Stimulus Funding Working, At Least in Two States

The Center for Budget and Policy Priorities has a new report on how states are using the stimulus funding. The report includes information from a number of states, but looks closely at Virginia and New York and found that "just a few months after enactment of the American Recovery and Reinvestment Act, federal fiscal assistance for state governments has begun to have its intended impacts. It has enabled states to close their large budget shortfalls with smaller cuts in education, health care, and other important services than would have occurred had the federal government not provided this assistance. This, in turn, has helped preserve many key programs that serve states’ most vulnerable residents. It also has lessened the damage to state economies that comes when states sharply reduce spending in a recession. In short, federal assistance has helped change the state budget equation for the better." For guidance on using the stimulus funding.