The size of the federal stimulus package is unprecedented, and so, too, the number and size of projects it is expected to generate in such a short period of time. With time of the essence, can public agencies use this funding quickly and responsibly, while ensuring transparency and accountability? Yes, with a portfolio management framework that balances the need for speed with governance and oversight.
With the U.S. federal stimulus package now approved, state governments have started receiving the first of a large influx of capital to spend on projects with the primary aim of creating jobs and spurring economic activity. This approach to stimulus has not been without controversy: some have argued that spending such large sums of money by government, which does not have a good history of spending and programs, would lead to much waste. To alleviate some of this criticism, the new administration has promised new levels of accountability, oversight and transparency in the functioning of government, and in how these funds are spent.
Most economists agree that immediate government intervention is necessary to restart the economy, but the stimulus approach will only be effective if funds are spent responsibly and quickly. Cautious or wasteful spending will fail to revive the economy and will add substantial debt burden for future generations, so as a result it is