Have you wondered why we don't see more job growth under the economic stimulus program? One reason is that states are using half of $8.8 billion dollars to plug budget deficits. In all, the Department of Education is disbursing $56.6 billion to the states with few requirements as to how the money is spent.
Here's a breakdown of some of the projects being funded:
- 39 states drained their budget reserves by making spending cuts. State officials claim that using the stimulus money to plug budget deficits will save jobs. Without the money, budget cuts would be more widespread, thus creating more unemployment.
- California, North Carolina, and Rhode Island are using their funds for general budget items like education, public assistance, transportation, and water projects.
- Utah is spending $15 million on motion picture incentive projects, giving cash rebates to film producers.
- North Carolina is using 3.8% of $19 million to administer funds for the American Indian Language Preservation project.
- Nevada has earmarked 70% of its funds for tax relief for seniors.
- Florida, Michigan, Nevada, and Oregon have not yet decided how they will use their funds.
- Vermont is saving 50% of its money for use next year.
So far, the Department of Education has appropriated funds to 42 states and territories.
While the Department of Education's $56.6 billion is only 14% of the total $787 billion dollars, we can get a glimpse of where this money is going. Much of it is going to plug budget deficits for the states. Whether or not this is a good thing is up for debate.
Do you believe that this money is being spent wisely?
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Reader Comments (Page 1 of 1)
7-09-2009 @ 2:56PM
Mike said...
No