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The American Recovery and Reinvestment Act, commonly referred to as the “stimulus bill,” was intended to jump-start the economy in the short term and fund long-term investments. Quick funding of state-based projects to fight the recession was a major rationale for expediting the law's passage. However, six months have passed and little of that money has been delivered.
Sources: Recovery Accountability & Transparency Board (8/17/2009); U.S. Census Bureau.
Click to Enlarge Map.
The Obama administration has announced $230 billion in recovery funds, but as of two weeks ago, only 19 percent had been paid out to the states. The largest awards have gone to the most populous states, like California, New York, Texas, Florida, and Pennsylvania. Since those states are expected to get the lion's share of a federal program, using per capita amounts allows a comparison of states on the basis of how much they received relative to their population.
States with large per capita allocations probably expected a quick arrival of their recession-fighting funds. The state-by-state disbursement data tells a different story. When it comes to money actually paid out, many states that were promised less are getting the most.
An illustration is the case of Alaska versus Maine. Even though Alaska is owed $2,065 per person (the most of any state), they have only been paid $114 per person. That works out to a 5.6 percent disbursement rate. Maine (with $926 allocated per person) has actually received more funds ($223 per person – a 24.1 percent disbursement rate).
The data suggest that the Alaska-Maine dichotomy is not an isolated comparison. Only seven of the top 20 states for announced funding were able to make the top-20 cut for funds received. Also making this list are five of the bottom 20 states for announced funding. The maps above show just how different the rankings are for eventual and current federal assistance. Announced funding ranges from $610 per person in Florida up to the large sum given to Alaska; paid funds range from $62 per person in Nebraska to $250 for Rhode Island.
By the time the recovery money is fully paid, states with the largest total allocations will obviously be tops in terms of money received. But disbursement will be completed some time from now, perhaps even after the current recession has abated.
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