LEO tells appropriations subcommittee how work projects, federal grants are managed and spent

Members of the House Appropriations Subcommittee on Labor and Economic Opportunity heard a presentation from Department of Labor and Economic Opportunity officials about the agency’s use of one-time “work projects,” major program spending and how federal grants and matching requirements are managed. The presentation took place during the subcommittee’s public meeting; the date was not specified in the record.

A work project is “a one-time, nonrecurring effort designed to achieve specific goals,” Greg Rivett, chief administrative officer for the Department of Labor and Economic Opportunity, told the committee, citing MCL 18.1451a as the statutory vehicle that allows agencies to carry authorization and dollars forward across fiscal years for up to 48 months when approved by the State Budget Office. Rivett said agencies must submit a specific plan, identified costs and an estimated completion date to qualify for a work project.

Rivett said LEO placed 21 new work projects into place in the prior fiscal year; about 70% of those funds are already obligated, 22% expended and roughly 8% unobligated and in the RFP/grant process. He told the committee that work projects are commonly used so grantees can operate on multi-year schedules and because LEO’s grants are reimbursement-based.

The department highlighted several large work projects. The Going Pro…