FPN News

Florida's "Stimulus Czar" Reviews Recovery Act With State's Foundations, Nonprofits

Florida will receive $14.1 billion over the next three years from the American Recovery and Reinvestment Act of 2009.  At a June 16 Webinar sponsored by Florida Philanthropic Network, Florida Economic Stimulus Special Advisor Don Winstead - dubbed the "Stimulus Czar" by Gov. Charlie Crist - gave a detailed overview of the Recovery Act to more than 60 foundation and nonprofit representatives.

Winstead explained that the stimulus funds come from two main sections of the Act: Division A, which provides omnibus appropriations to federal and state agencies to augment programs resulting in job creation, and Division B, which includes tax, unemployment, health, state fiscal relief and other spending provisions.  Division A funding comes through 16 Titles; Division B funding through seven Titles.  Stimulus dollars for areas such as education or workforce development can come through multiple Titles in both divisions of the Act.

Of the $14.1 billion in stimulus dollars that Florida is expected to receive, the largest amount of funding ($4.37 billion) will be in the form of an increase in Florida's Federal Medical Assistance Percentage (FMAP) for Medicaid, foster care and adoption assistance, followed by education ($3.57 billion), benefit payments to individuals ($3.1 billion) and transportation and economic development ($1.88 billion).

Winstead identified several possible opportunities for private funders to help Florida maximize the federal dollars it receives from the Recovery Act.  For example, he noted that the Act created the Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund to reimburse states for 80% of their increased spending in certain areas, such as basic cash welfare assistance, for families in need.  Florida has seen a 60% increase in its food stamp caseload over the past two years and an 80% increase in adults seeking TANF assistance, so the state could clearly use these increased TANF funds, according to Winstead.  He said private foundations could help the state maximize the dollars it can receive from the TANF Emergency Contingency Fund by helping to cover the state’s required 20% share of the funding.

Winstead explained that foundations can also help organizations receive stimulus dollars available through programs like the Neighborhood Stabilization Fund, where grant applicants earn more points in the screening process if they have funding partners.

To download Winstead’s FPN Webinar presentation (PDF), click here.