Some States Get Stimulus Whether They Need or Want It

Somehow, just somehow, we doubt that even a single governor will turn down the stimulus money. Anyone want to bet? :) This article illustrates the unevenness of the fiscal landscape from state to state and discusses some potential alignment issues between where the money will go and where it is needed:

Close to three-quarters of the money in the stabilization fund is designated for states to funnel to public colleges and school districts, which could use the money in various ways, including to restore budget cuts, prevent layoffs, or modernize facilities. The rest of the money in the bill will be given to governors to allocate to high-priority needs, which could include construction money for public or private colleges, and to the secretary of education to reward performance. President Obama is expected to sign the $787-billion stimulus plan on Tuesday.

The federal stimulus money that will be spent in states that are not facing a severe economic crisis could still play an important role in reducing unemployment rates if, for instance, the money from the stabilization fund were to be spent on modernizing college or school facilities, thus creating construction jobs. It could also help lessen the effects on colleges and schools of any budget cuts states might have to make down the road if their economic situations worsen.