $1.47 billion for water and environmental project loans and grants through the American Recovery and Reinvestment Act have gone toward projects in the country’s urban environments. Water quality and supply issues, however, stretch from deep in the inner-city to flood plains in the middle of the country. Attention to all areas remains crucial for the future of our water quality and supply.

For example, an $8.1 million loan and a $6 million grant will pay for a new, more efficient water treatment plant to replace a nearly 100-year-old plant in Granite Falls, Minnesota. When flooding occurs, the citizens of Granite Falls are often without safe drinking water for weeks because the existing plant is situated on a flood plain. . The new plant will be built away from the flood plain and have the capacity to accommodate water usage now and in the future, when the population grows.

The plans, announced Tuesday, support the Obama administration's goal of rebuilding and revitalizing the nation's rural infrastructure and will provide reliable drinking water and sanitary waste disposal while creating and saving jobs in rural America, according to a press release.
Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.

Recession puts brownfield cleanup in peril

2009-08-25T10:49:00.003-04:00

By Bruce Gruenewald
Director, Energy and Environment Sector

Environmental cleanup could become a big and expensive mess for the Obama administration as double-digit business default rates over the next few years lead to new abandoned hazardous waste sites.

Current regulations allow companies to avoid purchasing third-party financial instruments to guarantee hazardous waste cleanup if they can prove financial capability to pay for it themselves. But the criteria, referred to as a financial assurance test provides less financial security than traditional third-party financial instruments, such as an insurance policy.

The bleak economic forecast and a potential multi-year period of elevated corporate defaults will test the financial assurance regime that federal and state regulators have established to secure the nation’s hazardous waste cleanup programs.

An ongoing case review being conducted by the U.S. Environmental Protection Agency indicates that a majority of facilities rely on either the financial test or a corporate guarantee to establish financial assurance. And, the number of companies that fail the financial assurance
test could increase dramatically if the number of companies in default in 2009 and 2010 doubles or triples as has been forecast by NYU bankruptcy expert Edward Altman. And the number of defaults arising from the current recession (think auto dealerships) is likely to exceed the existing capacity of federal and state regulators to work with self-insured companies to reestablish financial assurance under third-party mechanisms.

When self-insured companies default and thus become incapable of fulfilling their hazardous waste cleanup obligations, the responsibility falls to the government. A program known as Superfund was set up for this purpose. However, Superfund’s tax authority expired in 1995. At the time, the taxes generated roughly $2.2 billion in annual revenue; approximately $700 million more than the current annual appropriation from general revenues for cleanup efforts.

The Obama administration has proposed a partial Superfund tax reinstatement in its FY 2010 budget. Full reinstatement of the Superfund taxes would replenish the trust fund and free up $1.5 billion within the Interior and Environment appropriations bill, providing the president and congressional appropriators with additional monies to fund other environmental priorities. It would also provide a cushion of up to $700 million per year to absorb new cleanups and return the program to its roots as the nation’s hazardous waste cleanup safety net and the trust fund as its financial assurance mechanism.

Without dedicated tax revenue, hazardous waste cleanup left undone by companies in default will pile up. And with each one, human health and the environment are put at more risk.

Bruce Gruenewald is the Director, Energy and Environment Sector for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. This article was based on a piece Bruce authored for Natural Resources and Environment titled Current Recession to Test Financial Assurance Program. He was the lead economist on the EPA's Superfund Reauthorization Task Force.

Equipment manufacturers gain tax credit

2009-08-21T14:53:00.002-04:00

By Kevin Matthews
Vice President, Energy & Environment Sector

If a manufacturer produces clean energy equipment such as microturbines or electric cars, they can now claim their share of $2.3 billion in new tax credits for up to two years.

The U.S. Department of the Treasury and the U.S. Department of Energy joined forces to create the program, aimed at increasing economic development and pursuing energy independence. According to a press release, the program authorizes the Treasury to provide developers with an investment tax credit of 30 percent for facilities that manufacture particular types of energy equipment. Examples include solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions.

