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The Stimulus Numbers Game

on February 26, 2009
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The economic stimulus package has started a numbers game that is confusing and constantly changing. The numbers have been splashed across newspapers, TV stations and Web sites for the past month. All the talk has brought up different questions and different answers.

The federal departments know how much they will receive of the $787 billion and are now reporting the preliminary funds that they will distribute to each state. Those numbers will probably change, but the picture is becoming a little clearer.

Education funding is sprinkled throughout the 407-page bill, showing up not just under the Department of Education, but also under other programs including food and nutrition for children (the National School Lunch Program) and the modernization of academic research facilities.

Even the $98.24 billion listed under the Education Department does not all go to the department. Of the $53.6 billion in the State Fiscal Stabilization Fund, $8.8 billion goes to block grants that can fund key services, and $5 billion goes to incentive grants for which states have to apply. The Office of the Inspector General receives $14,000 from the education fund.

The Center on Budget and Policy uses the number $44.62 billion as the amount that the department receives. That number does not include any of the funds listed above.

The department has not released state, Indian and U.S. territory breakdowns for six programs, but did release the breakdown for $72.24 billion worth of programs on Feb. 19. The big winners include California with $8.56 billion, Texas with $6.05 billion and New York with $4.85 billion.

The Money Trail

The states receive funding for current programs through existing formulas, but the new stabilization fund will be distributed by state population. The department will allocate 61 percent of the block grants based on the number of state residents between ages 5 and 24 and will allocate the remaining 39 percent by total population, according to the center.

Governors have to apply for stabilization funds, unlike the program funding. They need to promise the federal government that they will keep spending as much money from their coffers on education through fiscal year 2011 as they spent in fiscal year 2006.

They also need to fairly distribute teachers throughout their states, track student progress through a data system that meets federal requirements, boost student academic performance through better tests and standards; and improve low-performing schools.

The department has already allocated the stabilization funds for each state, but they will not give states the funds until they approve the governors' applications. Once state governments receive the block grants, they must spend 81.8 percent of the funds on education and can spend 18.2 percent where they need it.

Check out the top 10 states that received department funding below.

The Top 10

  1. California: $8.56 billion
  2. Texas: $6.05 billion
  3. New York: $4.85 billion
  4. Florida: $3.94 billion
  5. Illinois: $3.08 billion
  6. Pennsylvania: $2.82 billion
  7. Ohio: $2.68 billion
  8. Michigan: 2.46 billion
  9. Georgia: $2.28 billion
  10. North Carolina: $2.06 billion



For the preliminary state breakdown of education funds, visit the U.S. Department of Education.

For the economic stimulus law, visit the American Recovery and Reinvestment Tax Act of 2009.

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