States say they’ve been kept afloat during the economic downturn by critical federal aid, but, with stimulus money set to run out soon, a report from conservative economists argues that another infusion would postpone, and could worsen, states’ eventual reckoning with troubled budgets.
Last year’s stimulus bill designated hundreds of billions of dollars to states, either directly or indirectly. The aid peaked this year before dropping dramatically. States say they’re still hurting, though, and Congress is trying to figure out how much more aid to extend, and for how long.
Chris Whatley, director of the Council of State Governments’ Washington office, said the consensus is that Congress will provide higher Medicaid reimbursements to states for six months past the December expiration but that a broader round of spending to include education and other programs is unlikely.
“That’s basically out the door,” he said. “There are those who are certainly trying to revive it, but I don’t know many in the state community who are counting on that.”
Full story: Economists warn against more state aid – Washington Times