INDIANAPOLIS – What are insiders seeing in the nation’s Capital these days? “A level of energy and activity that hasn’t been seen in Washington in quite some time,” according to Ed Dougherty, senior vice president of B&D Consulting.

Dougherty, whose firm is the D.C.-based advocacy and advisory arm of the Indiana law firm of Baker & Daniels, was in town for an Indiana Chamber of Commerce -sponsored day-long series on the American Recovery and Reinvestment Act (ARRA).

With an eye-popping $700+ billion on the federal table, one cannot help but be attracted to a presentation titled, “The Stimulus Business: Money, Jobs and Business Opportunities.” But while Dougherty described the atmosphere around Washington as having “a frenetic sense of urgency in Congressional hallways,” the B&D attorneys and legislative analysts pointed out what many already feared: if your organization hasn’t already gotten in line for the formulaic funding opportunities, the odds were quickly mounting up that the federal well would run dry before you could mobilize your resources.

Even if this is case, all is not lost, Dougherty told the crowd of 300 Hoosier hospital administrators, public television executives, university executives and others attending the downtown Indy conference.

In his opening remarks, Dougherty emphasized that it is “important to think of the Stimulus [activities] as part of a broader cascade.” He outlined how the federal government had barely 24 months to distribute more than 70% of $747 billion available through ARRA. “We’re really only at the very beginning,” he said.

The full impact of the massive and unprecedented level of federal funding will probably not be fully measurable for years, perhaps decades, although Congress and the Obama Administration are requiring unparalleled levels of accountability and transparency in how the funds are being disbursed and spent. With about $500 billion in new activities and new spending in the ARRA, about $250 billion is being shoveled out directly to the 50 states. That may have mixed results, as Dougherty warned that the “states have not had the resources to put plans together.”

So if you missed the federal boat for Stimulus funding, what can you take away from the ARRA? “The Stimulus is as much about policy development as it is about getting dollars out into the community,” Dougherty said. He speculated that new areas of activity receiving federal ARRA funding “will likely receive future funding as [new federal] policies are developed.” While the ARRA funding opportunities for small businesses are all but non-existent, small and large businesses alike can expect to see new federal regulations coming out from these ARRA-spawned policy developments. “It’s certainly going to be a trying time for business,” the D.C.-based consultant cautioned.

As the conference progressed, other Indiana business and government leaders chipped in their views and thoughts. After being introduced by his former boss, Nate Feltman, the previous Indiana Secretary of Commerce (and now a partner with Baker & Daniels), Ryan Asberry of the Indiana Economic Development Corporation (IEDC) cleared up a few ARRA myths: “there is no federal ‘Stimulus check’ written to Indiana.”

Asberry pointed out how IEDC did not control or administer any of the estimated $4.3 billion ARRA earmarked for the Hoosier state, but the public-private agency did provide direct counsel and help in getting federal funds to Hoosier highways, infrastructure and other long-term projects.

Shortly after the ARRA was signed into law, Indiana Gov. Mitch Daniels directed potential Stimulus applicants to complete short project summaries and submit them into a special database managed by Ball State University. The unfortunate myth that resulted for some is the misperception that supplying information to the now-closed Ball State database was all that was needed to apply for funding. This is a myth, according to Asberry. The state used the database to quickly identify and assign potential projects (that met pre-existing criteria) to various state agencies like the Indiana Department of Transportation, who then contacted county and city elected bodies and administrators.

Despite this little burble for a few, millions of dollars are already en route for much-needed infrastructure or other long-term capital projects. The fact that Indiana had a balanced budget and no deficits going into the recession provided a unique advantage for the Hoosier state.

“Indiana is not in the [fiscal] hole that many of our neighboring states are,” Asberry explained. “Indiana doesn’t have to use Stimulus dollars to get out.”

Both Chamber and B&D officials encouraged attendees to “stay informed” as additional guidelines and policies continue to come out from federal agencies, paying particular attention to existing Web sites. All federal agency Web sites now have special sections detailing their involvement in ARRA funding and administration.

How will this all turn out? It’s still too early to tell, but Frank Swain, a B&D attorney and former counsel for the federal Small Business Administration, had this warning. Economists generally agree that a robust and productive U.S, economy can accommodate deficits amounting to between 2-3% of the U.S. Gross Domestic Product (GDP). This year, Swain cautioned, the fiscal deficits spawned by ARRA could reach a whopping 13% of U.S. GDP.

The upshot? We’re in uncharted territory. Of course, that’s why B&D is in business.

Go here for a direct link to this column on Chicago’s Midwest Business.