State to apply for stimulus fund waiver

04/02/09 - The University of Rhode Island may not be receiving its full share of the federal stimulus money being doled out under the American Recovery and Reinvestment Act of 2009.Under the act, signed into law in February, a portion of the money is allocated to states and comes through the State Fiscal Stabilization Fund program.

Administered by the U.S. Department of Education and backed by a $53.6-billion appropriation, the program will award money to states to help support and maintain education.

To be eligible for funds, states must demonstrate a strong commitment to education.

Under the "maintenance-of-effort" provision, states applying for funds must guarantee that the state will continue to support the educational system at the same level over the next three years, as it did in fiscal year 2006.

Because of dwindling state support, Rhode Island is one of only three states to fail to meet these criteria, said Vice President of Administration Robert Weygand.

"In 2006 the support for the University of Rhode Island was around $85 million, right now it's $62.8 million," Weygand said. "It's unlikely, highly unlikely, that the state of Rhode Island is now going to boost us back up to the $85 million level."

The act does allow for states failing the requirement to apply for a waiver from the Department of Education.

Jack Warner, commissioner of the Rhode Island Board of Governors for Higher Education, was optimistic for the state's chances, citing the economic troubles that led to the decreased funding levels.

"We have high levels of unemployment, the state's been very stressed for funds for several years, we were one of the earliest into the recession, so I think there is a case to be made," Warner said.

If Rhode Island were to receive a waiver, the state would be in line to receive approximately $135 million.

Of these funds, Gov. Donald Carcieri's budget for fiscal year 2010 sets aside $22.2 million for the state's three public institutions of higher education.

The majority of the funding would go to primary and secondary education, with some money diverted to other areas, including $10 million to the Station Fire Fund.

The $22.2 million for higher education would be distributed by the state in three installments of $6.6 million for fiscal year 2009 and $7.8 million in fiscal years 2010 and 2011.

"That is what's at stake," Warner said. "Not a large amount of money, but enough money to help during difficult financial times."

Allocation of the potential funds among the three institutions was not set, but Weygand said that based on past practices he would expect about $11 million total to go to URI during the three-year period.

Weygand echoed Warner's sentiment regarding the potential funds.

"It's something that we should be very appreciative of, but it's not a huge amount of money as compared to what most people have thought," he said.

The university would not be putting the potential stimulus funds directly into its operational budget "because if you put it into your operational money, after the three years are gone, now you've got a ... financial gap in your budget," Weygand said.

Instead, the money would be put toward capital projects designed to yield long-term benefits, Weygand said.

Potential projects include building repairs targeting energy conservation, and improvements in classroom and laboratory technology.

At present, the university has more than $400 million dollars worth of deferred maintenance on campus, Weygand said.

The State Fiscal Stabilization Fund is not the only potential source of federal stimulus dollars coming into the campus.

The stimulus bill has also sent an infusion of grant money to a variety of federal agencies.

The URI Division of Research and Economic Development is working to obtain some of this money through competitive grant applications.

Karen Markin, director of research development with the department, said she is helping professors apply for more grant money and is taking advantage of new grant opportunities.

These opportunities include grants available for construction projects, expensive scientific equipment and expanded funding for research grants, Markin said.