Wednesday, March 11, 2009

Former governor running NM office for federal aid

Former New Mexico Gov. Anaya to run office overseeing state's share of federal stimulus money

SANTA FE, N.M. (AP) -- Former Gov. Toney Anaya is returning to state government to run a new office that will oversee the spending of federal economic stimulus money flowing to New Mexico.
The state expects to receive about $1.8 billion in federal money over the next two years, and the state is preparing to use part of the money to start six highway construction projects worth $106 million.
Gov. Bill Richardson announced on Wednesday that Anaya will lead the Office of Recovery and Reinvestment. He described Anaya as "one of New Mexico's most distinguished citizens." Anaya, a Santa Fe Democrat, served as governor in 1983-86.

High-ranking staff from state agencies have been assigned to the office, which will make certain New Mexico complies with extensive federal guidelines for spending the federal aid and assist the state and local governments in seeking grant money. At least $80 billion nationally will be allocated through competitive grants.
The state is launching a Web site to offer information to the public, local governments and other groups on the federal money available to New Mexico and how it will be spent. Richardson encouraged citizens to use the Web site to send suggestions on projects that can be financed with the federal assistance.
The largest share of federal money will go to health and human services -- almost $630 million, with much of that for Medicaid, which provides health care for the poor and uninsured children.

Nearly $590 million will flow to educational programs, including for special education and helping schools with a high percentage of students from low-income families. New Mexico already plans to use part of the educational money to pay for public school operations next year.
About $250 million is available for transportation, including state and local highway projects, and $175 million is for commodity and nutrition assistance programs, such as food stamps.
Richardson said the federal money will help create jobs and avoid cutbacks in some state programs, such as in public schools and Medicaid. But he emphasized New Mexico still faced serious budget problems in coming years. State revenues have dropped as the economy deteriorated and oil and natural gas prices plummeted.
"All of us must keep in mind that next year is going to require prudence in our budgeting because these are one-time moneys," Richardson said.
When the federal aid runs out, New Mexico will have to use state tax dollars to cover some of the programs -- such as schools -- that are financed with the economic stimulus money.
"The recovery package is not a panacea or a solution for our budget or economic problems," said Richardson. "It will help us but we have a tough row ahead."

Anaya said, "We can't squander this opportunity."
The federal economic stimulus plan "offers a daunting challenge for state government but it also offers a once-in-a-lifetime chance to institutionalize some structural changes, to develop the infrastructure of the future and take additional steps toward ... redesigning our economy for the 21st century," Anaya said.

Anaya will work for the state under a contract paying him $35,000 through June, with an additional $5,000 set aside for any travel that's required of him, according to Pahl Shipley, a spokesman for the governor.
The Legislature will not formally appropriate the federal money, unlike what happens with state tax dollars. Part of the federal aid flows automatically to programs based on current formulas, such as Medicaid and so-called Title I money for schools. But there's discretion in what projects are financed with block grant money and other assistance, such as money for "green infrastructure" and projects to improve energy efficiency and water conservation.
Richardson said the administration is working with the Legislature to ensure that legislators have a voice in making recommendations for use of the federal money. For example, a budget bill moving through the Legislature is based on the use of $165 million in federal money for public schools next year.


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