The innovative partnership combined with a common economic recovery strategy forms another example of how Recovery Act money can help ease companies’ current financial burdens brought on by a bleak economy and move toward a future of job growth and security. Frankly, it could play a key role in mere survival for many. It’s absolutely an important new dimension to the incentives created in the Recovery Act to increase U.S. manufacturing output, improve energy efficiency, and develop alternative sources of energy.

The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached. Companies can expect to receive payments within 180 days of filing for the credit. To view the program summary and guidance for applying for the tax credit, please visit the Advanced Energy Manufacturing Tax Credit (48C) page.
Kevin Matthews is Vice President of the Energy and Environment Sector for NSI, where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.

Program provides small firms crucial cash

2009-08-21T13:26:00.002-04:00

By Kevin Matthews
Vice President, Energy & Environment Sector

Thanks to $37 million in targeted federal money, small clean-tech businesses will have a chance to succeed despite the state of the nation’s economy.

The Recovery Act funding will be made available to qualified small businesses through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, the Department of Energy announced Thursday. The programs target U.S. companies with fewer than 500 employees. Small businesses with strong research capabilities in science or engineering and in specific categories related to improving energy efficiency including:

Advanced building air conditioning and refrigeration, thermal load shifting, and cool roofs
Water usage in electric power generation and industrial processes
Power plant cooling
Advanced gas turbines and materials
Sensors, controls, and wireless networks
Advanced water power technology development
Smart controllers for smart grid applications
Advanced solar technologies
Advanced industrial technologies development
Advanced manufacturing processes

These programs will make a big difference for small businesses that bring clean technologies to market and are crucial in driving a clean energy economy. Ensuring their success will certainly create jobs, reduce dependence on foreign oil, and reduce carbon pollution. In fact, many new small business start-ups would not have a chance at surviving through the recession without the financial assistance these new programs will provide.

Kevin Matthews is Vice President of the Energy and Environment Sector for NSI, where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.

Loan program to boost energy efforts

2009-08-21T10:59:00.003-04:00

By Kevin Matthews
Vice President, Energy & Environment Sector

If not for an offer of up to $30 billion in loan guarantees from the U.S. Department of Energy, efforts toward the Obama Administration’s goal of doubling renewable electricity generation over the next three years would die.

The loan guarantees allow access to capital for advanced renewable project development and will therefore most certainly accelerate the process. According to a press release from the department, they’re funded partly through the Recovery Act and partly through 2009 appropriations. Another $750 million will support several billion dollars more in loan guarantees for projects that increase the reliability, efficiency and security of the nation’s transmission system.

The department's Loan Guarantee Program affords banks more confidence and provides borrowers low interest rates and easier payment terms regardless of the fledgling economy, which are crucial elements to get for-profit companies to embark on energy efficiency efforts that will later lead to cost savings but require investment at the outset.

As U.S. Energy Secretary Steven Chu said: “These investments will be used to create jobs, spur the development of innovative clean energy technologies, and help ensure a smart, strong and secure grid that will deliver renewable power more effectively and reliably. We also need a grid that can move clean energy from the places it can be produced to the places where it can be used and that can integrate variable sources of power, like wind and solar.”

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.

Bulk of discretionary dollars go into public safety

2009-08-17T15:38:00.011-04:00

By Al Gordon
Chief Executive Officer

While the bulk of stimulus funding earmarked for state recovery efforts comes with conditions, a small amount comes with the freedom for officials to do with what they please.

According to a recent report published by the Council of State Governments, states are spending $8.8 billion in discretionary funding in the State Fiscal Stabilization funds on various efforts. The largest chunk – more than 28 percent – went to Public Safety, with smaller allocations going toward facility renovation and education as well as Medicaid, Public Assistance and Transportation. Some states are using this money to support the administration of their ARRA funds.

The monies appear to be a small but crucial piece of the $787 billion American Recovery and Reinvestment Act package enacted in February. State officials were given total flexibility with these funds, and the decisions they’ve made about where to put them to use reflect important and timely needs and stabilize key areas of state government.

