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Saturday, November 7th, 2009

Are States Blind to the Big Picture?

July 8, 2009 by Mark Ellis  
Filed under Business

According to a government report released today, struggling states have been using their piece of the stimulus money pie to solve immediate problems, rather than to establish the framework for fiscal strength in the future. The Government Accountability Office report reveals that many states have been divesting money from long-term programs to prevent layoffs and keep state initiatives afloat.
 
One of the hardest-hit sectors of most states is education, with states funneling money from education to other needs. School district officials across the country have expressed their concern over the lack of funding that has left many of them unable to expand educational programs, build new schools, or maintain the kind of quality educations to which children should be entitled.
 
Another example of mismanaged funds, according to the Government Accountability Office, is the funds set aside for infrastructure in many states. Instead of waiting for environmental clearance and other important steps, plenty of states have opted for pavement improvements that do not need any extensive work.

Image: Flickr

Image: Flickr

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