H.R. 2182: Enhanced Oversight of State and Local Economic Recovery Act

H.R. 2182

Enhanced Oversight of State and Local Economic Recovery Act

Date
May 19, 2009 (111th Congress, 1st Session)

Staff Contact
Communications

Floor Situation

H.R. 2182 is being considered on the floor under a suspension of the rules, requiring a two-thirds majority vote for passage on Tuesday, May 19, 2009. This legislation was introduced by Rep. Edolphus Towns (D-NY) on April 29, 2009. The bill was referred to the Committee on Oversight and Government Reform, which held a mark up and reported the bill by voice vote on May 6, 2009.

Bill Summary

H.R. 2182 would authorize State and local governments to set aside up to 0.5 percent of funds they receive from the American Recovery and Reinvestment Act (the so-called "stimulus" bill) to conduct oversight in order to "prevent and detect waste, fraud, and abuse."

The bill would also authorize State and local governments to use General Services Administration's (GSA) federal supply schedules to purchase goods and services that are funded through the stimulus bill. The bill stipulates that any firm that sells to the federal government through the supply schedule could voluntarily choose whether to participate in the sale to State or local governments.

Finally, the bill would require the Office of Management and Budget (OMB) to issue guidance to "ensure accurate and consistent reporting of ‘jobs created' and ‘jobs retained.'"

Background

On February 13, 2009, the House passed the $792 billion conference report to H.R. 1, the American Recovery and Reinvestment Act (ARRA), by a vote of 246-183-1. Under the legislation, the federal government will provide State and local governments hundreds of billions of dollars for a wide variety of projects and programs. For federal spending programs, the government maintains the federal supply schedule to purchase bulk goods and services from private firms at discounted rates. Under current law, State and local governments are authorized to utilize the supply schedule only to make purchases related to related to law enforcement, fire fighting, disaster recovery, or information technology. The legislation would give State and local governments the authority to use the schedule for purchases made with funds from ARRA.

When ARRA was signed by the President on February 17, 2009, the Administration stated that 75 percent of the funds would be spent by the end of 2010. However, this estimate was recently scaled back and now only 70 percent of the funds are expected to be spent by that point. The President also stated that the "stimulus" would create or save three to four million American jobs. In order to properly assess the number of jobs created or saved as a result of the legislation, the bill would require OMB to issue guidance to ensure accurate reporting of "jobs created" and "jobs retained."

 

Cost

According to CBO, H.R. 2182 would have no significant effect on the federal budget. The bill would increase federal collections because the General Services Administration (GSA) charges State and local governments 0.75 percent fee on all purchases made through the federal supply schedule. However, CBO states that the budgetary impact of the increased collections would be negligible because those funds are spent for GSA's administrative costs without further appropriation.