Monday, February 9, 2009

Cash Advances Cancelled for Many Causes in Stimulus Package

No payday coming for some organizations

Many organizations and causes expecting cash advances through the government’s massive economic stimulus package will have to wait for other bills to come along. During the course of the debate so far regarding the stimulus package, a total of 41 items have been cut from the bill completely. Others have had the amount they will get reduced

To view the full list of items cut, visit CNN Money. I will detail some of the bigger cuts here.

State fiscal stabilization

One of the biggest items in the bill was infusing state budgets with cash. Surprisingly, the entire $40 billion that was dedicated to helping states balance their budgets has been cut from the bill completely.

I am sure that other items in the bill will help state budgets, and as long as the country’s economy is stimulated as a whole, the state economies will benefit, too. I have to say, though, with all of the other items that are in the bill, it surprises me that funding specifically dedicated to no other purpose besides financial stabilization was cut.

School construction

The biggest cut made to the stimulus package so far was the money slated for constructing schools. The cause was going to get $16 billion under a previous version of the plan. Now that funding has been completely eliminated.

I can argue for both sides of this decision. Constructing schools would accomplish a key goal of the stimulus package: to create jobs. More and better education will also be good for the economy in the long run. However, because of the time it takes to build schools, it would be a while before actual job creation began, and Congress has been stressing that the stimulus needs to work quickly. Also, more teacher jobs would ultimately cost the government more money. ... click here to read the rest of the article titled "Cash Advances Cancelled for Many Causes in Stimulus Package"

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