Budget crisis forces states to spend creatively: Duncan

Reuters:

In these challenging financial times -- what I call 'The New Normal' -- governments at every level face a critical need to cut spending where we can in order to invest where we must," Education Secretary Arne Duncan wrote to U.S. governors while offering "some options on the effective, efficient, and responsible use of resources in tight budget times."

The $821 billion economic stimulus plan passed in 2009 included the largest transfer of federal funds to states in U.S. history, with much of the money targeted toward healthcare and education.

The plan runs out this year and the states, which are only seeing a modest uptick in revenue as they still struggle with the fallout of the recession, are looking for places to cut to keep their budgets balanced.

Posted by Jim Zellmer at March 5, 2011 1:43 AM
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