Though state officials have faced difficult choices as they struggle to finalize 2010 budgets across the country, itâs clear the task would have been even more grim without a crucial infusion of federal money. According to the Center on Budget and Policy Priorities, as dire as the statesâ fiscal condition is – with dramatic revenue downturns leading in some cases to unprecedented service cuts – evidence shows this bad situation would be substantially worse if not for the $787 billion American Recovery and Reinvestment Act package enacted in February.
Al Gordon provides insight into the debate surrounding the efficacy of stimulus spending. “Americans seem to like simple arguments with simple solutions. Case in point: Recent polls indicate increasing concern over and opposition to the nationâs growing debt, despite the fact that there has been very good reasons for the added government spending. The economy
Al Gordon of NSI reports: “While the bulk of stimulus funding earmarked for state recovery efforts comes with conditions, a small amount comes with the freedom for officials to do with what they please. According to a recent report published by the Council of State Governments, states are spending $8.8 billion in discretionary funding in