Report Shows ARRA Funds Are Benefitting Arizona

Posted on | December 15, 2009 |

Stimulus funds from the American Recovery and Reinvestment Act (ARRA) are helping to save thousands of Arizona jobs, help families survive the recession, and cushion state and local budget cuts according to a new publication released by Children’s Action Alliance.

Arizona governments will have received more than $6.2 billion in ARRA funds by December, 2010, for state government, cities, towns, school districts, and Indian tribes. The Council of Economic Advisers estimates that ARRA has saved or created about 21,400 jobs in Arizona as of August 2009. In addition to state and local budgets, ARRA includes provisions which benefit Arizona families directly, including extended and increased unemployment insurance benefits, higher food stamp benefits, and increased Pell grants.

The Children’s report highlights the budget cuts and job cuts that have been prevented through the stimulus funds.  It also warns about the dangers of the “cliff effect” when the current stimulus money runs out in December 2010 before state revenues have returned to anywhere approaching normal levels.  Congress is considering a legislative package to spur job growth that would include financial assistance to the states to cushion the cliff effect.

See http://www.azchildren.org/MyFiles/arra%20report%20nov%2009%20for%20web%20and%20distribution.pdf for a copy of the full report.

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