2012Annual Report: Federal Funds to Maryland State Agencies



Summary

Dear Reader:

The American Recovery and Reinvestment Act (ARRA) had as large an impact on federal grant funds flowing to states as any federal law in recent history. With most of the large ARRA funds already having been spent, the 2012 Grants Office Annual Report also reflects the first overall reduction in federal grant funds returning to Maryland (between FY 11 and FY 12) in recent history.

In state fiscal year (FY) 2011Maryland state agencies received approximately$9.9billion. In FY 2012,$9.2 billion in total federal grant funds were secured by Maryland state agencies, and in FY 2013 we anticipate another $9.2 billion in federal grants, though the difficulty of predicting this out-year number is greater than ever.

Of the 508active federal grant programs in this year’s report, 56 of these are ARRA funded programs, many with the last of their active funds being reported in FY 11. The single largest grant program this year remains Medicaid (DHMH), with federal funds received for Medicaid topping $4 billion in FY 12. The “other” 507 grants combined total just over $5 billion in FY 12.

In FY 11, approximately $1.6 billion was secured through ARRA grants, with this figure dropping to $194 million in FY 12. The end of the ARRA Fiscal Stabilization grant alone results in a reduction of $422 million between FY 11 and FY 12.

The overall reduction in federal grants funds for Maryland state government would have been even greater if not for the continued diligence of the Grants Office primary contacts in each state agency. Among the many success stories from this past year is the securing of 14 separate grants, by 5 different agencies, related to the Affordable Care Act (ACA/healthcare reform legislation) which will bring in $16.4 million in FY 12, increasing to $35.6 million in FY 13.This does not include ACA grant funds secured by organizations that are not part of state government.

Even with federal grants appearing to “stabilize” at $9.2 billion in FY 12--the same figure is anticipated in FY 13--there is the potential for additional changes as a result of the sequestration that was mandated in the Budget Control Act that passed in 2011 as part of the legislative package needed to increase the federal debt limit. While many people expect Congress to legislate changes after the November 2012 elections, if the current law is unchanged the result would be automatic reductions in most defense and non-defense discretionary spending of approximately 12% for the first nine months of 2013.

The defense cuts would show up more in procurement than in grants, and some of the largest domestic grant programs where the state receives funds were exempted, but the result of thesequestration actually taking effect would have an unprecedented impact on many of the grants listed in this publication.

On a very positive note, the most recent federal Single Audit for the State of Maryland lists only 11 new audit findings for the most recent fiscal year ending in June, 2011. This is a dramatic reduction from the 18 new audit findings in the previous year’s report, something that can be attributed to an increase in audit avoidance training provided by the Grants Office to state agency staff.

The majority of the federal grant data in this report is provided by State agencies. The report also continues to rely on information provided by both the U.S Census Bureau and USASpending.gov, which tracksall federal funds going to Maryland. This includes grants received by State agencies as well as federal grants received directly by local governments, non-profit organizations, and universities. This also includes data on all federal funds, grants being just one of five categories.

USASpending.gov is poised to take over the official reporting on federal spendingas the Census Bureau has stated that the most recent Consolidated Federal Funds Report (CFFR) will be their last.

Because this is the final CFFR report, we have included more detailed data on federal grant funds going to individual counties, and comparisons of Maryland grants dollars by program with other states, not knowing if it will be possible to provide this information in future years.

To accurately measure all federal funds benefiting Maryland, all categories of federal funding, not just grant funds, should be reviewed. Federal funds flow to states through five primary categories:

  • Retirement & disability (primarily Social Security)
  • Direct payments (primarily Medicare)
  • Procurement (purchase of goods and services)
  • Salaries & wages
  • Grants

The following chart lists the level of funding Maryland received in FFY 2010, by category:

TOTAL FEDERAL FUNDS TO MARYLAND

Federal Fiscal Year 2010

Category / $ Amount / % of Total
Procurement / 26.5 billion / 27.2
Retirement/Disability / 19.1 billion / 19.9
Salaries/Wages / 15.1 billion / 15.6
Other Direct Payments / 21.1 billion / 21.9
Grants / 14.4 billion / 15.0
Total $ / 96.2 billion / 100%

Maryland is ranked #3 among the 50 states in per capita amount of federal government expenditure, due in large part to our #2 ranking in procurement. Using Maryland's total population of

5,828,289 (as of January 17, 2012), and the hypothetical situation of these funds being evenly allocated to each Maryland resident, the following chart shows per capita federal funds coming back into Maryland.

