While we’re discussing the devastating effects of the Senate stimulus compromise on state budgets, it’s worth pointing out that the centrist negotiators didn’t just cut $40 billion in state aid.
The stimulus deal cut over the weekend also restricted states’ use of stabilization money, requiring governors to use all of their share on education. Under the original Senate stimulus, states could use 61% of their aid from Washington on education and the remaining 39% on public safety or other pressing needs.
By no means am I suggesting that education isn’t a worthy use for that cash. But if the centrists had left aid to the states intact, rather than cutting it in half, perhaps California could avoid furloughing government workers without pay. And maybe North Carolina could avoid shutting down mental hospitals and a major prison.
