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Federal Funding for State Innovation

Federal Recovery Efforts Saved 8.5 Million Jobs, Stopped Depression

When big bank speculation crashed the economy, millions were driven into unemployment.  But, according to a new study by two leading economists, the combination of the Troubled Asset Relief Program (TARP) loans to banks, loosening of the money supply, and federal stimulus funds for states and individuals, helped stop a far worse potential full-out Depression that would have left an additional 8.5 million Americans without jobs on top of the 8 million who have lost their jobs since the recession started-- what would have been a nearly doubling of the job loss due to the economic crisis.

State Job Creation Strategies for 2011

The fundamental challenge in this recession is that the growth that preceded it was a mirage.  Bubble era borrowing created a network of financial jobs, real estate jobs and construction jobs that collapsed with the end of the bubble.  Many of those jobs will never return.

An extremely high proportion (75%) of job losses in this recession are permanent rather than temporary.  States will need to nurture completely new industry sectors and the infrastructure to support those jobs, while the jobless will need retraining in new skills to participate in those sectors.

US: States Struggle to Pass Budgets Without Stimulus

NEW YORK - For at least 30 cash-strapped states counting on federal stimulus money, the news was a stunning blow: A deficit-weary Congress had rejected billions in additional aid, forcing lawmakers into a mad scramble to balance their budgets.

Now, with a new fiscal year just days away in most states, many governors are proposing to make up for the shortfall with tax increases, cuts in essential services and potential layoffs of thousands of public employees.

State Broadband Awardees May Apply For Additional Funds

State governments may seek additional funding for up to three additional years on broadband projects. The announcement comes from the National Telecommunications and Information Administration (NTIA) who recognized that "better data and strategic planning are needed on the state level.

Recovery Act Boosting Economic Performance and Providing Middle Class Tax Relief

The Council of Economic Advisers (CEA) recently released its third quarterly report on the impact of the American Recovery and Reinvestment Act (ARRA).  The report generally confirms what economists across the board have concluded: the Recovery Act has prevented a full economic collapse; generated millions of jobs; boosted national economic performance; and provided sorely needed state fiscal relief.