The Task Force on State and Local Homeland Security Funding presented its findings and recommendations to Department of Homeland Security Secretary Tom Ridge last week at a meeting held at the Secret Service Building in Washington, DC. The Task Force was charged with finding out the reasons for -- and suggesting solutions to -- the problem of federal funds not reaching local governments and first responders in a timely manner. 

The meeting was presided over by Joseph J. Grano, Jr., Chairman of the Homeland Security Advisory Committee (HSAC). Task Force Chairman Hon. Mitt Romney, Governor of Massachusetts, and Vice-Chairman Hon. Donald L. Plusquellic, Mayor of Akron, Ohio were joined by other Task Force members and key staff in presenting their report to Secretary Ridge and to members of the press, public, and homeland security community. 

Formed in March, 2004, the Task Force had a scant 60 days in which to define their objectives; survey local, State, and federal agencies; study the survey results; and formulate their findings and recommendations. The first problem that they discovered was that information was difficult to come by: very few agencies had quantified and organized any information about homeland security funding needs and efforts. 

The primary findings and recommendations, as set out in the report, are listed below. 

FINDINGS SUMMARY

• The reimbursement requirement under the grant program is problematic, especially for cash-strapped municipalities.
• Ordinary procurement and cash management processes cannot be relied on in extraordinary times. The need to procure and deploy homeland security-related equipment rapidly may conflict with State and local buying regulations and procurement procedures.
• Many State and local governments lack the purchasing power to obtain goods and services in a timely fashion.
• The lack of national standards for distributing, tracking, and overseeing homeland security-related grant funds contributes to delays in disbursement.
• While development of program guidelines and long-term operational plans is important, there are urgent security needs that must be addressed now, such as certain overtime reimbursement and risk-based funding.
• State and local governments often are too overwhelmed and understaffed to deal with the complex grant system. The necessary infrastructure may not be in place to deal with the increased workload.
• Communication gaps have existed between and among all levels of government.
• Managing expectations is a major issue: local jurisdictions have expectations that may be unrealistic given the limited amount of funding available.
• Unavoidable equipment backlogs and vendor delays have slowed the process.

RECOMMENDATIONS SUMMARY

• For FY05, exempt ODP homeland security grants from the Cash Management Act of 1990 to allow cash-strapped municipalities and counties to participate in the reimbursement process.
• Change State and local legislative and procurement procedures to allow expedited acceptance and spending of homeland security funds.
• Establish multi-state cooperative purchasing groups to speed the process and allow economies of scale.
• Establish standardized terminology and use of a real-time grant tracking system for grant management at all levels of government.
• Compile and disseminate information on best practices and innovations and encourage their use.
• Amend the federal grant regulations to allow grantees more flexibility in spending administrative funds.
• Expand and enhance training and technical assistance to State and local officials involved in the management and distribution of homeland security grants.
• Strongly encourage regionalization and cooperation, using the Urban Areas Security Initiative (UASI) Grant Program as an example.
• Establish an Office of the Comptroller within the Department of Homeland Security to assume complete financial responsibility over grant programs
• Encourage Congress to expand the use of State Homeland Security Grant Funds to allow jurisdictions to use such funds for operational costs.
• Establish a comprehensive risk assessment methodology to identify high-risk, high-consequence, critical infrastructure and major events. Allow grant funds to be used by jurisdictions when providing security for these infrastructures and events.

“We believe these recommendations, if rapidly implemented, will get these critical funds moving through the pipeline so we can do a better job protecting our communities,” said Governor Romney. “We will be asking Congress to implement these recommendations quickly in the legislation now pending.”

Task Force members took great pains to note that they did not discover that any single issue or any single entity at any level of government was responsible for delays. They also emphasized that this is a consensus report by local, State, and federal officials.

The Task Force’s efforts were not intended to be an exercise in finger-pointing, but rather an attempt to bring about improvements to the system, according to Mayor Plusquellic – who is anxious to see the fruits of the Task Force’s labors.

“I urge members of Congress to pass legislation implementing these thoughtful recommendations as soon as possible,” the Mayor added.

“These findings and recommendations reflect a tremendous amount of work done by Governor Mitt Romney, Mayor Don Plusquellic, and the 18 other members of the Funding Task Force,” said Secretary Ridge. “President Bush and I share their commitment to delivering Homeland Security funds quickly into the hands of those that need it to keep our hometowns safe and secure, and will work with all partners to further improve the funding system.”

The Department of Homeland Security now will review the Task Force’s findings and recommendations to determine what options will be useful in expediting flow of funds to the people who need to spend them to keep our nation safe.

Muphen R. Whitney

Miss Whitney brings a background in systems analysis, journalism, and marketing/communications to her work with ECON. For more than three decades she has provided marketing/communications consulting services and writing/editing services to companies in the high tech, biotech, financial, medical, and legal fields. 

Her recent work as Acting Executive Director of the Alliance for Homeland Security gave her invaluable background, experience, and contacts in the areas of homeland defense and security. Miss Whitney’s degree in Economics is from Columbia University (she began as a Biology major, however, and has maintained a lifelong interest in science, technology, and medicine).

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