RSS FeedLt. Governor Diane Denish came to town on April 1 to explain opportunities for rural communities through the American Recovery and Reinvestment Act at a town hall meeting held at the Grants Senior Citizens Center.
 Lt. Governor Diane Denish and retired Sen. Joe Fidel at the Cibola Senior Center. BEACON / DONALD JARAMILLO |
In introducing Denish, Mayor Joe Murrietta cited her experience as a small businesswoman and her support for education.
Before launching into the explanation of various aspects of the law, which could benefit Cibola County, Denish honored Kenneth King for 50 years of service as a volunteer fire fighter in Grants. She read a congratulatory message from Governor Bill Richardson and presented King with a certificate and a New Mexico flag in a case. In accepting the award, King joked, “It's not everyday that a person gets this kind of honor, especially on April Fools Day.”
The Lt. Governor related that she had stressed to the governor the importance of funneling money from the federal government to rural communities as well as the cities.
“New Mexico will receive $1.8 billion in stimulus funds to be spent over the next 18 months to two years, but there is also $74 billion in federal grant funds, which will be awarded on a competitive basis across the country,” she explained.
“The point of all these funds is to retain jobs, create jobs and provide health care services,” Denish noted. “The term 'shovel ready' has become a popular way to describe the stimulus funds, but the term 'cooperative and collaborative' will apply to the grant funds. For example, if five non-profit organizations can collaborate on a grant proposal, it will have a better chance of being approved.”
Denish recommended that grant applicants work with councils of government, local governments and the Congressional delegation in formulating their proposals.
Kathy Keith of the New Mexico Community Foundation broke down the benefits for individuals and businesses through the American Recovery and Reinvestment Act in terms of tax credits and deductions.
“Individuals will see tax relief in the new Make Work Pay tax credit, benefits for seniors and the disabled, benefits for retired teachers, new car deductions, deduction for first time homebuyers and an expansion of the earned income tax credit. There are also provisions for increased unemployment benefits, relief from the Alternative Minimum Tax, more liberal child tax credits and tax relief for laid-off workers.
“There will be an increase in the Pell Grants Program for higher education and increased access to healthcare for Native Americans as well,” she said.
Businesses can see relief in the form of bonus depreciation, carryback of net operating losses and deferral of taxes on “cancellation of debt” income. There will also be robust funding of various loan programs for businesses.
The legislation also includes monies for funding schools and healthcare. The state will receive $630 million to fund Medicaid and $260 million to be distributed to school districts.
Included in the education funding will be $23 million for Early Childhood Education, $105 for districts with poor children, $97 million for special education, $5.1 million for state, district and school efforts to incorporate technology into the curriculum, and $58 million for the governor's Modernization and Repair Plan.
Other elements of the plan include funding for housing and community development, energy efficiency and weatherization, workforce training, public safety, childcare and the arts.
Keith said that Grants just qualifies for many of the federal grants targeting communities with a population of 10,000 or less. She added that tribal governments will receive the funds earmarked for them directly from the federal government.
“Most applicants for the grant funds will be non-profit organizations and local and tribal governments, Keith remarked.
There will be more news on the stimulus package in next Tuesday's Beacon.
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