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State Budgets and Federal Stimulus: a First Look

by Eric Karolak
July/August 2009
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Article Link: http://www.childcareexchange.com/article/state-budgets-and-federal-stimulus-a-first-look/5018876/

Our nation has slipped into a recession greater and deeper than anyone expected. At least 47 states are grappling with budget shortfalls, and 46 states already anticipate problems into 2010 and 2011. State legislatures have the daunting task of balancing budgets as revenues drop and the need for services increases. This isn’t just about spreadsheets and calculations. It’s about real people.

Whether you participate in a child care subsidy program or the state-funded Pre-K program, receive training from an R&R, or participate in the state quality rating system, what happens to public funding for child care and early learning affects you and our industry.

The American Recovery and Reinvestment Act

A new factor in public funding is the American Recovery and Reinvestment Act (ARRA) of 2009, enacted in February, which provides $787 billion to the states " much of it to plug holes, create jobs, and support infrastructure projects. Advocates pushed hard and succeeded in getting $2 billion included for the Child Care and Development Block Grant. Parents can’t work without
child care, we told Congress.

Recovery Act funds get worked into the ‘math’ of the state budgets. As of June 1, many states still had not made public how they planned to ...

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