Establishes the office of the federal stimulus ombudsman

BILL NUMBER:A8941

Title of bill

An act to amend the state finance law, in relation to establishing the office of the federal stimulus ombudsman

Purpose or general idea of the bill

Creates the Office of the Federal Stimulus Ombudsman to oversee the spending of funds received under the American Recovery and Reinvestment Act of 2009.

Summary of provisions

*Defines the terms "commission," "candidate," "ombudsman," "recovery act," and "agency."

*Establishes The Commission on Nomination for the Federal Stimulus Ombudsman.

*Lists the functions the commission shall have, and provides a mechanism for appointing the Ombudsman.

*Creates the Office of the Federal Stimulus Ombudsman.

*States the declaration of policy that the Ombudsman, shall follow.

*Defines the general functions, powers and duties of the Office of the Ombudsman.

*Establishes performance oversight guidelines for various State agencies receiving recovery act funds.

Justification

Under the American Recovery and Reinvestment Act of 2009, New York State will receive nearly $27 billion to help invigorate the state's economy. It is essential that these funds and any additional stimulus funds are used in a manner which ensures job growth and the resurgence of our economy.

To ensure that stimulus funds are used efficiently we must establish a transparent, independent and effective manner to disburse and track the funds. To achieve these goals, we must create an application process for funding that is open to the entire public, not just people with lobbyists or political connections. Additionally, we must set up a system which tracks stimulus funding all the way down to the last dollar being spent with mechanisms to evaluate the community-level and household-level impact of those funds. Due to the large sum of money involved and the speed at which it is expected to be disbursed, the federal government has urged states to allocate a portion of the stimulus funds for oversight purposes.

This bill creates a nominating commission to appoint nominees for the head of the Office of the Federal Stimulus Ombudsman. The Governor will then be empowered to select the Ombudsman from the commission's list of nominees.

Once appointed, the independent Ombudsman will be directed to establish standards and performance measures in the evaluation of funding decisions and outcomes. Furthermore, the Ombudsman will be empowered to oversee the spending of stimulus funds by state agencies. The mechanisms contained within this legislation will not only provide

oversight of stimulus spending, but also foresight as we progress through the economic recovery process.

By creating an independent office to oversee the effectiveness of stimulus investments we will ensure that New York has the nation's most advanced oversight system, placing our state in a potentially-valuable position should future federal stimulus funding become available. More importantly, this will ensure that New York's stimulus funds are used in a manner to create the maximum amount of jobs and economic growth, and for the state to gain valuable insights regarding the efficient and effective use of government investments in the long-term. This piece of legislation will create a template for other states to use and help move the national economy forward.

Legislative history

New bill.

Fiscal implications

As the Office is expected to be funded from Federal grants available to the states for oversight of stimulus programs, there is no anticipated adverse fiscal impact to the State or local governments.

Effective date

This act shall take effect immediately.