Projo Politics Blog

Carcieri officially accepts federal stimulus funds

5:37 PM Thu, Feb 26, 2009 |
By Steve Peoples    Email this author |   Email this entry

PROVIDENCE -- With the leaders of the General Assembly standing behind him, Governor Carcieri this afternoon signed a document officially accepting $1.1 billion in federal stimulus funds expected to flow to Rhode Island over the next two years.

"This is an incredibly important day for the state," Carcieri told a standing-room only crowd during a State House news conference.

Governors around the country are required by April 3 to certify that they want the federal dollars and will use them "to support activities that will create jobs and economic development."

Carcieri promised to work cooperatively with the General Assembly and the state's congressional delegation to ensure federal funds were distributed quickly and effectively. House Speaker William J. Murphy and Senate President M. Teresa Paiva Weed also pledged cooperation.

The most immediate effect of the stimulus on Rhode Islanders will be felt next week, when 38,500 residents currently collecting unemployment will see a $25 bump in their weekly checks.

That's "almost $1 million coming into the state economy starting next week," Carcieri said.

The governor also said he will change the makeup of his Office of Recovery and Reinvestment, which will largely manage the federal funds. Carcieri established the four-person office earlier in the month led by deputy chief of staff Beverly Najarian.

In doing so, he ignored a recommendation of the state Economic Development Corporation to create a committee that shared control of the funds with the legislature, according to a story in today's Journal.

Today, Carcieri changed his position, promising to include legislative representatives on decisions going forward. Speaker Murphy said there would be at least two House staffers regularly involved in the governor's office.

While Carcieri acknowledges the Assembly has the ultimate authority to appropriate federal funds, the governor's Office of Economic Recovery and Reinvestment will control oversight, monitor spending deadlines, and set funding priorities for the massive stimulus package.

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