Some states get share of stimulus faster

Stimulus money is flowing far more slowly to some states than others.

ByABC News
August 13, 2009, 1:33 AM

WASHINGTON -- Stimulus money is flowing far more slowly to some states than others, a USA TODAY analysis shows, despite the Obama administration's push to speed up spending to help jump start the nation's economy.

Nearly six months after President Obama signed the $787 billion stimulus bill, some states, such as California, have collected more than half of the money that's been promised to them so far. Ten others, such as Alaska, New Hampshire and Wyoming, have been paid less than a quarter, the review of federal spending reports shows.

How quickly states draw on their stimulus funds depends largely on state actions and needs, said Ed DeSeve, Obama's senior adviser on the stimulus. The administration has pushed states to spend some of that aid more quickly.

"Just as we push ourselves to get the money to the states quickly, we are urging the states to push the funds out quickly," says Education Department spokeswoman Sandra Abrevaya.

Obama said two months ago he was "not satisfied" with the pace of spending and vowed to accelerate it. Since then, the Education Department has made $2.7 billion available months sooner than planned.

The money has flowed fastest to distressed states like California and Michigan, which have moved swiftly to claim their share of the federal aid. But those states have to plan carefully to avoid even more severe problems when the stimulus money runs out, says Nicholas Johnson of the Center on Budget and Policy Priorities, a liberal think-tank.

Officials in states such as Illinois and Massachusetts that have gotten aid more quickly say they're preparing for the end of their stimulus aid by raising taxes and cutting expenses. "You always have to balance being quick with being responsible," says Kristi Lafleur, a deputy chief of staff to Democratic Gov. Pat Quinn of Illinois.

In other states where the money has flowed more slowly, such as Texas and West Virginia, officials say they do not need the money as urgently because their economic outlook is not as dire.