$587M tabbed to help avoid cuts to education
Melinda Deslatte
The Associated Press
Published: Saturday, February 14, 2009
Updated: Saturday, February 14, 2009
Louisiana stands to receive an estimated $3.8 billion for education, health care and other services from the $787 billion economic stimulus bill that passed Congress on Friday.
Among the largest pools of money are $1.7 billion for Medicaid, $587 million to help the state avoid cuts to education programs and $455 million for road and bridge work, according to data from the Federal Funds Information for States, which was tracking the legislation for both the National Conference of State Legislatures and the National Governors Association.
The money will flow to the state over two to three years.
Louisiana officials are grappling with how the dollars can be used — and which pieces might help the state close a gap in next year's budget, which is projected to include $1.2 billion less in state general fund income than this year. The new fiscal year begins July 1, and lawmakers will craft that budget in the regular session that begins in April.
Gov. Bobby Jindal said he isn't sure the state will take all the money it's eligible to receive, depending on the strings attached.
"We're going to be looking very carefully at the restrictions and conditions attached to these dollars and programs before we recommend that we include those dollars in our budget. And I would certainly expect the Legislature to do the same thing as they review our budget before any of these dollars can be spent," Jindal said this week.
On Friday, the U.S. House approved the spending and tax cut package, which supporters said would help create and retain jobs and keep the country from sliding deeper into a recession.
The U.S. Senate approved the measure Friday evening.
Louisiana's senators split their vote: Democrat Mary Landrieu supported the measure; Republican David Vitter opposed it.
Only one of Louisiana's seven congressmen, Democrat Charlie Melancon, supported the measure.
"With so many people hurting, we can't afford to sit back and wait for the perfect solution to come along," Melancon said. "We must take bold action now to stop the downward spiral."
All the state's Republican congressmen — Rodney Alexander, Charles Boustany, Anh "Joseph" Cao, Bill Cassidy, John Fleming and Steve Scalise — voted against it. Republicans said the package contained too much unnecessary spending and not enough tax breaks.
"Liberal spending pet projects fail to create long-lasting, good-paying jobs. Rather, this bill creates thousands of new bureaucratic jobs, which will slow our system down even further," Boustany said in a statement.
While several states have tapped "czars" or hired outside help to oversee their stimulus spending, it was unclear Friday who would guide the spending in Louisiana.
Before many of the dollars can be spent, the Louisiana Legislature or the Legislature's joint budget committee will have to approve the spending. Some of the dollars will flow directly to local government agencies, however.
According to the preliminary review released by the Federal Funds Information for States, Louisiana could receive:
—$1.7 billion for the state's Medicaid program.
—$587 million in education dollars to help prevent layoffs and cutbacks.
—$130 million in flexible dollars to help stave off budget cuts.
—$455 million for road and bridge work.
—$269 million for high-need schools.
—$197 million for special education.
—$77 million for transit projects.
—$72 million for clean and drinking water projects.
—$53 million for state and local law enforcement to hire officers and purchase equipment.
—$27 million for homelessness prevention.
—$16 million for the Head Start program.
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