State plugged budget gap with stimulus funds

[IndianaGreen]

State plugged budget gap with stimulus funds

January 17, 2010

BY GITTE LAASBY

More than half of the $156.6 million that Northwest Indiana received in stimulus funding through the end of September went to schools.

A Post-Tribune analysis of federal data shows schools received $87.4 million, or 55.8 percent of the total amount of stimulus funding awarded to the region between Feb. 17 and Sept. 30, 2009. School officials say they're spending the two-year grants on expanding programs that help struggling students. They also hired and trained teachers and bought new equipment.

However, school officials say they have less to show for the money than could be expected. That's because the state snagged $610 million of stimulus funding intended for Indiana schools and substituted it for funding the state normally provides. The money saved now plugs a state budget hole.

"It was used for off-setting state aid that goes out to all the school corporations," acknowledged Cris Johnston, executive director at the state's Office of Management and Budget.

Johnston didn't know how much money the state took from Northwest Indiana districts, but said the state saved about 10 percent of funding for schools because of stimulus money.

http://www.post-trib.com/news/1994785,stim-indiana-0117.article