Alfred Gordon is the chief executive officer of NSI. Prior to establishing NSI in 1995, Mr. Gordon worked as a senior member of former New York State Governor Mario Cuomo’s staff, building upon his extensive background in government and politics. In this capacity, Mr. Gordon oversaw areas, such as legislative relations, intergovernmental relations, constituency affairs and regional services. This article was previously published at ExecutiveBiz.com's blog.

ARRA saves states from deeper dive

2009-08-10T14:02:00.010-04:00

By Al Gordon
Chief Executive Officer

Though state officials have faced difficult choices as they struggle to finalize 2010 budgets across the country, it’s clear the task would be even more grim without a crucial infusion of federal money.

According to the Center on Budget and Policy Priorities, as dire as the states’ fiscal condition is — with dramatic revenue downturns leading in some cases to unprecedented service cuts — evidence shows this bad situation would be substantially worse if not for the $787 billion American Recovery and Reinvestment Act package enacted in February.

The package included a $140-billion allocation for states. Without the federal recovery assistance, spending cuts, service reductions, and tax increases would no doubt be worse, wreaking even more havoc on local economic conditions.

What’s more, the allocation was targeted specifically to education and health care – two of the biggest expenditures within state government. Without those dollars there would have been significant cuts to both areas via increased furloughs and layoffs within state and local governments from arguably the most critical services the government provides. Many communities that depend on the employment associated with these areas to survive might have faced severe financial crises.

The federal aid is enough to close, on average, roughly 30-40 percent of state budget shortfalls. And it’s benefit will continue to play a crucial role in states’ – and the country’s – economic recovery.

Alfred Gordon is the chief executive officer of NSI. Prior to establishing NSI in 1995, Mr. Gordon worked as a senior member of former New York State Governor Mario Cuomo’s staff, building upon his extensive background in government and politics. In this capacity, Mr. Gordon oversaw areas, such as legislative relations, intergovernmental relations, constituency affairs and regional services. This article was previously published at ExecutiveBiz.com's blog.

States’ cash good news for green businesses

2009-07-23T11:41:00.003-04:00

By Kevin Matthews

Seven states and U.S. territories learned earlier this week they will soon receive cash flow for plans that prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions.

The Obama Administration awarded more than $162 million for the state energy programs, according to a press release from the U.S. Department of Energy. Activities eligible for State Energy Program funding include energy audits, building retrofits, education and training efforts, transportation programs to increase the use of alternative fuels and hybrid vehicles, and new financing mechanisms to promote energy efficiency and renewable energy investments.

Any green business would do well to stay abreast of when and where these funds flow and the subsequent opportunities they provide. Solar energy companies and energy efficient window manufacturers are just a couple of the types of businesses that stand to benefit from stimulus spending such as this. And the opportunities will continue to be plentiful as more money becomes available.

Kevin Matthews is Director of Energy and Environment for NSI where he runs the sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison.

Dollars before details in health reform

2009-07-15T07:52:00.009-04:00

By Christine Ferguson

Senior Advisor

Tuesday was a significant step forward in the health reform debate for Democrats in the House. To get three very forceful Committee Chairmen to agree on a proposal was an important achievement as lawmakers continue to wrangle over details of a massive effort to provide insurance coverage for everyone in America. The main issue remains how to pay for it and it doesn’t appear likely that the Senate will embrace the payment mechanisms proposed by the House.

According to published reports, House Democrats want to raise taxes by 5.4 percent on millionaires, make cuts in Medicare and Medicaid and require employers to offer, and individuals to get, health insurance coverage or pay a penalty.

But detailed cost estimates for the tax increases and program cuts weren’t part of the fine print unveiled Tuesday. And discontent amid both parties persists. As is so often the case, agreement on how to pay for health reform will be its biggest barrier and the issue that is focused most on by the Press and the general public. However, the bill is over 1,000 pages long – there are some critical provisions that will encourage major changes in how health care is delivered and data is used to support more effective decision making. While everyone else is focused on the mega tax and spend issues, pay close attention to the details in these important areas because history tells us that even if a big health reform bill is not enacted, many of its most important provisions are included in later legislation. So, even if massive reform falls apart, profound changes could still come through in piecemeal legislation.