PER CAPITA FEDERAL FUNDS TO MARYLAND

Federal Fiscal Year 2010

Category / $ Amount / Rank Among the 50States
Procurement / 4,593.79 / 2
Retirement/Disability / 3,311.41 / 14
Salaries/Wages / 2,605.24 / 4
Other Direct Payments / 3,661.00 / 4
Grants / 2,501.30 / 15
Total $ / 16,677.74 / 3

The following is a partial list of activities coordinated by the Grants Office:

Website:

  • Consolidated information on new federal grant opportunities, state grants (including an e-mail notifier option, a new addition last year), foundation grants, grants training (many via webinar, greatly expanded this year), federal procurement, and state agency points of contact.

State Agency Grants Team

  • Cabinet Secretaries designate primary points of contact for the Grants Office.
  • Points of contact serve as subject experts and entry points within each agency for all grant questions. They review grant formula issues and assist the Governor’s Washington, D.C. office in maintaining relationships with federal decision-makers on grant issues.

Publications

  • Annual Report: Federal Funds to Maryland State Agencies. This is the office’s 9thAnnual Report (now entirely on-line), which documents 508 federal grants received by MarylandState agencies.
  • Governor’s Grants Office News. Electronic newsletter emailed to listserv of more than 4,000Maryland constituents to inform them about grants issues and grants training opportunities.

Grants Training

  • Free Training Sessions: topics including researching grant opportunities, grant writing, grant budgeting, and procurement have been expanded to train non-profit and community-based organizations throughout Maryland. Additionally, advanced grants management trainings addressing post-award issues are being delivered by national and federal content experts. Many recorded trainings conducted via webinar are available to view at any time on the Grants Office website.
  • Technical Assistance: technical assistance has been provided directly to state agencies and multiple local jurisdictions, including through the Maryland Municipal League and the Maryland Association of Counties. In addition, increased levels of technical assistance have been provided to non-profit and community-based organizations.

Foundations

  • The Grants Office has worked with Maryland foundations (particularly the community foundations) to improve collaboration between state agencies and grant makers, in addition to making presentations to national foundations interested in replicating the Maryland model.

In all sections it is important to recognize differences between the state fiscal year (July 1 – June 30) and the federal fiscal year (October 1 – September 30). When data is obtained from state agencies this is based on state fiscal years but when data comes from Census or USASpending.gov this is based on federal fiscal years.

Comparisons to Other States and Factors Influencing the Flow of Federal Funds describes many of the reasons why the Maryland federal fund numbers often differ from the national averages, along with two new spreadsheets comparing Maryland grant figures in more than 200 programs to those of other states.

State Agency Comparisonsincludeschanges in total federal grant dollars, percentage changes, and the number of grants received.

Federal Funds to Maryland by County summarizes federal fund flows in each of the five spending categories for each county, and includes new spreadsheets listing specific grant programs and dollar totals by county.

Federal Grant Audits discusses another performance measure for the Grants Office, highlighting an improving trend of fewer new audit findings.

Federal Procurement provides details in a category of federal spending where Maryland traditionally does much better than the national average, with overall figures far exceeding what we receive from federal grants.

Foundation Funds to Marylandincludes data on 1,400 foundations headquartered in Maryland.

Governor’s Policy Goals describes how the federal grants obtained by state agencies are addressing specific state policy goals.

Grant Totals and Grant Listings by State Agency provides summary information that also identifies the ARRA grants and the new Affordable Care Act grants.

Federal Grants by State Agency makes up the bulk of the report, providing descriptions of federal grant programs and dollars received by each state agency.

State Agency Grants Contact lists the primary state agency points of contact for the Governor’s Grants Office.

The following chart lists state agencies by the level of federal funding each received in FY 2011, along with the number of active grants.

