In March, Secretary Tom Ridge announced the creation of this Funding Task Force, comprised of state, local, municipal and tribal leaders, after recognizing that the current system was not efficiently distributing the unprecedented amount of homeland security funds totaling over $8 billion that has been awarded over the past two years. The task force focused on three core areas: examining the funding process to understand why there have been delays; examining and cataloging best practices; and providing specific recommendations to eliminate choke points that impede the timely distribution of funds.

"The work done by this task force is truly a unique effort and demonstrates the commitment by all levels of government to work through a very complex situation," said Secretary Ridge.

"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. 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 Funding Task Force is a bipartisan group of officials selected by their national associations of state and local representatives and by the Homeland Security Advisory Council. The creation of this Task Force, utilizing the first-hand experience of leaders at all levels of government, is evidence of the shared commitment to continually improving this necessary and highly important process. During the last two months, the Funding Task Force met regularly and solicited input from numerous sources to create this final report.

The report underscores that no one issue or level of government has been responsible for the delays, but rather it appears that there are several independent issues that have compounded one another to slow the funding flow. This includes everything from procurement rules to backlogs of equipment orders from private sector homeland security vendors. The report also outlines a number of innovative best practices that select jurisdictions have put in place to support the procurement and delivery of emergency response equipment.

Findings and Recommendations

The Funding Task Force also made independent, objective recommendations for consideration by all agencies involved in the homeland security grants distribution process. The Department of Homeland Security will take under review and advisement the recommendations to determine what options may be viable in expediting the funding flow.

Summary of Findings:

• The reimbursement requirement under the grant program is problematic for many, particularly for cash-strapped local governments.
• The grant system has improved at all levels of government. For example, the Department of Homeland Security has further streamlined federal regulations and paperwork that state and local governments must fill out in order to access the funds.
• Ordinary procurement, legislative oversight and cash management processes cannot be relied upon in extraordinary times. At times, the need to rapidly procure and deploy homeland security-related equipment conflicts with state and local buying regulations and procurement procedures.
• The lack of national standards guiding the distribution, tracking, and oversight of 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 are often overwhelmed and understaffed to deal with the complex grant system and have not put the necessary infrastructure in place to deal with the increased workload.
• Communication gaps have existed between all levels of government.
• The management of 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.

Summary of Recommendations:

• Altering state and local legislative and procurement procedures to expedite accepting and spending homeland security funds.
• For certain FY’05 grants only, allow states and local governments to draw down grant money from the U.S. Treasury within 120 days before spending it, as opposed to the 3-5 days currently allowed.
• Establishing an Office of the Comptroller within the Department of Homeland Security to assume complete financial responsibility over grant programs.
• Further expanding the use of existing grant funds for overtime towards threat and risk specific security operations.
• Developing minimum staffing recommendations for state and local grant and program management personnel.
• Enhancing training and technical assistance to state and local officials involved in the management and distribution of homeland security grants.
• Standardizing terminology and use of a real-time grant tracking system at all levels of government.
• Compiling and disseminating best practices of funding flow systems in place to utilize these funds quickly and effectively.
• Establishing multi-state cooperative purchasing agreements to speed up purchasing and procurement times to get equipment faster.

"This report represents a consensus reached by governors, mayors, municipal officials, and first responders," said Governor Mitt Romney. "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. We will be asking Congress to implement these recommendations quickly in the legislation now pending."

"Our primary goal is to keep our country safe. To do that, we had to reach consensus on improving the funding mechanisms for those who take the lion's share of responsibility for homeland security---our first responders. I believe these recommendations help achieve that. I urge members of Congress to pass legislation implementing these thoughtful recommendations as soon as possible," said Mayor Donald Plusquellic.

The Funding Task Force has operated under the aegis of the Homeland Security Advisory Council (HSAC), a group of leaders from state and local governments, the emergency response community, academia and the private sector, who meet to deliver recommendations and expert advice to Secretary Ridge on homeland security issues.

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