Either way, everyone needs to keep paying attention.

Christine C. Ferguson, JD serves as Senior Advisor for NSI’s Health Care sector providing expertise and strategic insight to NSI’s health care clients. In addition to her senior advisory role with NSI, Ms. Ferguson currently serves as a research professor at the George Washington School of Public Health and Health Services.

Stimulus plans need more time and money

2009-07-15T07:28:00.008-04:00

By Al Gordon
Chief Executive Officer

Just four months after the Obama Administration’s stimulus package got the green light, some economists are already pressing the White House for more.

According to a recent article in the Wall Street Journal, some favor a second round of stimulus spending to avert a prolonged job and wage slump. Meanwhile, the White House wants to give the $787 billion stimulus package passed in February time to work -- only 10% of the spending is out the door so far.

We need both.

The Obama Administration has combined stimulus funding with substance, allocating money for issues identified as key issues such as energy, technology and health. This provides more than just an economic boost. It’s a crucial preliminary step in establishing priorities for the Administration.

The timing isn’t a surprise, nor is it unreasonable. It’s not unusual to take several months for funding to make its way to various targeted programs in an environment where accountability and transparency are paramount. Also, programs require plans, which take time to develop and approve.

That said, approving a second round of stimulus funding now could be critical to help states shore up dismal budgets and avoid layoffs. Some may recall critics pointing to lack of government spending to create jobs and therefore prevent further economic peril during the Great Depression. Overall economic health depends on robust local government markets. If states don’t get adequate help now, layoffs could send the economy into a deeper nosedive.

Laws pave way for green business growth

2009-07-08T12:58:00.009-04:00

By Kevin Matthews
NSI Director, Energy and Environment

Landmark energy and climate legislation passed last week provided a critical step in energy reduction efforts that will provide clean-tech companies key financial incentives to grow their business.

The U.S. Green Building Council commended the House of Representatives for passing the American Clean Energy and Security Act of 2009 on Friday. According to a USGBC press release, the legislation includes several significant provisions to accelerate the benefits of green building across the country. The USGBC, which consulted on some of the initiatives or provisions in the new laws, points to green building as critical to the nation’s future economy, energy security, and environment, as buildings account for 40 percent of U.S. energy consumption, 39 percent of CO2 emissions, and 13 percent of water consumption. Greater building efficiency can meet 85 percent of future U.S. demand for energy, and a national commitment to green building has the potential to generate 2.5 million American jobs.

The new laws are an important step toward putting energy efficiency at the forefront of economic growth and opportunity. In this vein, the new laws will generate billions of dollars in capital needed for cities, counties and states to spur and scale green retrofitting of public buildings and reduce the magnitude of energy used for generating a clean water supply while providing a myriad of financial opportunities for companies selling energy-efficient products. Businesses serving the green energy space have begun mapping their strategies and those that have not, should, from a market capture standpoint.

To view USGBC’s summary of the American Clean Energy and Security Act of 2009, visit http://www.usgbc.org/ShowFile.aspx?DocumentID=6070.

Kevin Matthews is Director of Energy and Environment for NSI where he runs the sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison.

Health centers to receive windfall

2009-07-01T09:18:00.009-04:00

Community health centers across the country will receive $851 million in grants that will ultimately increase access to health care for millions of Americans as more are becoming uninsured due to the economic downturn and skyrocketing health costs.

According to a press release issued by the Department of Health and Human Services earlier this week, the money was made available by the American Recovery and Reinvestment Act. The grants will support the construction, repair and renovation of over 1,500 health center sites nationwide. More than 650 centers will use the funds to purchase new equipment or health information technology systems, and nearly 400 health centers will adopt and expand the use of electronic health records.

First Lady Michelle Obama delivered the announcement Monday at Unity's Upper Cardozo Health Center, one of the centers that stands to benefit from the funds.