TOTAL FEDERAL GRANT FUNDS & NUMBER OF GRANT PROGRAMS BY STATE AGENCY (thousands)

Fiscal Year 2012

Maryland State Agency / Office $ Funds ( # Programs )

Health & Mental Hygiene (DHMH) 4,571,075 (78)

Human Resources (DHR) 1,926,722 (32)

Education (MSDE) 932,039 (62)

Transportation (MDOT) 881,919 (36)

Housing & Comm Dev (DHCD) 247,775 (8)

Labor, Licensing & Reg (DLLR) 182,216 (32)

Emergency Management(MEMA) 97,778 (16)

Environment (MDE) 91,934 (41)

Information Technology (DoIT) 48,863 (1)

Natural Resources (DNR) 36,106 (44)

Gov’s Ofc Crime Ctrl & Prevent (GOCCP) 32,037 (21)

Public Safety & Correct Services (DPSCS) 31,185 (11)

Aging (MDoA) 31,015 (21)

Veterans Affairs (MDVA) 13,197 (4)

MD Energy Administration (MEA) 12,736 (9)

Business & Econ Development (DBED) 6,513 (5)

Gov’s Ofc of Community Initiatives (GOCI) 5,536 (8)

Agriculture (MDA) 4,874 (14)

Juvenile Services (DJS) 4,216 (5)

MD Higher Education Comm (MHEC) 3,365 (8)

Board of Elections 2,962 (1)

MD Health Ins. Plan (MHIP) 2,852 (1)

Disabilities (MDOD) 2,246 (3)

Attorney General (OAG) 2,012 (2)

Insurance (MIA) 1,952 (2)

State Police (MSP) 1,392 (13)

Planning (MDP) 1,171 (10)

General Services (DGS) 1,052 (1)

Judiciary 955 (4)

Public Service Commission 821 (2)

Maryland Environmental Service (MES) 717 (3)

Human Relations Commission 636 (2)

MD Public Broadcasting Corp (MPT) 575 (2)

Governor’s Office for Children (GOC) 550 (1)

Archives 296 (3)

MD Inst Emerg Medical Srv Sys (MIEMSS) 209 (1)

Historic St. Mary’s Commission 67 (1)

Total Federal Grant Funds To MD $ 9,181,568 (508)

Federal grants, with a few exceptions, are identified by a Catalogue of Federal Domestic Assistance (CFDA) number assigned by the federal government. CFDA numbers are included throughout the Annual Report. The first two digits identify the federal agency from which the grant originates. The next three digits identify the specific grant within each agency. The website includes more information on all CFDA numbers, including those created for ARRA programs:

The legend below assists in identifying federal grant funding sources by CFDA number, as state agencies often obtain funding from multiple federal agencies:

CFDANumberRangeCorresponding Federal Agency

10.001-10.999 U.S. Department of Agriculture

13.000-13.999U.S. Department of Commerce

14.000-14.999U.S. Department of Hous & Urban Dev

15.000-15.999U.S. Department of the Interior

16.000-16.999U.S. Department of Justice

17.000-17.999U.S. Department of Labor

19.000-19.999U.S. Department of State

20.000-20.999U.S. Department of Transportation

21.000-21.999U.S. Department of the Treasury

23.000-23.999Appalachian Regional Commission

27.000-27.999Office of Personnel Management

30.000-30.999Equal Employment Opportunity Comm

34.000-34.999Federal Mediation and Conciliation

39.000-39.999General Services Administration

45.000-45.999Nat’l Foundation on Arts & Humanities

47.000-47.999National Science Foundation

59.000-59.999Small Business Administration

64.000-64.999U.S. Veterans Administration

66.000-66.999U.S. Environmental Protection Agency

81.000-81.999U.S. Department of Energy

83.000-83.999Federal Emergency Management

84.000-84.999U.S. Department of Education

89.000-89.999National Archive and Records Admin

93.000-93.999U.S. Department of Health & Hum Serv

94.000-94.999Corporation for Nat’l and Commun

96.000-96.999Social Security Administration

97.000-97.999U.S. Department of Homeland Security

You can keep watch on What’s New at the Governor’s Grants Office and sign up for grants notices and our newsletter from our homepage. Contact us at 410-974-5090 or .

Eric Brenner, Director

Governor’s Grants Office