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Wednesday, Feb. 4, 2009

Calvert, Charles and St. Mary's counties would receive more than $24 million for school programs over the next two years if President Barack Obama and congressional Democrats can push the current version of the controversial American Recovery and Reinvestment Act of 2009 through the Senate this week, according to U.S. Rep. Steny H. Hoyer (D-Md., 5th).

The House majority leader told Southern Maryland officials about the bill's local impact in a press conference Friday at the new Calvert Middle School construction site in Prince Frederick, a project that could receive funding from the bill.

The legislation would direct more than $800 billion to states for infrastructure, construction and education.

The bill passed in the House of Representatives last week 244-188, but without any Republican support.

The Senate is expected to vote this week.

The bill combines government investment and tax relief for families to create jobs and spur economic growth.

While education construction, modernization, Title I and Individuals with Disabilities Education Act money are a major component of the bill, with $294 million budgeted for Maryland schools, it includes $3.5 billion for Maryland general fiscal relief, job training, education, social service, and justice programs, and $782 million for highway and bridge modernization, transit, and to support clean water infrastructure.

Funds for local school systems would come at a time when Gov. Martin O'Malley (D) has slashed money for them. St. Mary's public schools expects $2.5 million less in fiscal 2010 from the state than this year, while Charles is expecting $1.9 million less.

The Charles and St. Mary's cuts are on top of varying cuts anticipated by local governments.

"Communities across our state and our nation are suffering," Hoyer said. "And, with a declining tax base and a state that is confronting a $2 billion shortfall, restricting government's ability to provide critical services and fund programs, putting localities in an increasingly difficult position. This month, I think, will go down in our history as a turning point for our nation."

Calvert County would receive $1.2 million over the next two years specifically for school modernization and construction, $2.8 million for Charles County and $2.3 million for St. Mary's County. Calvert would receive $760,000 in Title One funding for disabled and poor students, Charles would get $1.7 million, and St. Mary's $1.6 million.

The bill could change in the Senate and none of the funds have been officially committed to any projects.

The new Calvert Middle School construction underway, for example, is a $23.4 million project adjacent to the campus of the current Calvert High School to completely replace the school located on Dares Beach Road and expand student capacity. After the state's initial fiscal 2009 contribution of $7.6 million and local contributions of $8.2 million, the Interagency Committee on School Construction recommended another $5.1 million to the state Board of Public Works, which was approved last week. Calvert County public schools has also requested $3.7 million for the first phase of a $57.7 million project to replace and expand capacity at Calvert High School, Calvert schools spokeswoman Gail Bennett said.

Federal money would allow the Calvert school system to finish Calvert Middle on time and begin modernization of Calvert High.

"The reality of the current recession has also meant that priorities, such as these school construction projects, are in jeopardy," Hoyer said in a later statement.

"This is the kind of federal investment that everyone can stand behind. I believe it is a fact that when any level of government puts money into school buildings, it's a good investment," said Jack Smith, superintendent for Calvert County Public Schools.

"It's projects like this that will really give us what we need to keep them moving," said Calvert County commissioners' President Wilson Parran (D), noting the funding will help close a budget gap the state owes of about $1.2 million on the Calvert Middle project.

"Collectively, my biggest concern is that we don't backslide in terms of any of the services to ensure we sustain academic achievement in the future," said Michael Martirano, superintendent for St. Mary's County Public Schools. "The stimulus dollars will help prevent further cuts in services."

Martirano noted funds would be directed to fully funding "shovel-ready projects" such as the renovation of Leonardtown Middle School, and replacing the HVAC system at Greenview Knolls Elementary.

Charles County Schools Superintendent James E. Richmond said in a Web video address Friday that "the governor is hopeful that Maryland will receive some relief through the federal government stimulus package, but we do not know the direct impact it will have on the school system."

A breakdown of programs by county other than for education was not available, said Stephanie Lundberg, a Hoyer spokeswoman, because distribution methods vary by program.

"Some programs flow through states with a state formula distributing funds among localities, like the education funding; other programs flow through states with a grant process for localities; other programs go directly to localities by formula; others go to localities through federal grants," she said. "Local governments will get funds through the programs funded in the recovery package through the same process they do normally. The only difference is that we are placing more accountability and transparency on state governments on how they distribute the money that flows through the state, with directives to distribute it quickly."

The funds could also be used to support infrastructure projects that haven't already gone through a review process or aren't priority initiatives, but states must give preference to projects — and obligate 50 percent of total funds — that can be awarded contracts within 120 days and are on the state plan. Some of the transit funds will be distributed directly to localities.

Hoyer assured officials the allocations were not earmarks and were based on a specific formula.

Even with the passage of the proposed package, unemployment rates are expected to rise to between 8 and 9 percent this year, but without it, could rise to nearly 12 percent, according to a House Appropriations Committee summary of the bill. Last month, Maryland lost 9,800 jobs and Maryland's unemployment rate reached its highest level in more than 15 years at 5.8 percent, according to the U.S. Bureau of Labor Statistics. Hoyer said the bill is expected to create or save 99,000 jobs in the state.

Supporters of the legislation, including Hoyer, said transparency and accountability of funds allocated through the bill are unprecedented. Obama (D) announced in a YouTube address last week that he will create a Web site to track money at www.recovery.gov.

Staff writer Gretchen Phillips contributed to this report.

kkulp@somdnews.com

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