Community Health Centers deliver preventive and primary care services at more than 7,500 service delivery sites around the country under the watch of Department of Health and Human Services' Health Resources and Services Administration. More than 17 million patients – about 40 percent of whom have no health insurance – receive care regardless of their ability to pay; charges for services are set according to income.

A list of grantees by state is available at http://www.blogger.com/www.hhs.gov/recovery.

Obama Administration Awards More than $154 Million for State Energy Programs in Four States

2009-06-26T10:27:00.006-04:00

Washington, DC (June 25, 2009) -- The U.S. Department of Energy Secretary, Steven Chu, announced more than $154 million in Recovery Act funding to support and speed adoption of energy efficiency and renewable energy projects in California, Missouri, New Hampshire and North Carolina.

States are receiving 40 percent of their total State Energy Program (SEP) funding authorized under the American Recovery and Reinvestment Act. With today's announcement, these states will now have received 50 percent of their total Recovery Act SEP funding. The initial 10% of total funding was previously available to states to support planning activities; the remaining 50% of funds will be released once states meet reporting, oversight, and accountability milestones required by the Recovery Act.

Under the Recovery Act, DOE expanded the types of activities eligible for State Energy Program funding, which include energy audits, building retrofits, education and training efforts, transportation programs to increase the use of alternative fuels and hybrid vehicles, and new financing mechanisms to promote energy efficiency and renewable energy investments.

The Recovery Act appropriated $3.1 billion to the State Energy Program to help achieve national energy independence goals and promote local economic recovery. States use these grants at the state and local level to create green jobs, address state energy priorities, and adopt emerging renewable energy and energy efficiency technologies.

Transparency and accountability are important priorities for SEP and all Recovery Act projects. Throughout the program’s implementation, DOE will provide strong oversight at the local, state, and national level, while emphasizing with states the need to quickly award funds to help create new jobs and stimulate local economies.

The following states are receiving awards to include:

CALIFORNIA - $90.4 million
California will leverage its program funding to provide a statewide energy efficiency retrofit program and cost effective clean energy systems for residential, commercial, and industrial buildings and facilities. The revenue savings that result from these efficiency measures will provide an ongoing source of revenue to continue implementing additional cost-effective efficiency measures. Additionally, California plans to develop and implement a public education, marketing, and outreach effort to ensure the benefits and value of energy efficiency are well understood.

Also as part of California’s State Energy Program, the California Energy Commission (Energy Commission) is investing $15 million through June 30, 2012, in building a workforce to meet alternative fuel and advanced vehicle technology needs through its Green Jobs Training Program. The Energy Commission will expand on this plan and will leverage existing partnerships with $20 million in Recovery Act funding to create a more extensive green workforce focused on energy efficiency and clean energy sources, including wind and solar energy.

After demonstrating successful implementation of its plan, the state will receive more than $113 million in additional funding, for a total of $226 million for the entire program.

MISSOURI - $22.9 million
With SEP funding, Missouri will expand its existing Energy Center program, which includes a variety of home efficiency programs, building energy codes, and education and training initiatives. The funding will go toward encouraging Missourians to reduce their energy consumption by increasing the energy efficiency of their homes, industrial facilities, agricultural operations, transportation, schools and local governments. Under the program, the state will focus on finding energy efficiency opportunities in its five most energy-intensive industrial/manufacturing categories: aluminum, chemicals, food products, metal casting, and forest products including paper. These energy-intensive industries will be examined to determine specific, targeted activities to increase energy efficiency. The state intends to increase industrial and manufacturing energy efficiency through a multi-faceted program that may include energy audits, rebates and low-interest loans, workshops and development of a web-based audit tool.

The Energy Center will also play a key role in providing training to ensure a workforce capable of assessing and deploying energy efficiency technologies.

After demonstrating successful implementation of its plan, the state will receive more than $28.6 million in additional funding, for a total of more than $57 million.

