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Growing Economy

Recovery Resources Update

ProPublica has created a new site, Eye on the Stimulus, to track developments in the recovery package around the country.  The organization is also working with the morning news program The Takeaway and WNYC in creating Shovel Watch, a project to combine investigative reporting and public comments to help monitor recovery money from "bills to building."

A broad coalition of groups have signed onto these Principles for State Implementation of ARRA, which emphasize directing funds to benefit those hurt most by the recession and assuring that funds are spent in an open and accountable manner.

Tracking the recession: Stimulus holds states accountable

“State leaders face real change, as promised by President Obama. States will need to collect data from agencies, from contractors, from subcontractors, that they have never collected before,” said Nathan Newman, interim executive director of the Progressive States Network, a research group based in New York whose members include many state policymakers.

Stimulus Resources Update

We've added to the resources we detailed this past Monday, Implementing the Recovery Plan: A Resource Guide for State Legislators and Advocates

Overviews:  
The Council on State Governments has created StateRecovery.org to identify opportunities for states to get federal assistance and track programs and efforts to implement the recovery plan in each state.

Implementing the Recovery Plan: A Resource Guide for State Legislators and Advocates

Recognizing the severity of the economic crisis our nation faces, President Obama this week signed the landmark American Recovery and Reinvestment Act, a plan aimed at "restoring or saving" 3.5 million jobs and investing in the long-term future of the American economy.  

Built into the plan is a recognition that, while the federal government will assist in funding the work, the implementation of the plan will rest mostly with the states.  This Dispatch provides facts, guidance and a collection of resources to state leaders and advocates on how to implement the recovery plan in a strategic manner that strengthens our states and honors our progressive values.

Recovery Deal Reached; State Aid Slashed Compared to House Bill

Negotiators between the Senate and House approved a deal late Wednesday night for a recovery package.  The good news is that the Senate agreed to a significant recovery package at all, since at one time the legislation faced the threat of a filibuster that would have blocked almost all stimulus spending approved in the original House bill.

While all details of the full compromise between the House and Senate have not been released, the best news for state governments facing deficits is:

Economic Recovery Plan will Cover Less Than Half of Projected State Deficits

While groups like the American Legislative Exchange Council (ALEC) have condemned federal help for state governments in the recovery package, most analysts recognize that state spending is going to be the most immediate stimulus available for reviving the national economy.

 

Unfortunately, as a new study by the Center on Budget and Policy Priorities details, while state deficits are projected to be $350 billion over the next 30 months, the House recovery plan just approved includes only about $150 to $155 billion that can be used to address those shortfalls, meaning that 55% to 60% of projected state deficits will remain.