Why aren't our states spending the stimulus?

[clear eye]

According to CLASP (the Center for Law & Social Policy) using data from Health and Human Services, of the $2billion allocated to the states as Child Care and Development Block Grant Funds, as of last Aug 18th, only 9% was drawn down. http://www.clasp.org/admin/site/documents/files/ARRA-tracking.pdf These funds could be used for subsidized child care for working families in these hard times. The linked report shows the outlays broken down by state. It doesn't follow any red state/blue state pattern.

I don't get it. Can anyone explain this?

[Egnever]

1. I cant but ...

I'll kick it for others who might be interested.

[Thickasabrick]

2. Well.....the republicans blame it on the clause that says you have

to buy american products. They want Obama to roll this clause back because it makes it too "hard" to implement the projects.

Whiny bitches.

[happyslug]

3. Co-payments? States are broke and can NOT meet the Matching funds required,

Generally when the Federal Government provides funds, their expect the state to provide a match. This varies, for example for Transitional Aid To Needy Families (TANF, what most people call "Welfare") it is a 50% match. For every dollar the Federal Government pays, the State must pay a dollar. On the other hand CHIP (Children Health Insurance Program, for those people who make to much money to be on welfare) the Federal Share can be as high as 85% of the total program costs.

Even better federal share comes in regard to Highway construction for it is generally a 10% match, the Federal Government pays 90 cents of every dollar but the State MUST match it with 10 cents to every 90 cents the Feds pay.

This seems to be the reason, every state wants to reduce its deficient, even if that means less Federal Dollars.

Example of such stories:
http://www.heartlandalliance.org/whoweare/news/clips/bare-bones-budget-endangers-federal-matching-funds.html

http://www.hrsa.gov/medicaidprimer/

http://www.nhpf.org/library/background-papers/BP68_CHIPFundamentals_04-23-09.pdf

http://www.commonwealthfund.org/Content/Newsletters/States-in-Action/2009/May/April-May-2009/Snapshots-State-Responses-to-Federal-Stimulus/Louisiana-Facing-Drop-Off-in-Federal-Matching-Funds-for-Medicaid.aspx

USDA Matching funds FAQ:
http://www.csrees.usda.gov/funding/scri/scri_matching_funds_FAQ.pdf

[clear eye]

4. Thanks for the (unhappy) answer

The CLASP report doesn't indicate what matching funds are required.

Sounds like cut-off-your-nose-to-spite-your-face behavior and the ordinary people are the "face". Oddly broke Ohio took lots of fed dollars and spendy NY took none.

[happyslug]

6. I do NOT know if it is, but that is what I suspect.

Just a comment that it is MY suspicion that it is a matching fund problem, but I have no personal knowledge and can find nothing on the net to support my suspicion.

[Laelth]

5. +1 Good answer. Thanks. n/t

:dem:

-Laelth