NEW HAMPSHIRE - $10.3 million
New Hampshire will implement several energy efficiency and renewable energy initiatives with funding from the Recovery Act. New Hampshire plans to include programs that will increase building efficiency for businesses, commercial enterprises, institutions and non-profits through building codes and competitive loan and grant programs. The state will provide technical and financial assistance to these businesses and institutions as they seek to reduce their energy use and costs through a variety of measures, including more energy efficient processes. The New Hampshire SEP will also support energy efficiency upgrades to 75 state-owned buildings and 13 college and university campuses, saving taxpayers money and reducing energy use across the state.

After demonstrating successful implementation of its plan, the state will receive more than $12 million in additional funding, for a total of more than $25.8 million.

NORTH CAROLINA - $30.4 million awarded today
North Carolina will establish several programs to increase renewable energy projects and energy efficiency in government, commercial, and residential buildings under its State Energy Program. The North Carolina SEP will use Recovery Act funding to establish revolving loan programs, competitive grant programs, and education and training programs designed to spur investment in energy efficiency and renewable energy technologies. A new revolving loan fund will be created to provide no- and low-interest loans to businesses, nonprofit organizations, local and state governments, and schools and universities, along with competitive grants that will be available to businesses and organizations with innovative clean energy projects.

The state will also develop a multi-level training and workforce program through its community college and university systems to meet the needs of an emerging green economy. This education and training will focus on energy efficiency and clean energy technologies and will provide participants with skills to solve energy problems, reduce energy usage, save energy costs, and access state and federal funding opportunities.

After demonstrating successful implementation of its plan, the state will receive $38 million in additional funding, for a total of $76 million.

(source: U.S. Department of Energy News, www.DOE.gov)

$150B Investment in Clean Energy Can Revive Economy

2009-06-19T15:33:00.005-04:00

Researchers at the Center for American Progress and the Political Economy Research Institute at the University of Massachusetts claim that a $150 billion investment in clean energy has the ability to revive the economy by creating 1.7 billion jobs including jobs for low income and less educated Americans. According to the report:

“These job gains would be enough — on their own — to reduce the unemployment rate in today’s economy by about one full percentage point, to 8.4 percent from current 9.4-percent levels — even after taking into full account the inevitable job losses in conventional fossil-fuel sectors of the U.S. economy as they contract. Our detailed analysis … calculates that roughly 2.5 million new jobs will be created overall by spending $150 billion on clean-energy investments, while close to 800,000 jobs would be lost if conventional fossil-fuel spending were to decline by an equivalent amount. It is not likely that all $150 billion in new clean-energy investment spending would come at the expense of reductions in the fossil-fuel industry. However, we present this scenario to establish a high-end estimate for reductions in conventional fossil-fuel spending, and the net gains in employment that will still result through spending $150 billion per year on clean-energy investments.”

(Source: http://greeninc.blogs.nytimes.com/2009/06/18/more-studies-extoll-virtues-of-green-jobs/#more-13057)

Coming Soon: Recovery Act Grants for Medical Informatics

2009-05-28T16:47:00.006-04:00

(Source: http://www.softwareadvice.com/articles/medical/recovery-act-grants-for-medical-informatics-1052109/)

The American Recovery and Reinvestment Act of 2009 (the ARRA, also known as the Stimulus Bill) allocates $51 billion to healthcare. Universities that want to establish and/or expand health informatics programs are entitled stimulus bill funds. But what’s available? Who qualifies? And how can universities take advantage of the funds?

We recently called the Office of the National Coordinator for Health Information Technology (ONC) to learn more. All they could tell us is funding will be available, but the details have yet to be confirmed and set in writing. We quickly learned we were not the first people to call; many others are wondering the same things as us.

While we can only speculate about when and how much will be available, one thing is for certain: there will only be so much to go around.

Here’s what you need to know and what you need to do to be prepared.

Who is Eligible?

There are two different grant programs described in the stimulus bill. The grants are for universities that wish to:

Carry out a demonstration project to develop academic curricula integrating certified EHR technology in the clinical education of health professionals (section 3015), or;
Establish or expand medical health informatics education programs (section 3016).

