On the morning of Dec. 16, Variety telephoned Federal Region IX program grant managers for a deeper probe into the issue; the results were revealing and insightful.
“We have not received a written or verbal request for reprogramming of EPA/DEQ grant money,” stated Michael Mann, Environmental Protection Agency-Pacific Islands grants officer when asked what communication the local Division of Environmental Quality has sent to date concerning the 2012 program.
The manager of EPA’s Pacific Islands department confirmed Mann’s statement and added he had “no recollection of Governor Fitial advising the Federal Regional Council IX during meetings of any plan to implement austerity on federal grant programs.”
The FRC serves as a vehicle for coordination of Arizona, California, Hawaii, Nevada, and the Outer Pacific Islands grant programs among 19 separate federal departments and agencies.
Variety requested 2011 FRC meeting minutes from the committee chair’s office but at press time, no response was forthcoming.
Grant rules
It is important to point out that the vast majority of federal grants do not provide “up front” money.
Local governments must “advance” initial grant program operating money and as expenses are accrued the local grant manager submits invoices to a federal grant officer for approval and reimbursement; a continuous “spend and reimburse” feedback loop.
Numerous FRC department officials commented on the condition of anonymity that the lack of local funds to “advance” to the locally administered grant programs was the factual reason for applying austerity to fully federally funded employees.
“If money doesn’t get spent, it doesn’t get reimbursed by the granting agencies — simple as that,” was the common explanation.
Also in play is the possibility that since the NMI is establishing a lower baseline of used grant funding, the federal granting agencies will come back and award lower amounts for future grants.
Region IX grant officers stated this outcome was a distinct possibility considering the current push by Republicans to slash government spending in Washington, D.C.
For responses, Variety doubled back to affected local grant staff previously interviewed on this subject.
All the reactions addressed the same theme: government honesty and accountability.
“We’re not stupid…everybody knows the NMI is struggling with a cash problem — but why can’t Governor Fitial be honest about the situation and stop with the ‘fairness and morale’ excuses,” commented one frustrated grant staffer.
Bottom-line
Should austerity on federally funded staff carry through the entirety of 2012 the unused grant money mandated to be sent back to the federal government would total approximately $6 million.
Local grant employees fumed over the large number and more than one person referenced the holiday season as an opportunity for openness from Capital Hill.
“The governor should embrace the ‘giving’ aspect of Christmas and speak honestly about austerity and how much we workers and the commonwealth stand to lose…in 2012 and beyond.”
