The Federal Grants Management Office (FGMO) in CPAT was created after the state government’s successful coordination of $7.5 B in additional funding through the America Recovery and Reinvestment Act (ARRA). In managing ARRA funds, real time information was used to track usage and outcomes. This ensured ARRA funds were spent in a timely manner to create and retain jobs and support economic recovery.
Learning from ARRA is enabling the state to improve its management of the $16 B in annual state revenue that derives from federal funding. This includes identifying information gaps in how well federal grant funds are managed and spent. While spending from federal sources is accounted for, it was found that grant awards could be better coordinated and used more effectively. Additionally, better management of federal grants could enable deeper analysis of the effects of federal budget policies on state finances. To play this critical central oversight function and lay the foundation for more effective grants management, the FGMO has:
- Taken an All-Funds Budgeting Approach – for the first time ever, detailed spending plans for the 118 largest federal grants were developed alongside the operating budget, an “all-funds” approach to better managing state resources that will be continued;
- Commenced Development of an Enterprise-Wide Grants Management System – the need for an automated IT system to support state government in maximizing federal funding was identified as part of a collaborative review with representatives from all Secretariats; and
- Completed Impact Analysis of Potential Federal Grant Reductions – a detailed impact of federal budget sequestration and potential grant reductions was completed and has informed both short-term budget development and long-term fiscal policy planning scenarios.
Going forward, the unit will continue to work to maximize federal awards, ensure federal funding is aligned with Administration priorities and that it best supports the goals state government is working to achieve.