The grants will be available to the following institutions of higher education:

A school of medicine, osteopathic medicine, dentistry, or pharmacy;
Graduate programs in behavioral or mental health, or any other graduate health professions school;
Graduate schools of nursing or physician assistant studies;
A consortium of two or more schools described in the lines above;
An institution with a graduate medical education program in medicine, osteopathic medicine, dentistry, pharmacy, nursing, or physician assistance studies, and’
Certification, undergraduate and masters degree programs for information technology.

Also among this group are universities that want to integrate EHRs into community-based clinical education. That is, clinical education in an outpatient setting at a community health center or Federally Qualified Health Center (FQHC).

The application process and requirements for each grant are generally similar. Though there are a few provisions to be aware of. Let’s take a look at the first program.

Section 3015 - Demonstration Program to Integrate Information Technology into Clinical Education

Grants under this section will be awarded to universities that carry out a “demonstration project” to develop curriculum using electronic health records (EHRs). Funding will be provided by the Secretary of Health and Human Services and will cover up to 50 percent of costs.

To apply, universities will need to submit a plan that explains how they will integrate EHRs into their program. This must include details on how students will be instructed to use EHRs to reduce medical errors, increase access to prevention, reduce chronic diseases and improve quality of care. The plan must be accompanied by a formal application.

Grantees will also be required to provide data on the program’s effectiveness in improving patient safety, efficiency of care delivery, and in increasing the likelihood that graduates will use EHRs in the delivery of future health care.

Limitations and Provisions

Before applying, there are a few requirements to be mindful of. First off, grants will be awarded on a competitive basis and will be subject to peer review. Secondly, the EHR used in the demonstration project will need to meet certification standards set by the Office of the National Coordinator for Health Information Technology. The National Coordinator is slated to have the standards finalized by January 2010.Section 3016 - Information Technology Professionals in Health CareGrants awarded under section 3016 will go to universities that want to establish or expand medical health informatics programs. Financial assistance will come from the Secretary of Health and Human Services - in consultation with the Director of the National Science Foundation - and will cover the following activities:

The development and revision of curricula in medical health informatics and related disciplines;
The recruitment and retainment of students to the program;
Acquisition of equipment for student instruction, including installation of testbed networks, and;
Establishment and enhancement of bridge programs between community colleges and universities.

One thing to keep in mind, priority will be given to existing programs or programs designed to be finished in six months.

To read more about what Universities can do to prepare, http://www.softwareadvice.com/articles/medical/recovery-act-grants-for-medical-informatics-1052109/)

State by State List of Stimulus Czars and Websites

2009-05-07T09:23:00.005-04:00

As the stimulus spending continues to be a high priority across the states, Governors are organizing and aligning point people to oversee the stimulus activity. For a comprehensive list of point people and web sites for each of the states, the following link provides an easy access table (source: Stateline.org). http://www.stateline.org/live/details/story?contentId=391748

Broadband Stimulus Funds Up for Grabs

2009-04-15T14:48:00.005-04:00

In a recent article posted by The Wallstreet Journal, discussions heat up around who controls the stimulus monies that flow for broadband initiatives.

WASHINGTON -- Now that money from the $787 billion economic stimulus is starting to flow, the jockeying for control over some of those funds is heating up.

State officials argue that they often know best how to divvy up the portion of stimulus funds earmarked for competitive projects. That has put the Obama administration in the middle of a tug-of-war between the states and some consumer advocates who want to keep more control of stimulus grants at the federal level.

This tension can been seen as the administration wrestles with how to hand out $7 billion allocated in the stimulus package for expanding broadband services.

Officials from 38 states have told the administration they should have a big say in allocating broadband stimulus money. State regulators want the Obama administration to give them time to rank broadband projects in their areas. And they're asking for stimulus funds to hire a few full-time employees to review the applications.

"States have intimate knowledge of their communications environment, geography and demographics, along with every incentive to make certain the money is not wasted and is properly targeted," said regulators from 38 states in a recent letter to the administration.

