Even though the American Recovery and Reinvestment Act of 2009 was enacted into law only a few weeks ago, the plan has already begun affecting both the University and the Charlottesville area.
The stimulus bill, which President Obama signed into law Feb. 17, is intended to help alleviate some of the tension felt by a large portion of the country’s population during the current economic crisis.
“Specifically, the stimulus was designed to get money flowing into the economy in ways that it will be used immediately and fill some urgent needs,” said Jessica Barba, press secretary for U.S. Representative Tom Perriello, D-Charlottesville.
The University also has been affected by the act, especially in terms of funding for research, assistant vice president for research Jeff Blank said.
“The University is hoping to get its share in research dollars,” Blank said.
For example, more than half of University-sponsored research funding comes from the National Institute of Health, Blank noted. The plan gave the National Institute of Health $10.4 billion to be spent during the next two years, “which aligns nicely with our research efforts,” Blank said.
The grants will be very competitive, Blank said, and “there’s no guarantee on the funds.” Blank added, however, that students and faculty should take advantage of these “different pockets” of money, as well as education money not yet designated solely for research.
In terms of funding for the University as a whole, the act orders that each state spend some of the money on both K-12 education and higher education, said Colette Sheehy, vice president of management and budget.
It remains unclear, though, as to how the funds the University receives will be used. Some issues that may be taken into account include addressing new costs, offsetting budget reductions and possibly limiting tuition increases, Sheehy said.
“We make recommendations as staff,” Sheehy said, “but the Board [of Visitors] approves the budget ultimately.”
As for Charlottesville area benefits, the act will help “essential services” such as education, public safety and housing, Barba said.
So far, about $1.6 billion from the stimulus has been implemented locally to help fund services that were experiencing budget shortfalls, Barba said.
“The schools and the sheriff offices were facing some deep budget cuts and layoffs,” Barba said. But now, most of that has been avoided because of help from the stimulus.
In addition, “we have a long laundry of projects that we have identified as big candidates for stimulus funding,” Charlottesville Mayor Dave Norris said, adding that he hopes to receive a significant amount of money for energy efficiency initiatives, like helping local homeowners and business owners make energy improvements.
“Charlottesville is very well placed to take advantage of any funding that comes down the pipes for clean energy initiatives,” Norris said.
Besides these current projects, more funds have been set aside for projects that will help various Virginia entities move forward, Barba said.
“For example, this week we announced that Charlottesville is going to receive $144,000 in Community Development Block Grants as well as $797,000 for modernization of public housing,” Barba added.
Despite the help the plan has provided thus far, “we are still in the very early stages of actually lining up funding for projects,” Norris said, and there is still much work to be done before the bill is fully utilized.
Norris added that he would have liked to have seen more money placed into other initiatives like infrastructure and energy efficiency initiatives nationwide, but said he recognizes that the plan is a “product of compromise.”
Moreover, the amount of money is limited, Sheehy said.
“This is only two-year money, temporary money,” Sheehy said, noting that it is important to ensure that ongoing costs are not created once the stimulus goes away.
Barba, meanwhile, said the bill is a step forward in terms of increasing funding for a variety of both local and national projects.
“Our country is facing an economic crisis, and before you start healing you have to stop the bleeding,” Barba said. “This is an effort to stop the bleeding.”
Read More
Shots fired reported at 100 block of Harmon Street, no injuries reported
By Thomas Baxter | 3 days agoThis is the first community alert of June.
Full Board discusses financial aid challenges, medical research and entrepreneurship
By Thomas Baxter | 5 days agoBoard members discussed the Pan-University Entrepreneurship Initiative, a project that aims to help develop more entrepreneurial ventures at the University.
Finance Committee approves 2024-25 operating budget and Major Capital Plan
By Zackary Holt | 5 days agoThe proposed 2024-25 fiscal year budget for the Academic Division includes a 6.8 percent increase in spending over the previous year.
