National Debt Clock

Tuesday, December 22, 2009

Study: Schools Face Shortfalls After Stimulus Ends

Using federal stimulus money to avoid layoffs at schools is going to create a shortfall even more difficult for states and schools to contend with when that money runs out, according to a first-of-its-kind study released Monday.

In July, the GAO cautioned that many states facing deep deficits were using stimulus dollars to fill budget holes and avoid layoffs, rather than reforms that could mean longer-term savings or programs such as building new schools.

When one saves a job, it doesn't mean one saves it indefinitely," she said.

The Congressional Budget Office has noted the difficulty of measuring the number of jobs saved by the stimulus. "It is impossible to determine how many of the reported jobs would have existed in the absence of the stimulus package," a CBO report said last month.

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