Some smaller Internet providers favor state involvement in picking projects, because they're concerned it may be too costly to compete for grants on their own. Steve Mossbrook, president of Wyoming.com, a wireless Internet service provider who serves about 10,000 customers, said about 80% of his costs come from leasing access to local Internet lines, which are owned by larger phone companies. "I'm trying desperately to encourage the state to take a leadership role and build some [Internet] backbone systems for Wyoming," he said.

But some consumer groups want the administration to retain tighter control over broadband funds. They worry that otherwise the money could end up going to the most politically connected locals and not advance goals such as reaching Americans with no high-speed Internet access in mountainous areas, or providing cheaper access for low-income city dwellers.

"We're not saying leave [state officials] out entirely," said Art Brodsky, communications director of Public Knowledge, a Washington, D.C., Internet advocacy group. "What you want is an efficient, uniform program. That would be done to the best uniformity and efficiency by one agency."

Billions in stimulus money have already been handed out through existing programs like Medicaid, Community Development Block Grants and highway-funding mechanisms.
Now, the challenge for federal agencies will be handing out the stimulus funds based on competitive proposals, not familiar formulas or programs. Congress didn't spell out details about how the government would pick winners of these grants.

"During our public meetings, various stakeholders gave us very valuable but divergent views about how we should deal with these issues," Mark Seifert, a former congressional staffer who has been put in charge of the Commerce Department's broadband stimulus program, said recently to Congress.

Right now, Mr. Seifert is running the $4.7 billion broadband program at the Commerce Department's National Telecommunications and Information Administration, and will offer the staff's recommendations to new Commerce Secretary Gary Locke on how to structure the program in a few weeks. Those critical decisions on the criteria required of applicants will likely be made before the NTIA's new head, Larry Strickling, is confirmed.

"We have to figure out what's best to meet the statute's goals, what's best to get the stimulus dollars out in a quick, effective way," Mr. Seifert said in an interview. "We're still in the 'let's look and see what everyone says' stage."

Some states are running ahead of Washington in assessing their broadband needs, and say they should have a major say in how federal broadband money is spent in their states. At least nine states have funded maps showing how much high-speed Internet service is available.
California officials have created a map of where broadband service is available and at what speeds. They've also committed more than $15 million in grants to bring high-speed Internet service to communities that lack it.

"I know my state best," said Rachelle Chong, a member of the state's Public Utilities Commission and a former Federal Communications Commission commissioner. "The worst scenario is having one little federal agency reviewing thousands of applications from around the country."

(Source: http://online.wsj.com/article/SB123976018012019527.html)

2009-03-24T13:10:00.001-04:00

Vice President Biden Issues Letters to the Nation’s Mayors on Accountability for Recover Act Projects

The White House released a letter http://www.whitehouse.gov/assets/documents/Biden_USCM_letter.pdf on Friday, March 20th that Vice President Biden sent to the President of the U.S. Conference of Mayors, Mayor Manny Diaz of Miami, FL. The letter, thanked the U.S. Conference of Mayors for their the leadership commitment to ensuring that projects put forward under the Recovery Act maximize job creation and detailed the accountability standards that will be applied.

In the letter, Vice President Biden said “As we begin the implementation of the Recovery Act, the focus of the federal agencies has turned to determining which types of projects will be funded by the different categories of the Act. As you know, there are many types of projects that are specifically excluded from receiving funding, such as casinos or other gambling establishments, aquariums, zoos, golf courses, and swimming pools. Moreover, the increasingly tough times we face – and specific provisions of the Recovery Act – suggest that some types of projects, though not explicitly prohibited, are inconsistent with the purpose of the Act, and should not be funded.”

The Vice President went on to say “… that when marginal projects are identified, the Administration will use its powers to have those projects removed from lists and denied ARRA funding where appropriate. At this critical moment, we simply cannot afford to fund projects that do not meet absolutely critical needs. Thus, as applications from potential grantees under the Recovery Act come in, we will scrutinize them carefully …