State Budget Update: Federal Stimulus Dollars Begin To Dwindle As Budget Impasse Continues

Over the last year, the state has relied heavily on funding from ARRA to ease the pressure on both state-run programs and local businesses and nonprofits. But now federal lawmakers are reluctant to approve another big stimulus bill due to concerns over the growing national deficit.

ARRA provided an estimated $787 billion to states in order to spur economic activity and jumpstart growth. California's share -- approximately $85 billion -- has been used to fund new infrastructure projects and to prop up existing programs. During the last fiscal year, the California Department of Education utilized $91 million in ARRA funding to supplement some state child care programs, including Alternative Payment programs and Stage 2 and 3 CalWORKs. ARRA also provided an estimated $50 million in grant funding for the Early Start program in California, as well as funding for the Individuals with Disabilities Education Act (IDEA) Part B preschool grants.

Federal stimulus funding has also been tapped to provide grants to local businesses and nonprofit agencies. In Los Angeles County, an estimated $5.6 billion in grants has been awarded, including $2.4 million to schools, early care and education centers, and other educational institutions.

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