WASHINGTON, Feb. 20 (UPI) -- Much of the $200 billion flowing from the U.S. government to the states under the stimulus bill comes with strings attached.
About one-third of the money, $65 billion, is allocated to specific projects, Stateline.org reported.
Scott Pattison, executive director of the National Association of State Budget Officers, said that $135 billion can be put in general funds and used to offset cuts state legislatures and governors might have had to make to close budget shortfalls. That includes $87 billion for Medicaid, $39.5 billion for a fund to help states avoid cuts in education and $8.8 billion for law enforcement.
The rest of the money is to be used for infrastructure projects like highway and bridge repair. President Barack Obama has said that states should spend the money quickly to get the economy moving.
Experts on state finance say that the 50 states face a collective revenue shortfall of $250 billion over the next two years.
