Early Indications on State Use of Education Stimulus Funds

May 15, 2009

Most states that have already decided how to allocate the education funds they're receiving from the federal stimulus package are directing the bulk of the money to elementary and secondary education, according to an analysis of 13 states by the New America Foundation. The group's analysis, which is based on applications that the Education Department has already approved for how states plan to use the State Fiscal Stabilization Fund, largely mirrors the (somewhat diminished) expectations of college officials that the recovery package would totally bail them out of financial trouble. New America's analysis shows that while states such as Oregon and Georgia will use significant portions of their stabilization funds on higher education, several others are planning to spend virtually every penny on K-12.

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