Stimulus - Yes, No, How Much?

It was a busy week! President Obama visited our state to talk about the home foreclosure crisis after signing the American Recovery and Reinvestment Act (ARRA) of 2009 (aka Stimulus Package), prompting a flurry of discussion at the State Legislature and Phoenix City Hall. There are high expectations for the funding. A few legislators don't want to accept any of these funds and the strings that go with them. Others see the money as an opportunity to backfill some of the State's budget shortfall.

The Joint Legislative Budget Committee (JLBC) analyzed ARRA's more than 1,000 pages and offered preliminary estimates with the caution that the estimates are subject to change. Funding is mostly available for two years (FY09 and FY10); it is not designed as permanent assistance; and the much of the funding comes with "maintenance of effort" conditions requiring the State to keep funding levels from dropping below past funding amounts.

For more detail, see the JLBC preliminary analysis of the American Recovery and Reinvestment Act - Federal Assistance to Arizona (02/19/09). Their most recent budget and revenue updates are available at http://www.azleg.gov/jlbc/what'snew.htm.

Source: P.L.A.N