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Accelerate Indiana: Formulaic Funding

Stimulus Funding: Overview

Much of the federal stimulus package funding that will come to Indiana will be distributed via formula-based funding. A formula distribution means that allocations will be made to certain recipients through existing formulas in use by the federal government.

According to current information, Indiana expects to receive about $4.3 billion in formula funding. Here are categories with the largest amounts of projected funding:

  • Medicaid:  $1.4 billion
  • Education:  $1.3 billion
  • Roads and Bridges:  $650 million
  • Nutrition:  $400 million
  • Weatherization:   $100 million
  • Water Quality:  $100 million
  • Housing:  $100 million
  • Public Transit:  $80 million
  • Energy:  $70 million
  • Employment Services:  $70 million
  • Child Care:  $40 million
  • Justice:  $40 million

Some of the funding will flow directly to organizations or programs for their use. For example, the U.S. Department of Housing and Urban Development announced recently that several communities in Northwest Indiana, including Gary, Hammond, East Chicago and Lake County will directly receive about $5.8 million in Homeless Prevention Grants.

Funding Categories

Education, Medicaid

Funding distribution for Indiana will be overseen by the Office of Management and Budget and, respectively, the Department of Education and Family and Social Services Administration.

Highway Infrastructure

The Indiana Department of Transportation has already released two lists of projects that are stimulus eligible and will continue to move forward other projects that are ‘shovel ready’. Visit the INvest.in.gov Highways, Bridges & Transit page for more information: http://in.gov/gov/2991.htm

Water Infrastructure

The Indiana Finance Authority, through the State Revolving Fund (SRF), will oversee the distribution of $94,447,485 to fund wastewater infrastructure projects and $27,212,000 to fund drinking water infrastructure projects. For more information, visit the SRF Program’s stimulus information page at:  http://www.in.gov/ifa/arra.htm.

Energy Conservation

The Indiana Housing and Community Development Authority (IHCDA) has announced the posting of the Request for Proposals (RFP) for Energy Conservation and Weatherization Program service providers. Through the American Recovery and Reinvestment Act of 2009 (ARRA), the state of Indiana will receive $131.8 million in stimulus funding for energy conservation (weatherization) efforts.  The IHCDA is seeking qualified and responsive proposals from non-profit organizations and local units of government willing and able to administer the Low Income Weatherization Assistance Program to families under 200% of Federal Poverty Guidelines.  Services include but are not limited to determining client eligibility, conducting client intake, performing audit services, weatherizing dwellings, and managing data entry. The contract term will be from May 1, 2009 through March 31, 2010. Click here to download the RFP.  Please note the RFP deadline is 5 P.M. Friday, April 17, 2009.

Other formula funding

State agencies will implement other funding provided by the American Recovery and Reinvestment Act, such as weatherization and energy categories noted above. Governor Daniels has convened a committee to ensure that all federal stimulus funds spent in Indiana are used effectively. Preference will be given to opportunities that create jobs now and leave permanent assets. This group is chaired by Lieutenant Governor Becky Skillman and includes representation from the Governor’s Office, the Office of Management and Budget, and the Indiana Economic Development Corporation.

Currently, many federal agencies are writing guidelines, rules and regulations for uses of funds. Once those are received and reviewed at the state level, more information about how funds can be used will become known.

Sub-Grant Information

Some formula-based federal stimulus funds include sub-grant components administered by the state.  Follow the links below for more information including: specific sub-grant overviews, eligible recipients, application due dates and how to apply.