Monthly Archive for November, 2009

What are Stimulus Dollars Stimulating?

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With all the federal stimulus dollars, why don’t I feel very stimulated?

Education in Utah received $293 million last year from the American Recovery and Reinvestment Act (ARRA).  The State had three years to expend these funds.  The State decided to use all the funds this year to “back fill” much of the deficit in State revenues.  In essence, the money really didn’t “stimulate” anything or anybody. It did postpone the consequences of decreases in available State funds. It was hoped that a large portion of these funds would create jobs and ultimately stimulate the economy through State and consumer spending.  Not much of this has happened.  Many jobs were saved due to ARRA funds, but few, if any, were created. Exceptions to this for most school districts in Utah are in the areas of special education and Title I.  They qualified for significant ARRA funds.

I don’t want to get into the politics of ARRA funds, but I do know that without these funds, cuts in education would have been much deeper.  For this, I am grateful.  Nevertheless, the nickname of “stimulus funds” leaves me with a puzzled feeling.