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As local and state governments begin to report their use of the American Recovery and Reinvestment Act (ARRA) funds, critics and supporters of the stimulus package are debating how effective it has been in improving the economy, according to a new report from the Washington-based International City/County Management Association (ICMA). To best measure the effectiveness, "Measuring the Results of Economic Stimulus Investments: Local Government Leading the Way" proposes that local governments rely on uniform outcome measures that draw on commonly collected data at the local level. It also offers specific metrics to help evaluate ARRA-related projects' outcomes.

The $787 billion ARRA, passed in February, included $280 billion in programs and projects administered through states and local governments. Questions remain about the effects of the stimulus and whether government expenditures are being properly cataloged and assessed, according to ICMA. "The scale and attention afforded to the stimulus and the prominent role of local government in its implementation makes this a rare opportunity for local governments to demonstrate their value as an intergovernmental partner," said ICMA Executive Director Robert O'Neill. "The ability of cities and counties individually and collectively to answer the question of lasting benefits not only will allow them to demonstrate progress on persistent local concerns but it also will enhance the value of local governments as program partners with the federal government."

Initial reports submitted this month on how the money has been spent focus on jobs created or retained, project oversight, and the avoidance of waste, fraud and abuse, with relatively little attention directed to actual outcomes, according to ICMA. ICMA proposes that the ARRA's effectiveness can be measured in terms of homelessness prevention, broadband initiatives, crime and public safety, energy efficiency, public housing, transit, street resurfacing, and water and sewer services.